Good news

Citation

(2001), "Good news", Anti-Corrosion Methods and Materials, Vol. 48 No. 1. https://doi.org/10.1108/acmm.2001.12848aaf.002

Good news

Good news

Keywords: Plimsoll, Financial analysis, Metal treatments

We understand that congratulations are in order for 30 companies just named as the Best Trading Partners in the metal treatments industry, according to financial analysts, Plimsoll Publishing. These metal treatments companies have excelled in their latest trading year achieving over 13 per cent sales growth and over a 8 per cent pre-tax profit margin on average. Their success is based on a combined measure of sales growth and sound financial management.

Over the coming weeks these companies will receive their Best Trading Partners award and will be asked to provide an acceptance speech to be published on the Plimsoll Web site, www.plimsoll.co.uk Each of these 30 companies were named in the Metal Treatments October 2000 edition.

What, you may ask, have these companies been doing to achieve such success? Growing in a stagnant market, is one answer; these 30 companies are obviously bringing innovations to the market. They have achieved over 13 per cent sales growth in a year on average. One company managed to achieve a 62 per cent sales growth.

Growth was achieved while maintaining an 8 per cent pre-tax profit margin on average. One company achieved a 39 per cent pre-tax profit margin.

The total number of employees in this group overall increased by 3 per cent. That means that 1,363 more people now work at these 30 companies. One company was able to increase their staff by 23 per cent.

Sales per employee numbers increased from £87,000 to £101,000 per person on average within these 30 companies. One company achieved a sales per employee figure of £361,000.

What types of company are they?

It appears that the size of company was not a factor in success. In fact six companies had sales of less than £1 million and a further nine had sales of less than £5 million. Only 15 of the companies have sales above £5 million.

The age of a company was not a factor either, as 15 of the companies were only incorporated after 1990. It was good to see that nine of the companies started trading back in the 1960s.

There did not seem to be any correlation regarding a particular aspect to the industry, although they operated in quite different areas of the industry and areas of the country.

What are the implications on the rest of the industry?

As these companies gather momentum the impact on the rest of the industry could be harsh! How else do we explain that 53 per cent suffered a decline in sales last year and 44 per cent of the industry suffered a fall in profits? One-quarter of all metal treatments companies actually fell into loss.

According to Plimsoll the 30 top companies should enjoy the moment, use the profits wisely and respect the competition, as continued success relies on the future failings of others. Plimsoll's latest October 2000 edition on the metal treatments industry individually analyses 1,313 companies using a company's latest four years of audited accounts. It also provides over 100 pages of comparative industry analysis. This report can be ordered for £305 by calling Jennifer Ovington on +44 (0)1642 257800. Mention this article on ordering and you will receive a 5 per cent discount.

Further details are available from Plimsoll Publishing Ltd. Tel: +44 (0)1642 257800; Fax: +44 (0)1642 257806; E-mail: plimsoll@dial.pipex.com; Web site: www.plimsoll.co.uk