Almost 100 small companies in the UK poultry industry are in financial difficulty as the lingering effects of the credit crunch continue to bite hardest at the lower end of the market.
According to latest research by market analysts Plimsoll, smaller companies have not had the same facilities to ride out the recession as well as their larger counterparts.
“While large companies have relied on their size, brands and better access to cash, smaller companies have been left high and dry,” said report author, David Pattison. “We have given 92 small companies a Danger rating. While conditions have improved of late, I fear a high proportion will fail.”
Of the 731 companies analysed, some 139 are selling less than last year, having seen demand for their products dip and new competitors come in.
“There are clearly too many small companies chasing too little market. The inevitable consequence is another round of consolidation with large competitors buying small companies at a discount,” said Mr Pattison. “Of the 403 companies with assets of less than £3m, we have identified 170 as being vulnerable to takeover.”
* For more details on the Plimsoll Industry Analysis – Poultry, contact 01642 6264090, quoting reference PR/F170 for a £50 discount.