In the publishing company's latest study – its third edition for 2002 – which analysed the top 1,000 businesses in the industry on their financial standing over the last four years, 347 companies fell into the lowest rating category: danger. 'I believe the fresh produce industry has too many companies chasing too little market,' said Plimsoll senior analyst David Pattison. 'These companies rated as danger have been in decline for years with a combination of increasing debts and low margins. Many of them are at a stage where their debts are severely restricting the ability of the management to make even normal business decisions.' The good news for fresh produce, said Pattison, is that 317 companies are rated as strong with less debt, stronger balance sheets and average margins of 3.9 per cent. A further 87 companies scored a good rating averaging 2.1 per cent in pre-tax margins.

The study is available from Plimsoll on + 44 (0) 1642 626400 for a five per cent discount when mentioning this article.