The latest Plimsoll research shows a delicate balance in the fresh produce market between success and failure.

The Plimsoll study found that 274 companies are in a strong position, with a pre-tax margin of four per cent, 149 are in the good sector, on two per cent margins, some 209 are rated as mediocre, on one per cent, while 228 are in the caution category, with -1.2 per cent margins and an alarming 140 are in the danger range on -1.9 per cent.

“Nearly nine out of 10 UK companies currently in receivership were rated in the lowest two categories by Plimsoll in the two years before their demise,” said the company’s senior analyst David Pattison. “Two hundred and twelve of the 274 companies in the strong section are there for the second year running, proving that if you have a solid business where management is in control, you can maintain success irrespective of market conditions. The most successful firms are also largely free of debt.

“At the other end of the scale, there is no doubt in my mind that if the pundits are right and the UK market tightens towards the end of the year, then the 140 companies in the danger category will take the brunt of the downturn.”