£3.2 billion worth of profit lost every year

Citation

(2004), "£3.2 billion worth of profit lost every year", Aircraft Engineering and Aerospace Technology, Vol. 76 No. 3. https://doi.org/10.1108/aeat.2004.12776caf.007

£3.2 billion worth of profit lost every year

£3.2 billion worth of profit lost every year

Keywords: UK, Aircraft industry, Equipment

The latest Plimsoll Portfolio Analysis – Aviation Equipment claims that a cataclysmic 3.2 billion of profit is being wasted in the UK Aviation Equipment industry every year, due to blatant under performance and a failure by company leaders to focus on the bottom line.

A quick glance at the latest publication from Plimsoll Publishing Ltd reveals:

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  over a quarter of companies are making a loss,

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  fifty-three companies are losing money for the second year in row, and

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  fifty per cent of companies make less than 2 per cent return on investment.

David Pattison, Senior Analyst at Plimsoll Publishing Ltd, says, “These figures show just how competitive the UK Aviation Equipment industry has become. The ability to make a profit is becoming the exception, not the norm.”

David continues, “Although in the minority, 61 companies delivered a 10 per cent return on investment in 2003, proving that success is achievable within the industry. This is the level of profitability required to provide a good return to shareholders, pay for investment and help to ensure company longevity.”

The latest edition of the Plimsoll Portfolio Analysis – Aviation Equipment has given each of the top 450 companies in the industry a “Profit Plan”. The “Profit Plan” identifies how each company needs to focus on its bottom line and make more profit. Using budgeted figures, the analysis shows that a staggering £3.2 billion million in extra profit could be created. This profit potential is currently being unexploited.

To succeed in 2004, managers need to learn from the winners by improving company profitability. The Plimsoll Portfolio Analysis identifies where improvements must be made.

The Plimsoll Portfolio Analysis – Aviation Equipment takes a critical look at the individual performance of the top 450 companies in the UK Aviation Equipment industry and also assesses their financial health. The 556 page analysis is available in paper or electronic format. It examines the last 4 years' profitability of these companies, highlighting the winners and losers in this key area of company performance.

Nineteen per cent of Air Transport industry upbeat on 2004 performance

A second report recently published by Plimsoll informs us that with sales set to increase an average of 3.4 per cent and profit margins likely to remain low but steady at 1.5 per cent, the Air Transport market looks set for a rewarding year in 2004.

The recent survey from financial publishers, Plimsoll, found that 19 per cent of the 450 companies surveyed are showing unprecedented confidence about their prospects in 2004. This latest study profiling the UK Air Transport industry has looked at how each of the 450 companies surveyed will perform in 2004. Plimsoll's research found three distinct views on the New Year.

Nineteen per cent should see 2004 as a good year

Nineteen per cent of companies in the Air Transport industry are set to exploit this buoyant market. These companies built a strong company to get ahead of the competition in 2003 and have currently set themselves up for continued expansion in the market. Sales look to increase at a staggering 10 per cent on the average and margins could be as high as 9.9 per cent.

Forty-six per cent should see 2004 the same as 2003

Forty-six per cent of the industry will be in transition spending 2004 focused on internal problems. Sales will be more than likely be fiat, but margins could be as high as the industry average of 1.9 per cent.

Thirty-five per cent should see 2004 as a difficult year

Thirty-five per cent of the industry will be carrying past financial difficulties into 2004. Many of these companies were found to be losing money. Their immediate concerns are to reverse this loss- making, but they will need to react quickly if they are to survive in 2004. Sales could drop by as much as 10 per cent at these companies, yet margins must improve as they are currently losing an unsustainable 5 per cent on sales.

David states, “I think these findings prove how industry averages disguise the reality of what is really going on in the market and how easy it is for business leaders to misread the market. To see the facts you really need to look at these individual companies and see the different challenges each face in 2004.”

The latest first edition 2004 Plimsoll Analysis profiles each of the top 450 UK companies in the Air Transport industry individually and looks how the company's historical performance will drive its performance in 2004. Each of the 450 companies has been given a projection for 2004.

Readers wishing to place an order can receive a 5 per cent discount and a free 2004 Business Confidence Pack profiling each of the 450 companies on their confidence for 2004.

Details available from: Plimsoll Publishing Ltd. Tel: +44 (0)1642 626400; Web site: www.plimsoll.co.uk