Size does not matter when it comes to fresh produce companies, analysts have claimed.

According to Plimsoll Publishing, size and scale are no advantage when it comes to overall financial success.

A new report by the company claims the industry’s smaller players are putting their larger counterparts to shame when it comes to overall financial performance.

The study looked at the largest 150 companies in the sector, and then compared their performance with that of 1,000 smaller competitors.

Of the top 150 companies profiled, 72 failed to increase sales beyond that of the industry average - dispelling the myth that they are capturing ever more market share.

Meanwhile, 80 companies made less profit than the average industry performer - dispelling the myth that their monopolisation of the market has led to inflated profitability.

Other startling revelations included the fact around 60 companies are less efficient in their use of people, while 29 are rated as being in financial danger.

Of the smaller 1000 companies profiled, 107 increased sales at over 21 per cent last year - proving that good growth is possible in a stable market, while 103 delivered over six per cent pre-tax margins - proving that high profitability is achievable irrespective of size.