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Industry reports - Heather Hobbs

Sep 14 2010 Comments 0

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Growing performance gap in the UK Scientific & Laboratory Equipment industry

There is a real mixed bag of company performance in the UK Scientific & Laboratory Equipment industry at the moment. New research from market analysts Plimsoll indicates that with 80 companies in trouble, 377 others powering ahead and a further 102 set to be taken over, the market has never been more fragmented.

David Pattison, author of the new Plimsoll Analysis - Scientific & Laboratory Equipment explains, “Having rated 80 struggling companies as Danger and given 377 others a Strong rating, I am surprised at the gulf in performance in the market. Despite all other factors, success still comes down to how well a company is run”

When pressed on what the consequences of this polarisation in the market will be, Pattison’s response is emphatic, “Acquisitions. The market, in the current economic climate cannot support this many companies. There has to be further, more radical consolidation in the market. Strong companies will be buying up distressed competitors in the next 12 months”.

Plimsoll analysed the top 683 companies in the market and the following is a regional breakdown of how many have been rated as Strong, Danger and/or exposed to takeover by region, in the new Plimsoll Analysis:

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