Plimsoll: 45 UK Companies Will Finish 2009 in Difficulties

At the end of a turbulent 2009 analysts of Plimsoll are predicting 45 UK tyre manufacturers and distributors will be struggling to see 2010 out: “Having clung on through the bad times many of these struggling companies are going to run out of time and fail just before the recovery really takes hold. Sadly, some of them are just too weak to carry on and there will be a spike of failures in the New Year. On the flipside, their demise will bring a welcome reduction in competitive pressure for those left”.

Pattison is convinced the market is due a prolonged period of consolidation with the number of companies in trouble leading to heightened takeover activity. He explains: “With too many companies chasing weakened demand it is inevitable that there are likely to be a number of high profile mergers and takeovers. In all honesty it’s long overdue. Once demand started to flag it was inevitable companies would be caught out. This period of consolidation is needed to sort out the dead wood. We have named 21 companies as the best acquisition prospects in the market”.

Summing up, the new 2010 edition of the Plimsoll Industry Analysis shows a buffeted market emerging from recession with a third of companies making a loss and 1 in 3 companies in financial difficulty but as Pattison insists “If you are going to make a success of 2010, you need to learn the lesson of 2009. There are going to be big changes in the UK Tyre Manufacturers & Distributors industry with lots of takeovers, a number of high profile failures and even the odd surprise or two along the way”.

Tyrepress.com readers can get a £50 discount off the full report if they call 01642 626400 and quote reference PR/AA10.