| Industry
Overview This analysis of UK Wire Staple
Manufacturers is as at 28 July 2007. During the last 12 months the sector as a whole has
seen an overall rise in turnover for the whole sector. This continues the strong sales
growth seen for the sector over recent years, with the latest increase of 13.1% improving
on the 12.0% and 9.8% achieved for the last two years. However on this increase in sales
raw material and direct production costs have increased sharply throughout the sector over
the last 12 months. As a result Gross Margins have been eroded and Gross Profits have
increased only 2.9% on a 13.1% increase in sales.
Throughout the sector interest payments on long-term financing have risen over the last 3
years, although prevailing interest rates during the period will have had some bearing on
the most recent increase. Overall levels of borrowing within the
sector have remained fairly constant, with the Debt Gearing
ratio currently 43.1%. Operating costs have remained
constant, as has other income. Overall profitability has increased, although Profit Margins have declined as a result of
overheads having increased more than the |
