Nobody ever thinks they will be responsible for a failing company. However, itís a harsh reality of business that some of you reading this are working at, or will know of, a company that is heading for failure. In fact a recent study into the UKís Top 2001 Employment Agencies businesses suggests that up to 192 - 10% of the companies in the industry are at a high risk of financial collapse.
The financial performance of each company has been researched and the full study includes an individual analysis and overall financial score for all 2001 entries. It names 192 companies rated as ìDangerî. They are suffering from low and declining margins and uncontrolled rising debts. Their position is now so serious that even normal business decisions are becoming constrained.
David Pattison, senior analyst on the project, maintains.
ìThe simple message is change or risk failure. At these high risk companies, the managers need to act quickly to get their firms back on a decent financial footing. It seems inevitable that we will see a period of consolidation. Job losses and certainly cost cutting are essential if these companies are to survive. Personally, I would not rule out a series of takeovers. Most of these companies are blissfully unaware of how exposed to acquisition they are.î The analysis is aimed at the non-financial manager who needs to be alerted to changes in the financial performance of Employment Agencies companies, whether they are customers, competitors or suppliers. If your business relies on their business, it is vital you understand their financial position.
The full 2351 paged study, priced at 350, is a comprehensive guide to the financial health of each of the 2001 companies. Copies are available by calling 01642 626400 or by emailing m.aston@plimsoll.co.uk
Change or face failure
Thatís the warning to 192 of the UKís top 2001 UK Employment Agencies companies
