The outlook for shareholders in the UK leathergoods retail industry looks bleak, with only 11 of the top 63 largest companies delivering a good return on investment. This is according to the latest Top 63 Analysis – Leather Goods Retailers by Plimsoll Publishing Ltd. The Top 63 companies, who constitute 96% of the market, have seen organic growth plateau. As a result they are increasingly looking to capture market share from their competitors. This is creating intense competitive pressures amongst the leading players, resulting in the following alarming statistics:
52 companies are under-performing, delivering less than a 10% return on investment . The average return on investment for these 52 companies is a mere £-0.27 per £100 invested. 23 of these companies are loss making, with 13 suffering a loss for the second consecutive year.
David Pattison, senior analyst at Plimsoll Publishing Ltd, comments: ‘Shareholders are the unfortunate victims of unfavourable conditions at the top of the market. I am surprised at the number of leading companies failing to deliver the accepted investment benchmark of a 10% return. Directors of these companies would do well to remember their accountability and commitment to their shareholders.’ Pattison continues: ‘Success is achievable at the top. 11 of the major leathergoods retailers are bucking this market trend by delivering an average 28.2% return on investment. Tura Import and Export Ltd are one great example of a company delivering to its shareholders.’
Plimsoll’s newly launched Top 63 – Leather Goods Retailers examines each company’s performance and financial health. The 2 paged analysis for each company now includes a valuation, a 12-month projection of future performance and a complete set of rankings, ratings and industry ratios. Ideal for shareholders and key company decision makers alike, this 222 page analysis is now available for £500 by calling Plimsoll Publishing Ltd on +44 1642 626400 or visiting [http://www.majorcompanies.co.uk]
