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The most successful debt collection agencies companies have been named as part
of a special study by industry analysts Plimsoll Publishing Ltd.
The companies have been grouped into 5 different areas of financial success.
Best overall financial performers
Included in this section are the companies considered to be getting the balance
right between commercial and financial success.
They are managing to increase sales and maximise profits, without compromising
financial strength.
David Pattison, Senior Analyst on the project, commented: “The rest of the
industry should be falling over themselves to do business with these companies”.
Best sales improvement
With the market growing at 13.5%, the majority of companies are, at best,
showing modest growth.
The 21 companies named in this section are delivering a minimum of 14% growth in
the last period.
Pattison is convinced these companies will cause increased pressure in the
market in 2007 as they build on their aggressive business strategy, adding:
"These companies are in danger of taking the industry by storm”.
Profit improvement
With profit margins in general depressed, it is refreshing to see 7 companies
clearly benefiting from tighter cost control and pricing policies.
They have been able lift their margins from previously loss making to a current
16.6% on average, well above the industry’s current 7.9%.
Pattison continued: “For me profits are the key to a successful company.
"As the saying goes, anyone can give the stuff away but the real skill in
business is to make a profit”.
Turnaround in financial performance
It is the nature of business that most companies in their lifetime will
encounter a difficult trading period. Some, during this time will fail or be
taken over. Others find a solution themselves. Named in this section are the 7
companies who were facing an uncertain future.
These ‘comeback kings’ have staged a recovery, and the first stage of the
turnaround process is underway.
Pattison explained: “These 7 turnaround companies are proof that failure is
avoidable.
"They offer encouragement to 56 other debt collection agencies companies that
have seen a sharp decline in their recent financial performance.
"Trading out is an option, if problems are addressed quickly.”
Productivity improvement
Showing how vital productivity is becoming to remain competitive in the
industry.
Five companies are named in this section. They are using their staff to deliver
21 times the sales and 24 times the profit of the rest of the industry.
Pattison concluded: “As wages and employment costs in general prove an
increasing burden, lean companies like these are discovering new productivity
levels to combat this problem”.
Copies of the analysis are available for £350 from
www.plimsoll.co.uk, calling
01642 626400 or by email c.sherwood@plimsoll.co.uk
Source:
Credit
Control Journal
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