Metal Treatments industry – best trading partners
Keywords: Metals, Metal treatments, Trade
Focusing on the best in the Metal Treatments industry as part of a new "Trailblazers Edition", Plimsoll has awarded 29 companies its highest mark of distinction, "Best Trading Partner" in 2001.
Chosen from 1000 companies in the Metal Treatments industry, these 29 companies have been selected for their financial and commercial success. These companies are taking the industry forward, effectively changing the rules of the game and proving that the Metal Treatments industry can reward innovation and niche performance.
Taking an overall measure for success, companies must have a combination of a strong balance sheet, good profitability and sound cash control. They are achieving this whilst capturing market. These 29 "Best Trading Partners" have grown by over 11 per cent on average compared to the industry average of 0.3 per cent. Profit margins at 8.4 per cent on average were also above the industry of 3.1 per cent. But it is their overall performance that sets them apart.
Acorn Hardas LtdAcorn Services LtdBroadways Industrial Powder Coatings LtdCambridge Electro Plating LtdCamlaw LtdCleftbridge Coatings LtdConstruction Coating Co LtdConsultant DevelopmentEngineering Ltd (H)CPK (Industrial Finishers) LtdCronite Castings LtdC&J Clark LtdDoon Valley (Heat Treatment) LtdGleason Works LtdGlobe Heat Treatment Services LtdHycrome (Europe) LtdJohn Folkes (Lye Forge) LtdLockhurst Holdings LtdPalabora Europe Ltd (H)Paneltex Ltd (H)Paul Engineering Co LtdPowdat Enamellers LtdPropak Sheet Metal LtdReflec plc (H)Schloetter Co LtdScore (Europe)Ltd (H)Shotblast Engineering Services plcSpa Aluminium LtdTor Coatings LtdTwickenham Plating Group plc (H)
A few companies listed as a "Best Trading Partner" have been given special mention. The company with the biggest market share increase over last year is the Twickenham Plating Group plc.Sales increased by over £3.1 million and now have sales of almost £11 million. This 29 per cent growth is well above the industry average of -0.3 per cent for the same period.
Earning the biggest turn around in profit margin over the last 12 months,John Folkes (Lye Forge) Ltd. has made a 87.7 per cent improvement and now holds a healthy 53.7 per cent profit margin. With annual sales of over £3.8 million and no debts this company is now able to maximise profitability.
Proving that success is still firmly in their grasp, Schloetter Co Ltd is the oldest company to receive a 'Best Trading Partner' award this year. Incorporated in 1969 with current sales of £9.0 million, this company grew 35.9 per cent in the period covered by the report!
Companies featured in this special "Trailblazers" Edition received a special award to celebrate their success and their contribution to the Metal Treatments industry.
This special edition, priced at £395, also includes outstanding company performance in 15 areas of business, including sales growth, efficiency, best use of people, best young businesses and more..
A second report recently published by Plimsoll "Pricing Guide to the Metal Treatments Industry" was created for people interested in buying or selling their company. Supported by a company's own full audited accounts every company in the industry is analysed and presented with a current and future worth. For many companies, this pricing guide represents an excellent starting point for negotiations.
Combining the analyses of all 1000 companies in the industry, Plimsoll found some interesting measures of company performance versus worth.
On average, prices in the Metal Treatments industry fell by 2.4 per cent in the period covered by the report to £4,730,000. Company valuations saw considerable variation as 57 per cent saw their value decline and 43 per cent saw their value increase (Table I).
Companies with sales in the "less than £500,000" bracket seem to have been hit the hardest in value terms. Their value fell on average by 23 per cent. Smaller companies seem to have improved the most.
The value of the company has almost nothing to do with its size. SSAB Dobel Coated Steel Ltd with sales of £33 million made it into the Top 10,whereas Alumax UK Ltd with sales of £30 million was valued at number 14.
Of the 122 companies where their value increased, the increase was massive adding on average 40 per cent to their value. In most cases improving in profitability and re-organising the company directly influenced this.
| Size of Company | No. of Co.'s | Last Year Co. Value | Latest Year Co. Value | Percentage Change |
|---|---|---|---|---|
| Less than £500,000 | 35 | £363,000 | £279,000 | - 23.06% |
| £500,000 to £1 million | 37 | £937,000 | £826,000 | - 12% |
| £1 million to £2 million | 26 | £1,660,000 | £1,923,000 | 15.87% |
| £2 million to £5 million | 52 | £3,467,000 | £3,606,000 | 4.00% |
| £5 million to £10 million | 44 | £7,069,000 | £6,444,000 | - 8.85% |
| £10 million to £20 million | 36 | £13,124,000 | £11,089,000 | - 15.50% |
| Over £20 million | 56 | £38,704,000 | £38,770,000 | 0.17% |
| Average | 286* | £4,844,000 | £4,730,000 | - 2.35% |
| Size of Company | No. of Co.'s | Last Year Co. Value | Latest Year Co. Value | Percentage Change |
|---|---|---|---|---|
| Less than £500,000 | 35 | £363,000 | £279,000 | - 23.06% |
| £500,000 to £1 million | 37 | £937,000 | £826,000 | - 12% |
| £1 million to £2 million | 26 | £1,660,000 | £1,923,000 | 15.87% |
| £2 million to £5 million | 52 | £3,467,000 | £3,606,000 | 4.00% |
| £5 million to £10 million | 44 | £7,069,000 | £6,444,000 | - 8.85% |
| £10 million to £20 million | 36 | £13,124,000 | £11,089,000 | - 15.50% |
| Over £20 million | 56 | £38,704,000 | £38,770,000 | 0.17% |
| Average | 286* | £4,844,000 | £4,730,000 | - 2.35% |
*Denotes number of companies filing full accounts
Table I Change in Company Value in the Metal Treatments industry
For the acquirer, it is perhaps companies that showed a decline in value that might be of most interest. For 164 per cent of these companies whose value declined, their average value dropped 28.9 per cent. Interestingly, Plimsoll found that 63 of these companies had gross margins above the industry average."Their fundamental business looks sound, yet costs seem to be higher than expected. Now may be the time to put in an offer," said Don Turkington, managing director of Plimsoll.
Obviously pricing a company is subjective yet this process does need a starting point. Choosing a company in the Metal Treatments industry is also a function of availability, as there aren't many players to choose from in any price range. If you want to buy or sell your company then the contenders are here to review.
Details available from Plimsoll Publishing Ltd. Tel: +44 (0) 1642 257800;Fax: +44 (0) 1642 257806; E-mail: plimsoll@dial.pipex.com;Website: http:\\www.plimsoll.co.uk
