283 lighting firms have been found to be weakening or are in poor financial health in a new survey designed to health-check the industry in the wake of the UK’s decision to renounce the European Union. The challenge posed by Brexit will be discussed by Paul Beale of Electrolight at this month’s LuxLive.
Market analysts Plimsoll Publishing carried out a financial health check on all of the UK’s 925 top lighting firms and found that 92 companies were showing signs of weakness and were in need of early prevention measures. A further 191 firms were rated as being in danger and were showing a serious weakening in financial health, requiring aid.
Economic insecurity has clouded around the British economy since the June EU vote, a state of affairs that is only likely to worsen after the victory of President-elect Trump in the United States, however the majority of lighting firms do seem to be forging a steady course.
Firms rated as in danger have two options: they can hold their nerve and hope to trade their way out, or they can put a survival plan in place and look to consolidate their business.
451 firms were rated as ‘strong’ in the survey and were found to be showing strong financial health, while 78 firms were rated as ‘good’ showing improving financial health and an aspiration to be rated as ‘strong’ in the future.
92 firms were rated as ‘mediocre’ and could face an uncertain future if the worst case scenarios about Brexit come true and a recession materialises.
‘Nobody at this early stage will know the consequences of the Brexit vote, however, companies who are rated as in danger have two options: they can hold their nerve and hope to trade their way out, or they can put a survival plan in place and look to consolidate their business. Once you take notice of the warning signs, then directors need to act,’ Plimsoll’s senior analyst, David Pattison commented.
To create the rating system the study looked at vital areas of business performance and applied them to lighting firms in order to judge their overall health. These factors were then applied to the UK’s 925 lighting companies in order to highlight the fittest and those showing signs of serious financial weakness.
‘Since the decision to leave the European Union, the market has been dogged with speculation and uncertainty. However our latest research suggests the majority of Lighting firms are surprisingly well placed. Having said that, however, that’s not to say there will not be an impact, but they are in good shape to cope and respond to any upheaval,’ Pattison concluded.
‘Lighting and Post Brexit Britain’ will be discussed in the Lightspace Arena by Paul Beale of Electrolight. The talk will consider what challenges will be created for the lighting industry as a result of the United Kingdom’s historic vote to leave the European Union and what Brexit means for lighting manufacturers and the design sector. LuxLive will take place in London on Wednesday 23 November and Thursday 24 November 2016. Registration is free and you can find out more here.