The Plimsoll Analysis-Golf Courses & Clubs, published in June, prompted a backlash in the UK golf courses & clubs industry. Having found that a record number of golf courses & clubs companies are on the Danger list, 1141 jobs could go, and up to a third of golf courses & clubs firms are at risk of failure under a prolonged slow down in the UK economy, the news was hardly welcome. In response to this, Plimsoll has produced an updated study to incorporate the very latest figures and bring the picture right up to date.
Feedback Plimsoll received from the original publication was that in general, companies were not experiencing too much difficulty in retaining sales. This is borne out in the updated analysis that puts current market growth at a respectable 3%. Note however this is down from the previous year’s 5%. 636 of the 846 companies analysed are holding or increasing sales on last year.
However this headline hides some worrying trends:
• 47%% of companies are currently selling at a loss
• 58%% of the 846 companies are making less profit than last year.
• Despite the alleged slow down in lending, 243 companies are in more debt now than they were 12 months ago
• 418 companies are currently rated as a high risk of failure in this updated analysis.
Clearly, whilst sales in the market continue to grow, albeit at a slower pace than last year, this buoyancy is distracting some directors from other areas of the business which require urgent attention.
David Pattison, senior analyst on the project, comments on economic trends in the UK golf courses & clubs market, “The reality is, sales teams are very rarely privy to the full picture. All too often, they are unaware of the costs of overheads, the levels of debt and how their sales add up in profitability. The latest figures do seem to suggest that the focus has switched from profit to sales, as companies grab business almost at any cost! The old adage has never been more apt, ‘sales for vanity- profit is sanity.”
Pattison continues, “The Plimsoll Analysis is a tool for measuring the current economic risks, as it allows companies to understand their market and their competitors better. In such stretched economic conditions, companies need to assess and understand who is a long term threat in the market and which companies are following an unsustainable strategy. This knowledge could be the difference between spotting a potential acquisition at a bargain price- and becoming one.”
The full updated Plimsoll analysis allows you to see how the UK’s top 846 golf courses & clubs companies will cope with this unkind market.
This special edition of the Plimsoll Analysis- Golf Courses & Clubs lists all the names, details and financial performances of the UK’s leading golf courses & clubs. It also includes a future snapshot on each company demonstrating how each might survive this period of consolidation. It names those companies that are placed to gain the most and those that need to retreat or sell up.
Copies of the analysis can be obtained for £350, by calling Clair Sherwood on 01642 626400 or emailing c.sherwood@plimsoll.co.uk Readers of GBN can obtain a 5% discount on request.
Plimsoll www.plimsoll.co.uk