98% Of Growth Goes To Just 69 Printing Companies

A new report has claimed that 98 per cent of last year's sales growth in the UK printing industry went to just 69 firms.

A new report has claimed that 98 per cent of last year's sales growth in the UK printing industry went to just 69 firms.

That is a claim that has emerged from the results of new analysis of the market by Plimsoll Publishing.

According to Plimsoll, the other side of the coin is that many others are struggling to survive in an atmosphere of declining sales and increasing debt, with at least 55 business staring failure in the face.

The assessment confirms that constant rounds of consolidation are creating 'super companies' that are exerting an increasing control over the market.

Most of the companies in question are large, with sales over GBP10m.

But 16 companies have sales of less than that - an indication that it is not simply a case of smaller firms being squeezed out, believes Plimsoll.

The Plimsoll research includes an individual analysis of 790 companies in the printing sector and shows the impact that the increasingly powerful companies are exercising in the market.

David Pattison, senior research analyst at Plimsoll Publishing, commented: "Looked at separately these 69 super companies are great news for the industry.

Yet the reality is much more disturbing.

These companies are forcing such intense competition that others are battling for survival." He added: "Unless some of the worst performing companies start to come to terms with the financial implications of flat or declining sales, they will go bust or be forced to sell up.

It really is a time of either joy or tears.

The market hungry companies will use this analysis to seek out firms to approach and buy.

For the others, desperate to sell, it's a case of finding a buyer." Amongst the 721 other companies covered in the analysis, Plimsoll said that 301 firms are caught in the retreat, despite efforts to control their costs, reduce staff numbers or sell off some investment.

So far that has had little impact on their ability to stay in the market, added the company.

At the same time, the report reveals that 140 of the worst affected companies saw sales decline by an average of seven per cent in one year.

As a result, more that half of these lost money because extra costs could not be passed on in to sales.

Plimsoll added that the analysis also showed that 55 of those firms are working under such an escalating debt burden that the likelihood of failure must be considered extremely high.

Plimsoll Publishing said that its full analysis contains an individual profile of each of the UK's top 790 printers companies.

It shows at a glance the impact the changing marketplace is having on each company.

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