11 February 2005 – Stockton (UK): According to a report from research company Plimsoll Publishing, acquisition activity is set to increase in the UK office equipment industry this year.
The new study highlights 202 cash-rich companies that are ideally placed to enhance their earnings by acquiring a competitor. 126 companies, large and small, have been identified as their possible targets, each one showing signs of financial stress.
Senior analyst David Pattison said: "These under pressure companies are running out of options. As the average industry profit margin is only 1.2 per cent, and over half of companies are failing to increase sales, trading their way out of their current position will be almost impossible. With so many cash rich companies operating in the market, selling up might be the only sensible option left."