A new study has revealed that 297 companies in the UK fresh produce industry are worth one-third less than they were a year ago, in what is described as the 'clearest indication yet' of the damage that the recession has caused on the market.
However, the 'Plimsoll Analysis – Fresh Produce' report has also pointed to signs that a recovery is gaining traction, with 410 companies across the UK market actually increasing in value.
'It's certainly been a tough few years,' said report author David Pattison, who valued the top 980 companies in market as part of the study. 'Values have fallen markedly from their peak but the number of companies that are worth more this year than last is encouraging.
'In all we identified 410 companies that have increased in value – quite an achievement considering current market conditions,' he added. 'Their performance adds to the growing belief that the market has stabilised and companies with their house in order can once again prosper and add value.'
As with all recoveries, there are those that struggle to recover, as Mr Pattison points out.
'297 other companies have lost a third of their value in the latest year,' he said. 'They have such a lot of ground to make up and many are in such dire straights it's unlikely they will return to their former glory.
'The post-recession market is so highly competitive I would expect a number of these companies to be bought on the cheap or decline further and eventually be wound up.'
No comments yet