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[September 2003]
Financial Performance Report on Major UK Ceramic Manufacturers
A recently published industry report - 'Business Ratio - Ceramics Manufacturers' - that examines the financial performance of 106 leading British ceramic manufacturers reveals the top ten most profitable companies by pre-tax profit margin for the last complete financial year available, 2001/2002.
The table is led by one of the smallest companies to feature in the report (which only looks at 500,000+ turnover companies), Taylor Tunnicliff, with an impressive pre-tax profit margin of 43.3%. This is five times the report-calculated industry average result of 8.6%.
The turnover band of the top 10 most profitable companies in the report, published annually by The Prospect Shop, varied between 600,000 and 38.1 million and includes a number of the smallest companies to feature in the entire report. The publisher says this can only highlight the fact that companies with the highest turnover do not always yield the highest margins.
Covering the previous three full accounting years available - in this case from 1999/2000 to 2001/2002 - the report provides individual company and sub-sector analysis in addition to performance averages for the industry as a whole. The subsector breakdown for this 30th edition was 31% refractories; 22% earthenwares; 18% industrial ceramics; 12% porcelain/fine china; 10% tile manufacturers; and 7% sanitaryware.
Leading the overall turnover table was The Morgan Crucible Co PLC with a turnover of 1.0245 billion and a pre-tax profit margin of 2%, with compound growth registered in the report period of 9%. Moving from top to bottom, the others in the turnover top ten were: Waterford Wedgwood UK PLC; American Standard Plumbing UK; Royal Doulton PLC; Josiah Wedgwood & Sons; Quinn Group; Twyfords Bathrooms; Royal Worcester & Spode; H&R Johnson Tiles; and Churchill China UK.
Of this group of high turnover companies, not one managed to equal or exceed the industry average profit margin and six of them reported negative pre-tax margin results for 2001/2002.
Sales growth results for the largest companies were overall much better. Four out of the ten companies managed to achieve a compound sales growth rate equalling or exceeding the report calculated industry average result of 3%. American Standard Plumbing UK experienced the highest sales growth rate of 42%, followed closely by Quinn Group with a sales growth rate of 39% for the three-year period under review. Four companies actually reported a contraction in sales growth.
The report is available at a cost of £279.95 delivered. Telephone: +44 (0)20 8481 8720
ENDS