Over a third of Employment Agencies companies still reporting a struggle with profitability

Over a third of the UK’s Employment Agencies companies are struggling to barely break even, whilst the almost two thirds are delivering outstanding returns, says a new study published by industry analysts Plimsoll Publishing Ltd.

The research has looked at the financial performance of each of the Top 2000 UK Employment Agencies companies and has analysed their latest profitability figures. It found a great discrepancy in the level of profitability and a worrying trend for the majority of the companiesí analysed. Just a few of the facts extracted from the analysis are.

Over a third of the 2000 companies averaged only a -0.5% pre-tax profit margin; this is down from last year when the average was 0.1%.

The owners of these companies are going through lean times with an average return on investment of only -9%, falling from 0.7% last year.

Over one in five of Employment Agencies companies have reported a loss for the year, for 21% of these companies this is now their 2nd year of loss making.

David Pattison senior analyst comments, ìWe are seeing from these numbers just how tricky the recent trading period has been for companies to return a profit and how many are really struggling. Yet at the same time almost two thirds of companies assessed seem untouched by recent cost increases and competitive pricing. They have been able to record fantastic resultsî. Davidís view is supported by facts from the analysis.

Almost two thirds of the 2000 companies make 63% margins on average, this is nine times the profit for a struggling company.

The owners at these winning companies are enjoying a period of feast, averaging an 41.8% return on their investment.

16 highly profitably companies identified in the analysis are enjoying their 4th consecutive year of profit growth.

David Pattison continues ìlosing money might not be a complete disaster for your company, but it is likely to cause long term damage as your investment is constrained and your ability to retain staff becomes compromised. These companies may well find that they will not be able to keep pace with those companies who have the profits behind them to finance investment.î

The full 2410 paged analysis contains a detailed analysis of each of the 2000 companies. It is aimed at anyone with a commercial interest in the UKís leading Employment Agencies companies. Whether these are your customers, suppliers, or competitors how many are now at a commercial disadvantage in the market and are jeopardising their long term prospects?

Copies of the analysis are available for 350 from Plimsoll Publishing Ltd by email to c.sherwood@plimsoll.co.uk or by calling 01642 626400. Readers can receive a 5% discount when ordering.