There are early signs that the fresh produce industry is slowly emerging from the malaise of the last two years, according to new research.
Industry analyst Plimsoll Publishing has said a number of strong companies have come through the recession largely unaffected and are set to capitalise on a resurgence in 2010.
It also projects that a further 7,000 jobs will have to be shed if companies are to get back to profit and remain competitive in 2010, and that further consolidation is predicted.
David Pattison, senior analyst and author of the 2010 Plimsoll Analysis, said: “With the average sales per employee figure down to £342,000, employees need to “buy in” and contribute more to the recovery of their companies - if you still have a job expect to work much harder in 2010. £444 million-worth of profit has been wiped from the market in the last year and employers have no choice but to cut their cloth accordingly and get more from their resources”.
Pattsison added: “In all, we named 168 companies in our latest analysis that are ripe for takeover or merger with a larger parent. It’s a buyer's market in 2010, with many companies still recovering from the recession. Our report has picked some great examples of companies that are currently undervalued because of the recession that would be very attractive to prospective owners. For many struggling companies, a buy-out may be the quickest route to get the company back on an even keel - even if it means relinquishing their independence.
“Inevitably, this will further increase job losses as new owners would quickly look for efficiency gains and to synergise their new acquisition with existing operations.
“There are some real good news stories out there. We rated 414 companies as ‘strong’ in our latest report. As expected, this number is down compared to previous years but these companies will lead the market out of the downturn. They have managed to be commercially successful without jeopardising their financial stability”.
The new Plimsoll Industry Analysis - Fresh Produce gives an instant performance rating on the top 993 companies in the market. Each company has been rated as “strong, good, mediocre, caution or danger” according to their latest performance.
No comments yet