Nearly half of fresh produce companies are facing mounting debts - and are oblivious to warning signs, according to an analysis by industry specialists Plimsoll Publishing.
The survey showed that 222 of the 500 businesses analysed are in more debt now than they have been over the last four years. And the debts of 66 companies are already impacting on their business and competitiveness.
The analysis showed that warning signs of serious debt problems, which are often present up to two years before the problem becomes severe, include companies shifting from short-term to long-term debt, and banks looking for increased security.
A total of eight companies saw high interest payments tip them into loss.
David Patterson, head of research at Plimsoll, said: “We are always surprised how no one at these companies seems to realise their debts are rising and the effect it’s having on the overall financial strength of the company. Unfortunately it’s not something they tend to measure until it’s too late. Our analysis spots these problems earlier.”
The full publication contains individual profiles for the 500 companies surveyed.
For a copy email Clair Sherwood at c.sherwood@plimsoll.co.uk. FPJ readers can request a five per cent discount.
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