David Pattison, author of Plimsoll's new market report into company performance says, “More and more companies are making a loss for the first time in their history. Many can rightly claim to be victims of difficult trading conditions and thus a quick refocus on profitability will ensure this an isolated occurrence”
However, according to Pattison, overall conditions are no excuse for a band of serial losers - the 185 companies who are making a loss for the second and even third year running and who are simply selling at prices their businesses cannot sustain. He says: "They have put off making the painful decisions that more prudent companies made a while ago. No one wants to trim costs, lay off staff, cancel dividend payments and the like, but carrying on regardless is now unviable. They can no longer bury their heads in the sand”.
He continues: “I congratulate management teams that have made the often difficult and unpopular decisions. They have cut their cloth according to the market conditions and are all the more stable for it. Those failing to do so are running out of time and cash. Without a big increase in demand they cannot support their pricing strategy much longer. Watch out for a number of failures among the companies we have identified."
The new Plimsoll Analysis – Signs & Nameplates provides an intimate assessment of 727 companies in the market, which reveals which companies are pursuing a reckless strategy and who is getting it right. Visitors to GDC and Sign Directions magazine are entitled to a £50 discount. For further information contact Plimsoll at Tel: 01642 626400 and quote reference PR/CS71 or visit: www.plimsoll.co.uk