Small UK companies in difficulty, study says
Thursday, 17 June 2010
Stockton, United Kingdom
Market analyst Plimsoll has identified 63 small UK forklift companies that are in financial difficulty as the lingering effects of the credit crunch continue to bite hardest at the lower end of the market.
David Pattison, author of the Plimsoll Analysis - Fork Lift Trucks, says smaller companies have not had the same facilities as their larger counterparts to ride out the recession.
"While larger companies have relied on their size, brands and better access to cash, smaller companies have been left high and dry."
He explains that Plimsoll has given 63 small companies a "danger" rating.
"While conditions have improved [lately], I fear a high proportion will fail. Whereas large companies can call on banks and parent companies to cut out loss-making parts of their operations, smaller companies are increasingly running out of cash."
Pattison also points out that small companies are struggling to maintain their marketshare and says that 146 small companies are selling less than last year.
"Clearly, they have seen demand for their products dip or, worse still, a new competitor has emerged. With their finances already stretched, they have little left in their arsenal to fight back."
So what is next for these small companies?
Pattison thinks that there will inevitably be another round of consolidation with large companies buying the smaller ones at a discount.
"Of the 357 companies with assets of less than GBP3 million (USD4.4 million), we have identified 152 companies as being vulnerable to takeover."
The new Plimsoll study gives a performance rating on 500 UK forklift companies. Forkliftaction.com News readers will receive a GBP50 (USD74) discount off the paper if they quote PR/SD33 when they call +44 1642 626 400.