The fresh produce industry in the UK may finally be turning a corner with signs of sustainable improvement revealed by Plimsoll Publishing in its latest portfolio analysis.
The reports analyses the performance of the top 1,000 companies in the sector and assesses their financial health. It found that 131 companies have seen sales increase by more than 15 per cent. Some 159 companies have doubled profits and 191 companies have halved their debt.
"There are enough companies doing well to call it a glimmer of hope for the industry," said Plimsoll senior analyst David Pattison. "These numbers are encouraging as they show businesses are being more alert to their surroundings and are in control of their positions, looking at what returns they need to make. There is an element of stability within the industry which is helping businesses to get their costs under control."
And this is in spite of the takeover of Safeway by Morrisons as businesses learn to diversify successfully and the catering trade becomes an increasingly important client for many.
But those that are doing well are doing so at the expense of others. "We are seeing competitive behaviour in the marketplace," said Pattison. "The winners are hastening the problems for the other companies."
The report found that despite improvements in the industry, some 233 companies still have declining sales and 123 companies are loss-making. "Our latest analysis shows that how successful you are in the industry has little to do with what you make or sell, it all comes down to how well the company is run," said Pattison.
The report is available from Plimsoll on 01642 626400. Freshinfo readers receive a five per cent discount on mentioning this article.
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