A small group of elite companies in the fresh produce industry in the UK are leading a sector recovery according to the latest analysis from Plimsoll Publishing.
Plimsoll’s report finds that the top 100 companies in the UK fresh produce industry are enjoying a dominant position in the market accounting for 75 per cent of the total fresh produce sector up from 70 per cent four years ago. “As a group they are gaining more control of the market, but look within these leading players and it is clear that a minority of 25 companies are responsible for this tightening grip,” said David Pattison, senior analyst at Plimsoll. In the last four years these top 25 have increased sales by 58 per cent, profits by 88 per cent and staff levels by 32 per cent. The comparison with the other 75 of the top 100 firms is stark: in the last four years, their sales have not increased, their profits are unchanged and staff numbers have grown by only seven per cent.
“The top 25 are setting themselves apart from the other major players who look tired by comparison,” said Pattison. “You don’t pull in financial results like this, over such a length of time by accident. They are telling us something about the direction of the market, a sort of elite resurgence.”
Plimsoll’s analysis provides a plan for moving each of the companies forward based on their financial performance. It looks at each of the top 100 companies and categorises them into three business scenarios. Pattison said that the 25 companies already in an excellent position are primed for a period of growth and Plimsoll’s expansion plan puts their future market share beyond their current performance.
The 64 firms in the middle category have their work cuot out to get their business on a firm financial footing and Plimsoll demonstrates a strategy to show how they could double their value in a year. Meanwhile, 11 companies in the top 100 are facing financial distress. “Their safest option is a period of consolidation where up to 900 jobs could be lost,” warned Pattison, adding that this is essential if they are to come to terms with their latest position in the market.
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