A new study by industry analysts Plimsoll Publishing looking into the financial state of the UK Construction industry has, despite the UK recession, awarded 343 of UK’s top 1000 Construction companies a strong financial rating for their outstanding financial performance.

Plimsoll has rated each of the UK’s largest 1000 construction companies into one of five ratings based on their overall financial performance. Ratings have been given as Strong, Good, Mediocre, Caution and Danger.

Rating          No of co’s          % of companies          Definition

Strong         343                      34%                                Delivering excellent performance

Good          206                       21%                                Holding a respectable position

Mediocre    209                      21%                                 Needing improvement

Caution      101                      10%                                 In a weakened financial position

Danger      141                       14%                                Their survival is now in question

David Pattison, Senior Analyst at Plimsoll, has the following view on the findings “It was no real surprise to see the high number of companies on the Danger list, given the current economic crisis affecting the construction industry.

However we were very surprised to see the high number of excellent businesses making it on to the strong list. I think these firms have really upped their game in these difficult times and they are concrete proof that necessity is the mother of invention.”

During the latest financial year analysed, these 343 strong firms have boasted the following impressive performance statistics.

Sales growth

On average these firms have seen sales increase by 9.9%. This figure is an impressive statistic in a market which is generally flat. This demonstrate the strongest players’ ability to take market share from their rivals

Profit margins

For the strong companies, their profit margins are sitting at an average of 8%, as they have cut costs and used competitive buying to increase their bottom line.

Levels of debt

Debts have all but been removed from these companies. Most are operating completely debt free, thus reducing their reliance on the banks and other lenders.

Efficiency / productivity

Big improvements in efficiency means these firms are now delivering over £204,000 sales per employee compared to others in the industry that struggle to deliver £192,000. This gives them a significant competitive advantage.

Pattison continues, “Obviously there are real concerns over the 242 firms rated as Caution and Danger, their futures look extremely uncertain. Their management are now operating under severe financial pressure where even normal trading is proving hazardous. Many of these firms seem likely to be sold off; they are at an extremely high risk of failure unless they turn their performance around fast.”

This special edition of the Plimsoll Analysis offers a unique insight into the changing financial performance of UK’s leading Construction companies. Each firm has been named, analysed and rated based on their latest financial performance.

Copies of the Plimsoll Analysis- Construction can be obtained for £350 by calling Clair Sherwood on 01642 626422 or emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it .