Values of UK forklift companies drop
Thursday, 6 May 2010
Stockton, United Kingdom
The latest research by Plimsoll Ltd shows 201 companies in the UK forklift industry have lost more than a third of their value in a year.
David Pattison, Plimsoll's senior analyst, says the last two years have had an impact on UK forklift companies.
"It's not surprising the value of companies has taken a pounding recently, but the extent of the squeeze is striking. Only 157 companies managed to increase their value, a record low."
Plimsoll analysed and valued 500 companies for its study. Pattison suggests the dip in the companies' values is caused by a few factors, besides a lack of cash-rich buyers.
He says as the forklift market declined, companies were inclined to protect their market share at the cost of profitability.
"Declining margins have been the biggest weight on values in the market. The 201 companies that suffered 20% and more falls in their value have all seen profit margins plunge too."
Pattison suggests there is hope for company owners tiring of marketing pressures and bad news, pointing to the 157 companies in the study that are now worth more than they were last year. "Considering the malaise in the market over recent years that is quite a remarkable achievement. I hope it points to better times ahead."
Besides valuing the companies, the Plimsoll Industry Analysis - Forklift Trucks identifies companies that are prospering in the post-recession market place, those that are taking a big gamble and those headed for trouble. Forkliftaction.com News readers get a GBP50 discount if they call +44 1642 626400 and quote reference PR/SD33.