Plimsoll Publishing has produced an updated version of its analysis of the UK scientific and laboratory equipment industry in response to feedback from its original research.
The updated analysis revealed that current market growth is seven per cent and 527 of the 775 companies analysed are holding or increasing sales on last year.
However, Plimsoll warned that the headline figures hide worrying trends.
It revealed that current market growth is down from the nine per cent seen last year, and that 25 per cent of companies are currently selling at a loss.
It also showed that 45 per cent of the 775 companies are making less profit than last year and 141 are currently rated as a high risk of failure.
David Pattison, senior analyst on the project, said while sales in the market continue to grow, albeit at a slower pace than last year, the buoyancy is distracting some directors from other areas of the business which require urgent attention.
He said: 'In reality, sales teams are very rarely privy to the full picture.
'All too often they are unaware of the costs of overheads, the levels of debt and how their sales add up in profitability.
'The latest figures do seem to suggest that the focus has switched from profit to sales, as companies grab business almost at any cost.
'The old adage has never been more apt, "sales for vanity - profit is sanity".' The analysis was updated following industry feedback on the original study, which revealed that a significant number of jobs and companies could be in danger.
Pattison added: 'The Plimsoll Analysis is a tool for measuring the current economic risks, as it allows companies to understand their market and their competitors better.
'In such stretched economic conditions, companies need to assess and understand who is a long-term threat in the market and which companies are following an unsustainable strategy.
'This knowledge could be the difference between spotting a potential acquisition at a bargain price and becoming one.'
