Is Time Running out for 28% of the Sound Systems Industry?
Friday, 3 November 2000
Over a quarter of all UK sound systems companies will not see out 2001 in their present shape, according to Plimsoll Publishing. Identified in their new First Edition 2001, Plimsoll Portfolio Analysis they are predicting in 2001 these companies will disappear, be taken over or be forced to change to stay in the market.

The analysis, which included 1019 companies in total, predicts that the Winners and the Chancers, who are capturing market and profits with a combined sales growth average of over 15.2% are pushing the Losers out of the market. As they try to maintain sales and profit targets, acquisition activity could intensify in 2001.

The First Edition 2001 describes four types of company strategy. The Winners have low borrowings (debt) as a % of sales and have high sales growth. The Chancers have high borrowings and high sales growth. The Sleepers have low borrowings and low sales growth, whilst The Losers have high borrowings and are growing below average.

For these 131 Losers, time is running out. Their level of debt is high at 38% of sales on average. These companies have lost market share and sales growth average for the latest period is showing an average decline of 11.5%. Their margins are showing a loss of 2.0% on average and almost 60% of them are loss-making. They have borrowed to stay in the market, but how long can this strategy be maintained?

The publication contains an up-to-date analysis of 1019 UK sound systems companies covering their last four years of trading. To order a copy call Jennifer Ovington on +44 1642 257800, or for a full version of this particular research visit www.plimsoll.co.uk. Readers of L&SI can obtain a 5% discount upon ordering.


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