Computer software industry analysis.

A new publication by industry analysts Plimsoll Publishing into the current financial state of each of the Top 2000 UK companies has revealed four distinct profiles of company behaviour. Each of the 1000 companies analysed were assessed on their sales and profitability in their last 2 years trading. The results revealed that:

* 5% are at most risk as they are already affected, seeing a slow down in the market. Both sales and profits have fallen in the last period.

* 36% are doing well and seem unaffected, showing no signs of recessionary behaviour. Both sales and profits have increased in the last period.

* 20% are showing signs of caution. Whilst profits have improved, sales have declined in the last period.

* 19% seem intent on capturing market share whatever the cost. Whilst sales have increased, profits have fallen in the last period.

Comment:

I think the game of blame the industry will start soon. It's an ideal time to rush any bad news out and managers can use talk of a recession to cover up problems that go back years. The reality is there is a lot of success out there and these struggling companies are simply being outplayed by the competition. A full list of the companies included can be obtained from plimsoll.co.uk