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News Release from: Plimsoll Publishing | Subject: UK printing companies profitability report
Edited by the Printingtalk Editorial
Team on 16 July 2007
UK Printing Firms Waste GBP525m Profit
Every Year
The British printing industry is wasting GBP528 million worth of profit every year, with 17 per cent of companies making a loss and 12 per cent losing money for the second year running.
That is according to a new study now available, which also found that 1,109 of the 1,500 companies covered in the report would make more profit under new ownership, resulting in an extra GBP528m of revenue in the UK printing industry The report, by business analysts Plimsoll Publishing, also revealed that that four per cent of companies made less than three per cent return on investment
This article was originally published on Printingtalk on 23 Feb 2007 at 8.00am (UK)
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According to Plimsoll, money is being thrown away because of companies' failure to control their losses and manage their businesses more effectively.
The senior Plimsoll analyst who worked on the project, David Pattison, said: "These results prove just why the printing industry is currently hot with take-over talk and speculation about future ownership.
It's certainly no surprise that trade buyers and private financiers are taking a close look at the industry and some of those printing businesses have huge potential that is not being realised at the moment.
We've heard a lot about private equity firms recently and this is one industry where they could reap rich rewards." Plimsoll said its report highlights each firm's hidden potential and demonstrates how simple changes can transform the performance and overall value of a company.
Some of the strategies that companies are failing to put in place include cutting out unprofitable sales, where in some cases, a 10 per cent drop in sales could improve profitability, whilst also looking again at unnecessary stock levels and keeping control of trade debtors to free-up cash.
The company also suggested that reducing borrowing to improve profitability and reviewing productivity to the point where sales per staff member are at least GBP90,000 are tactics that could be successful.
According to Plimsoll its analysis of the UK printing industry applies the same tests to each business that any corporate investor would, identifying a profit plan for each one and outlining its strengths and weaknesses in an easy to understand format.
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