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News Release from: Plimsoll Publishing | Subject: 2004 Plimsoll Analysis on UK Instruments
Edited by the Processingtalk Editorial
Team on 01 June 2004
The UK Instruments and Control Devices
Market
Catch us if you can! That's the message 166 Instruments and Control Devices companies, the Chasers, will be putting out in 2004 to the rest of the UK Instruments and Control Devices industry
Catch us if you can! That's the message Plimsoll Publishing says 166 Instruments and Control Devices companies, they've dubbed as Chasers, will be putting out in 2004 to the rest of the UK Instruments and Control Devices industry This is according to the First Edition 2004 Plimsoll Analysis on the UK Instruments and Control Devices market
This article was originally published on Processingtalk on 1 Dec 2006 at 8.00am (UK)
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This just published analysis of 1000 companies has highlighted these Chasers because they are borrowing heavily to capture extra market share.
Their high-risk approach to the industry currently yields a staggering 23.3% sales growth.
This is way above the market growth of -0.6%.
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David Pattison, Senior Analyst at Plimsoll says, "These companies are using what we call 'Disruptive Strategies'.
They are attempting to change the balance of power in the market.
Depending on who you talk to opinions are mixed on these companies.
Some look with envy at their strengths.
Some say they would not want the risk that comes with this kind of company and the 'How do they sleep at night?' feeling is common".
The 166 "Chasers" have a unique set of strengths and weaknesses: Strengths are: Great commitment to the single purpose of increasing sales; Aggressive sales techniques; Willingness to use outside finance to accelerate their goals; A product base capable of "surfing" into their competitors market; Investment in systems and capital gives a 12 months jump on the competition.
All this is intended to force "laggard" competitors out of the market.
Weaknesses of these companies are listed as:Outside finance may restrict future decisions; Heavy debts will hinder profitability, via interest payments; All have a Plimsoll Danger rating - higher risk of failing; Any slow down in sales growth and cash flow could be fatal; 32% are loss making - enhancing the risk and increasing the debts; Desperate to increase sales to pay back debts.
This long-term business strategy is unsustainable to future profitability.
They are at the mercy of increased interest rates, Pattison continues, "As these companies are exposed financially, and they clearly have some advantage going into the market, others in the industry would do well to look at them from an acquisition point of view.
New owners could well reap what these 'Chasers' have sown".
In an industry where sales growth is -0.6% and with 51% of the industry showing a sales decline, the effects of these "Chasers" is already being felt.
They are set to cause the market problems in 2004 by putting more pressure into an already competitive market place.
The 1203-paged Plimsoll Instruments and Control Devices Analysis lays bare the financial performance of each of the Top 1000 companies.
Each company is graded as "Chasers", "Losers", "Winners" or "Sleepers".
To order the analysis for GBP305, get more details or to see if your company is mentioned, please call.
Readers of the publication can claim a 5% discount when mentioning this publication on ordering.
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