Fluid handling: profit or loss

Stockton On Tees, UK — While the majority of UK fluid handling equipment makers are achieving strong profitability, around a third of these companies are struggling to break even, says a new market report from Plimsoll Publishing.

According to the survey, a third of the 950 manufacturers are going through lean times with an average return on investment of –14%, down from –7% last year. Moreover, 25% of companies reported a loss for the year, with around 50 reporting a negative result for the second year in a row.

On the other hand, Plimsoll found that for two thirds of the 950 companies surveyed the average margin and return on investment are running at 69% and 20%, respectively. Some 16 of the best performers are into their fourth consecutive year of growth, the report added.

The two-tier picture confirms earlier Plimsoll research, which showed 159 UK fluid handling equipment makers in “danger” and another 180 companies getting a “caution” rating. This contrasted with 379 and 95 companies, respectively, generating “strong” or “good” profitability.

“We are seeing from these numbers just how tricky the recent trading period has been for companies to return to profit and how many are really struggling. Yet at the same time over two thirds of companies assessed seem untouched by recent cost increases and competitive pricing,” said David Pattison, Plimsoll senior analyst.