Interesting issues tackled within the study include:

The age of the owners. A third of directors are now over 60-years-old.

The direction of the market. For 37% of companies, sales did not keep pace with inflation.

The pressure on profitability because of rising costs. Some 75% of companies suffered a fall in profitability.

Succession management. Next generation involvement in the industry is an issue at the 29 companies incorporated before 1970.

Some 30% of directors are under 50-years-old, evidence of the new blood that has entered.

A total of 20 companies have improved sales by 15% or better in the last three years.

Some 49 companies have increased profitability in the last year.

A total of 77 companies are new to the industry, established in the last 10 years. Of these, 12 now have sales above £5million.

    David Pattison, senior analyst at Plimsoll commented: “This effective two speed industry is forcing some to feel like the market is in decline and that selling up or merging is a great way to save the company.”

    He added: “On the flip side, the other companies grabbing all the growth and profit see an acquisition as a great way to continue their march into the market.”

    As well as a full individual analysis of each of the UK’s top 200 companies, two separate studies analyse two distinct types of company. These analysed the 92 “buyer” companies and the 86 “seller” companies.

    The “buyer” companies are the best to consider, Plimsoll said, if you are looking to sell your company or merge. They all are showing great financial strength and could all afford to a buy a company or make an investment in another company.

    The “seller” companies are the best to consider, Plimsoll said, if you are looking for a company to buy. They are likely to be amenable to an approach as many are losing money.

    Nine companies are losing money for the second year in row. Yet in the analysis, each of these companies was provided with a projection that sees them returning to profit inside 12 months. These projections prove, according to Plimsoll, that given the right investment and cost reductions, they could all be profitable businesses.

    Copies of the 366-page publication, along with the additional buyers and seller’s analysis, can be purchased by calling Plimsoll Publishing Ltd on +44 (0) 1642 626 400, or by emailing m.aston@plimsoll.co.uk. Printed copies are available for £350; PDF versions are priced at £400.