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Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Wave makers set to cause ripples
Wave makers set to cause ripplesKeywords: Business centres, Market share
A total of 15 wave makers captured over £270 million worth of market last year and this trend is set to continue, according to the latest publication from Plimsoll, the Plimsoll Portfolio Analysis: Business Centres, 1st Edition, 2001.
Analysing 303 UK companies in the business centres market, each of these 15 companies added over £1 million of extra sales to their business and captured 6 per cent of the market in the last 12 months (see Tables I and II).
Individually these wave makers grew 28 per cent on average last year. However, one of them grew at only 7 per cent – yet this totalled £1.7 million in extra sales. Their average size is an unimpressive £12 million, yet collectively their turnover is almost £12 billion. More bizarre, not all of these companies are making a profit. In fact, four were loss making.
"Many of these companies are perhaps not your direct competitors as they are diverse in their activities and many have complex product ranges. Yet they are saying something about your market and the changing customer", said Don Turkington, managing director of Plimsoll.
Four companies saw sales decline by at least £1 million pounds with a combined decline of over £40 million. In a market that saw 11 per cent growth last year, this is a severe decline in market share. Yet these sinkers have collectively lost 5 per cent of the market to the wave makers and saw sales on average decline by 0.81 per cent.
The drifters are companies that as yet are not having much effect on the market having nor added much in the way of sales last year. Despite some growing fairly rapidly in percentage terms this only amounted to £112,000 worth of business. None of these 82 companies added more than £1million to their sales figures.
A full copy of the Plimsoll Portfolio Analysis, individually analysing 303 UK business centres companies, is available for £305 by ringing Jennifer Ovington on +44 (0) 1642 257800. Readers of this publication can claim a 5 per cent discount when mentioning this article on ordering.