5/22/2010 10:59:00 AM
Plimsoll: One in 8 UK Fastener Companies Could Change Ownership Due to Economy
A Plimsoll Industry Analysis on the fastener industry finds “cash rich competitors waiting in the wings” to acquire UK fastener companies and the “market could be set for a prolonged period of consolidation.”
One in eight UK companies could change ownership due to the current economic climate, author David Pattison suggests in the 2010 analysis of the fasteners and fixings market.
“I am sure any director worth his salt would agree that in the current climate, there are simply too many companies chasing too little market,” Pattison wrote.
The Plimsoll fastener and fixing analysis identifies 125 companies with “sizeable cash reserve sat on their balance sheets that, due to record low interest rates, is generating nothing,” Pattison noted. “These companies are now in the position to buy up large chunks of market share at rock bottom prices and make that money work for them.”
Pattison termed them as “like kids in a sweet shop at the moment – all those distressed competitors available at a fraction of their true value.”
Fasteners are “regarded as one of the UK’s most fragmented sectors.”
The 2010 Plimsoll Analysis / Fasteners & Fixings analyzes 177 companies operating in the UK.
The report includes company financial health assessments, ownership and board members; and a takeover attractiveness rating.
Sector analysis includes: Sales growth, market share and profitability with company rankings over the past 10 years.
©2010 GlobalFastenerNews.com
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