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Falling company values in UK cleaning industry

Published 24th May, 2010 by Neil Nixon

Falling company values in UK cleaning industry

382 companies in the UK cleaning services industry have lost over a third of their value in a year, according to new research by analysts Plimsoll. In fact, out of the top 1000 companies analysed and valued in a special edition of the Plimsoll Analysis – Cleaning Services, 635 companies are worth less than they were last year.

David Pattison, senior analyst at Plimsoll, explains the impact the last couple of years have had on the value of companies in the UK market: “It’s not surprising that the value of companies have taken a pounding recently but the extent of the squeeze is striking. Only 363 companies managed to increase their value - a record low.”

Aside from an obvious lack of eager cash rich buyers, Pattison suggests there are some more fundamental reasons for the big dip in the value of certain companies: “A number of factors have affected values. As demand slackened and companies were inclined to protect their market share, many saw profitability fall as a result. Declining margins have been the biggest weight on values in the market. The 382 companies that have suffered 30% and more falls in their value have all seen their profit margins plunge too.”

So is there any hope for company owners tired of the bad news and market pressures? Pattison suggests there is: “Despite it all, 363 companies are now worth more than they were last year. Considering the malaise in the market over recent years that is a quite remarkable achievement. I hope it points to better times ahead.”

This new report has been in the pipeline for two years but, as Pattison explains, the timing has not been right in recent years: “Valuing a company during the turbulence of the past few years has been a ‘finger in the air’ exercise in guesswork. With conditions now more stable, we have released the study to show how much each company in the UK Cleaning Services industry is worth and what affect the recession has had on their health.”

In addition to valuing 1000 companies in the market, the new Plimsoll Industry Analysis - Cleaning Services will tell you instantly which companies are prospering in the post recession market place, those taking a big gamble and those heading for trouble. It gives an instant performance rating on each company and highlights those ripe for acquisition. Each company is assessed using the Plimsoll Model - a graphical and written analysis that lays bare the facts and gives you instant opinion.

Readers of Cleaning and Maintenance are entitled to a £50 discount on this new edition of the Plimsoll Industry Analysis - Cleaning Services. Call 01642 626400 for further details and quote reference PR/ SV20.

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