Stockton on Tees, UK: There has been a marked fall in the number of companies making a loss in the UK road haulage industry, according to new research from analysts Plimsoll. Findings suggest that hauliers have battened down the hatches and rebuilt their profitability to give themselves the best chance of riding out the current economic turbulence.
David Pattison, senior analyst on the latest report, says: “When we examined profitability in the road haulage market last year we found millions of pounds worth of profit being wasted. In our latest analysis, the number of companies making a loss has fallen from 261 to 215. It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory”.
Pattison also reserves special praise for the 150 “high profit” companies that are leading this profitability renaissance. “These companies really are profit kings. While the average profit margin hovers around 2%, these companies are averaging 10%. To do so in a tight market is testament to how well these companies are managed”.
Naturally, not all of the 1000 companies Plimsoll has analysed in its report have got it right and Pattison warns that there are still 215 companies making a loss, 123 of which are doing so for the 2nd or even 3rd year running.
“What’s more, many of these loss-making companies have seen their debts rise in the same period. Sadly, we have issued a danger rating for 172 companies in the report as a result of this toxic mix”.
