Good News for UK Manufacturers and Distributors
Plimsoll’s latest report issues good news for the UK tyre manufacturers and distributors industry by announcing that the value of 59 per cent of companies in the industry has increased in the last 12 months, some by as much as 50 per cent.
David Pattison, senior analyst at Plimsoll, explains: “Having valued many companies in the UK tyre manufacturers and distributors industry in the last two years, I am amazed that despite poor margins and low growth being commonplace in the market, so many of them have managed to increase in value. While 16 per cent of companies saw no change, only 25 per cent of the industry suffered a fall in value.”
In Mr Pattison’s opinion the key to improving the value of a company is to concentrate on the fundamentals: “In 2004, many companies in the industry focused solely on increasing sales at all costs. Ironically, it is the companies that chose instead to focus on improving their internal structures that have increased in value the most.”
As well as offering a valuation and analysis of a company Plimsoll also conducts the same exercise for a company’s 10 closest competitors to put the information into perspective. A future ‘business plan year’ is also included for each company to show how it might improve in value, either under existing or new ownership.