A total of £145m is wasted each year by heating contractor firms, according to recent research.
A report by Plimsoll revealed 739 of the 1000 companies researched would make more profit, equating to £145m for the industry, if under new ownership.

Poor management was blamed as the cause of the lost millions.

'These results prove just why the heating contractors industry is currently hot with takeover talk and speculation about future ownership', said David Pattison, Plimsoll analyst.

It's certainly no surprise that trade buyers and private financiers are taking a close look at the industry-some of these heating 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'.

The report highlights areas where firms are falling short and looks at ways firms can pull up their financial socks and realise hidden potential.

Reduced borrowing and removing unprofitable sales are two steps recommended by the report. Other steps include assessing unnecessary stock levels, controlling trade debtors to free up cash, reducing borrowing and reviewing productivity to ensure sales per employee are at least £100,000.

The report is available to order. To claim a 20% discount on your copy of the report email c.sherwood@plimsoll.co.uk and quote the reference PR07.