The objective of the Plimsoll Model is to give busy managers a casual assessment of the industry they operate in or their company. It investigates sales growth and financial health.
According to 2011 Plimsoll analyses, the sales performance of companies in the translation industry in the UK alone varied significantly in the last 10 years. Combined growth was 88.4%. Large corporations generally have a more regular trend; whereas small companies are prone to greater fluctuations.
Currently, almost half of the companies analysed recorded a fall in sales with an average fall of 9%. However, the difference in sales growth between individual companies was dramatic. Over half of the companies recorded an increase in sales, with an average increase of 18%. Half of the companies recorded a sales growth between 13% and -13%. In general, the larger companies are growing at 11.6% growth, compared to the smaller companies who are declining by 3.0%.
In the last 10 years, gross margins (gross profit expressed as a percentage of sales) have remained fairly level. Yet remarkably the gap in the levels of gross margins has also remained steady.
Half of the companies considered increased the actual £ value of their gross profits in their latest year of accounts. In general, the smaller companies are outperforming their larger counterparts. The average gross profit margin of a smaller company is 54.3% which outperforms their larger counterparts who manage 39.3%.
We are a team that takes every translation we do to heart, so that we always provide our clients the best quality and a quick turnaround. Ask SanTranslate.