The gap between the best performers and the rest in the fresh produce industry is widening, the latest Plimsoll Publishing report has found in its analysis of 150 leading players in the sector.

Coming out on top, 25 of the UK’s largest fresh produce companies have been named as best trading partners in a brand new publication by industry analyst Plimsoll.

These 25 companies are getting both their commercial and financial performance right. They are delivering measured profitability and manageable sales growth while keeping any debts under control. Companies such as AG Thames Holdings, KG Frutis and Flamingo (UK) all figure in this section.

David Pattison, Senior analyst at Plimsoll said: “These are really the companies you would do well to have as customers or be doing business with. If you are looking to see how a fresh produce company should perform, then look no further than these 25 great businesses.”

Other exceptional company performers include 25 aggressors. The businesses in this category have achieved an average 83 per cent sales growth compared to 7.4 per cent for the industry last year. As a group, they have increased sales by over £239 million in the last year.

The 25 most profitable companies have averaged 6.6 per cent margins compared to the industry normal of 1.7 per cent. They benefit from a combination of good cost controls and low debts, hence low or zero interest payments.

Meanwhile, the 25 most efficient boast figures such as £623,000 sales per employee, and these companies are proving the traditional benchmark of £267,000 in sales per person to be dated. They have set new standards of productivity for others to follow.

Yet these exceptional companies do not reveal the full industry picture. For many of the companies included in the full analysis, results have not been so encouraging.

This latest report includes sections highlighting companies that are falling behind. For example eight are losing pace and losing out in the market while they suffer financially. Typically sales at these firms have fallen by 9.4 per cent and they are losing money. They are also showing signs of financial weakness.

There are five companies showing serious signs of financial strain. Typically, debt levels are high and they are already at risk of failure. A further four companies are all losing money but are potentially desirable to own as they have high earning potential.

Each has been given a future business plan by the Plimsoll authors to demonstrate how new owners might turn performance around.

Three companies are capturing market share at cost by funding their growth with debt. Whilst the risk associated with this strategy is high, there can also be a serious short term disruptive effect in the market.

“I think what this analysis is proving is the widening gap between these leading companies. There are some terrific performances out there mixed in with some very disappointing ones. The difference is blatant.”

Copies of the full 420 page analysis is available from Plimsoll Publishing Ltd priced at £500 by visiting www.majorcompanies.co.uk for further details. freshinfo readers can request a five per cent discount when ordering.

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