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Lost profit costing contractors 'billions'

Latest research into the UK civil engineering contractors market shows that a staggering £1.6bn worth of profit is squandered each year.
A new report from market analysts Plimsoll has found that 740 companies in the market would make more profit if they were taken over.The report finds that:- 12% of companies are making a loss - 6% are losing money for the second year running - 7% of companies made less than 3% return on investmentThe findings suggest that 740 of the 1,000 companies covered would make more profit under new ownership, resulting in £1.6bn extra revenue in the industry as a whole.Senior analyst on the project, David Pattison, said: 'These results prove just why the civil engineering contractors industry is currently hot with takeover talk and speculation about future ownership.It's certainly no surprise that trade buyers and private financiers are taking a close look at the industry - some of these civil engineering contractors businesses have huge potential that is not being realised at the moment. We've heard a lot about private equity firms recently, and this is one industry where they could reap rich rewards.

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