UK Tyre Companies See Values Increase

Overall values of the UK’s 50 leading tyre companies are on the up, rising 10 per cent in the period studied by a new Plimsoll Publishing report. 35 of the companies included have seen their values increase by a staggering 20 per cent. This is a direct result of improved profitability and a conscious effort by their managers to place their company’s on a firm financial footing. These companies are building a solid foundation to further enhance their values in 2007, the report says.

Sadly, not all of those valued in the study have prospered, as 14 of the companies have seen their value fall, on average by –10 per cent. 1 of the largest UK tyre manufacturers and distribution companies have seen their values plummet, falling by 50 per cent in the review period.

To give some detail to the valuations, the 155-paged study includes a critical assessment of each of the 100 companies’ strengths and weaknesses. David Pattison Senior Analyst at Plimsoll comments: “In the study we have taken a long term view and looked at each of these companies over the last 4 years. No wonder there is so much acquisition speculation in the market when the valuations change so rapidly from year to year.”

Those looking to expand their businesses are sure to find the acquisition application of the analysis useful. David Pattison goes on, “There are 5 companies that really stand out in the analysis for their classic acquisition potential. Blatantly undervalued, they have the potential to double in value, if staff costs, debts and other expenses are brought under better control. These companies are likely to attract interest from private equity predators as well as industry buyers amongst the 50 largest companies.

Copies of the publication are available for £500 by calling 01642 626400 or visiting www.plimsoll.co.uk. Tyres & Accessories readers can take advantage of a 5 per cent discount when ordering on line by quoting the code PRO1 at the checkout.