The latest Plimsoll financial analysis has some unwelcome news for those involved in the UK Computer Software industry. Overtrading appears to be affecting the industry as 737 significant players chase sales at the expense of profitability. Whilst the behaviour of these overtrading companies has yet to impact on all of the 2000 companies in the industry, ahnost half have seen their profitability decline. There are three distinct types of company behaviour now prevalent in the industry.
424 companies hardly break even. Typically these companies exist on tight and declining margins. Can they remain competitive whilst being squeezed by those overtrading?
As yet unaffected
839 companies are as yet unaffected. Typically these companies have remained...