Bottom line focus could add £3.2billion profit - Embedded.com

Bottom line focus could add £3.2billion profit

London, UK — UK electronics manufacturers are said to be wasting £3.2 billion of profit every year due to blatant underperformance and a failure by company leaders to focus on the bottom line.

The latest Plimsoll Portfolio Analysis of electronics manufacturers indicates that over a third of companies are making a loss, 140 companies are losing money for the 2nd year in row and 50% of companies make less than a 3% return on investment.

The analysis looks at the individual performance of the top 1000 companies in the UK Electronics Manufacturers industry and also assesses their financial health. It examines the last 4 years' profitability of these companies, highlighting the winners and losers in this key area of company performance.

David Pattison, senior analyst at Plimsoll Publishing, said, “These figures show just how competitive the UK Electronics Manufacturers industry has become. The ability to make a profit is becoming the exception, not the norm”.

“Although in the minority, 235 companies delivered a 10% return on investment in 2003, proving that success is achievable within the industry. This is the level of profitability required to provide a good return to shareholders, pay for investment and help to ensure company longevity,” added Pattison.

A 'Profit Plan' identifies how each company needs to focus on its bottom line and make more profit. Using budgeted figures, the analysis shows that a staggering £3.2 billion million in extra profit could be created. The analysis identifies where improvements must be made.

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