Tuesday, 12 October 2010

Punch Taverns set to sell 1300 pubs - Which other operators will follow suit?

Punch Taverns has made the bold move of selling off the parts of its business that are no longer profitable. In the face of difficult trading conditions and falling profitability across the group, the board have taken the necessary steps needed to get their business back into good shape.

But Plimsoll has asked the questions - Which other operators need to follow suit and how many pubs will be lost as a result. The Plimsoll Analysis has picked out the following findings that point to the depth of the issues facing pub operators in Britain today:

- The average profit margin is down to just 0.4%
- 372 operators have posted a loss for at least 2 years running
- 265 companies have seen the value fall by over 30% in the last year

With so many pubs and their operating companies in difficulty it seems inevitable that the speed with which to good old British pub is disappearing will increase in 2011. The question is - which pub will be next?

Monday, 11 October 2010

How many of the UK's Public Sector Recruitment Agencies will survive 2011

Recruitment in the Public Sector is set to be hit particularly hard over the next couple of years as Government cuts really bite. As a result Recruiters servicing this sector are in for a very rough ride in the next few years.

With this in mind, market analysts Plimsoll have looked at how prepared each of the UK's 298 Public Sector Recruitment Agencies are for a difficult 2011. We looked at how each agency is currently performing and how resilient they will be in the face of a massive downturn in their market. Here's what they found:

- 75 are rated as Strong and are best placed to come through the next few years in tact

- 58 others are in dire trouble already and will be the first to fail when demand slows

- A marked fall in demand will accelerate consolidation in the market with
96 agencies exposed to takeover


Click here to see how Plimsoll's latest report will show you which UK Public Sector Recruiters could disappear in 2011 and who is set to survive

Friday, 8 October 2010

What effect will the Thomas Cook & Cooperative Travel merger have on the market?

The merger of Thomas Cook and Cooperative Travel is a further sign that there are too many companies chasing too little market.

This move will allow the new group to dominate a sector of the economy which analysts predict could be heading for another difficult year in 2011. Their ability to streamline operations, reduce cost and expand their collective reach on the High Street will see them dominate in a market where profit margins are still barely above zero and growth is uncertain. Sadly, there will be job cuts but on the whole its a positive move.

So how will this affect the rest of the market? There are still some excellent independent businesses in this sector. Companies like Southall Travel are a great example of companies that have performed well in recent years. However, if predictions are correct and demand remains subdued into next year how many of industry's weaker agents will be survive?

178 agents are already struggling and another bad year could see a bigger wave of consolidation. Who will be buying and who will be desperately selling?

Thursday, 7 October 2010

Liverpool FC - the start of a takeover tidal wave in British football?

Liverpool FC looks set to be bought out in the coming days but what about the rest of Britains football clubs - could we be set for a tidal wave of takeovers and maybe even further administration sagas?

Many of our treasured clubs are a house of cards - a web of shell companies, often based in tax havens that hide the true extent of the debt. Many owners, both foreign and home based, have gambled with the future of their clubs for either prestige, ego or personal financial gain.

Plimsoll has released a hard hitting report into the health and acquisition attractivenss of all the leading British football clubs and the results should act as a wake up call to the game and its boardrooms. Some of the eye opening findings include:

Many clubs are exposed to takeover and would struggle to repel potential suitors. Many need new owners to bring new capital and ideas into the business to get it back on an even keel

Over half of clubs have been given a Danger rating - they have aspects of their performance that should concern both the fans and the owners. Most of these clubs will struggle to trade their way out of the mess

Post your thoughts on the health of your club below:

Wednesday, 6 October 2010

After the collapse of Crown Currency Exchange - should consumers stick to buying currency from the bank or post office?

The collapse of Crown Currency Exchange this week highlights the dangers of operating in a speculative market whilst existing on wafer thin margins. Any fluctuation in exchange rates or other minor blips can spell disaster - the company has an inherent inability to respond to adversity.

Crown Currency Exchange was a high profile, heavily marketed business that existed on high volume transactions. It generally offered the best exchange rates in the market. However, for a company that processed £150m worth of currencies transactions in the last 5 years it had almost £200,000 worth of deficit in its shareholders funds. Clearly an unsustainable position.

With Plimsoll issuing a health warning for 22 Bureaux de Changes companies it begs the question - Should travellers forego the slightly better exchange rates and get their travel money from the bank or post office?

Click here to see Plimsoll's current assessment of the Bureaux de Changes industry

Tuesday, 5 October 2010

Which UK Food Manufacturer will sell out next?

With its famous brands seemingly in demand from overseas suitors, undercapitalization still prevalent and profit margins remaining squeezed, a wave of takeovers is set to change the UK’s Food Manufacturing sector forever.

The ongoing story of United Biscuits being courted by prospective new owners suggests that British brands remaining in high demand from major overseas players. Overall, UK based Food Manufacturers are facing weak growth and the prospect of a double dip recession. So, should UK based manufacturers be openly courting the attentions of buyers now to get the best value for their shareholders?

For example, should other major players such as Northern Foods (who posted their half year results today) also explore the possibility of attracting outside investment into the company to help it prosper in a difficult market?

93 UK based manufacturers would benefit from being taken over – Click here to find out who.

Monday, 4 October 2010

UK Food Brands - How many more will be lost to overseas suitors?

With news that Premier Foods is open to offers for Quorn (its meat free brand) as part of a debt reduction strategy, it poses the question, "Are UK's Food Manufacturers set to clean out their cupboards?"

Plimsoll has identified 153 of the UK's leading food manufacturers that need to to take urgent and radical steps need to be taken. With so many manufacturers in difficulty, there is a growing sense that we will see some famous brands changing hands as companies try to get debts back under control.

How many of these brands will be lost to overseas suitors is difficult to say but the recent flirtations between United Biscuits and Bright Foods seems to indicate a serious appetite for western brands among eastern groups. Plimsoll has also identified 93 other UK companies that are vulnerable to takeover. In many cases, whole companies will be acquired rather than just individual brands.

The latest Plimsoll Analysis has analysed the 500 largest Food Manufacturers in Britain and rated each one on its performance, likelihood of being taken over and what its future prospects are.

Click here to find out which companies could be bought out, those set to fail and those powering ahead