Report rates UK's largest forklift companies.

Despite the gloomy UK economic climate, a number of forklift companies are turning in "outstanding financial performance".

A new study of the financial state of the UK forklift industry by analyst Plimsoll Publishing has found that despite the recession, 128 of UK's top 483 forklift companies come in with strong financial ratings.

Plimsoll has allocated each of the UK's largest forklift companies to one of five ratings based on their overall financial performance. Ratings have been given as Strong, Good, Mediocre, Caution and Danger.

More than a quarter (27%) rated "strong", while at the other extreme, 20% face uncertain futures and are ranked in the Danger category.

David Pattison, senior analyst at Plimsoll, is not surprised to see the high number of companies on the Danger list, given the current economic crisis.

"However, we were very surprised to see the high number of excellent businesses making it on to the Strong list. I think these firms have really upped their game in these difficult times and they are concrete proof that necessity is the mother of invention," he says.

On average, the Strong firms have seen sales increase by 15.8%, which Pattison describes as "an impressive statistic in a market which is generally flat".

This demonstrates the strongest players' ability to take marketshare from their rivals, he notes.
Plimsoll sees strong companies recording profit margins averaging 5.3% "as they have cut costs and used competitive buying to increase their bottom line".

Pattison is concerned about the 212 firms rated as Caution and Danger, saying their futures look extremely uncertain. "Their management are now operating under severe financial pressure where even normal trading is proving hazardous. Many of these firms seem likely to be sold off; they are at an extremely high risk of failure unless they turn their performance around fast."