David Pattison

The UK forklift market could be set for a prolonged period of consolidation, according to a new study by Plimsoll.

David Pattison, the study's author, says that one in seven UK forklift companies could switch ownership as a result of current economic conditions.

"With many directors eyeing the exit doors and highly leveraged buyouts consigned to history for the time being, it really is a buyers' market out there for the cash-rich companies," Pattison says.

He adds that his study has identified 48 companies that have a "sizeable cash reserve sitting on their balance sheets" that, due to low interest rates, is generating no additional income.

"One company has a [significantly huge] cash pot, a whopping 80% of turnover. These companies are now in the position to buy up large chunks of marketshare at rock bottom prices.

"They must be like kids in a sweet shop at the moment - all those distressed competitors available at a fraction of their true value," Pattison says.

The Plimsoll report analysed 231 companies with a turnover of over GBP1 million a year and has picked out 73 that are primed to be taken over.

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