1 in 3 companies in the UK Telecommunications Services industry is making a loss as economic conditions continue to take their toll. A new study has been completed that reveals how many of these 286 loss making companies have simply had an isolated bad year and how many are burying their heads in the sand.
David Pattison, author of a new market report into company performance in the market says, “More and more companies are making a loss for the first time in their history. Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would ensure this an isolated occurrence”
However, overall conditions are no excuse for a band of serial loss makers in the market. Pattison explains, “180 companies are making a loss for the second, even third year running and are simply selling at prices their business cannot sustain. They have put off making the painful decision that more prudent companies made a while ago. No one wants to trim costs, lay off staff, cancel dividend payments and the like but carrying on regardless is now unviable. They can no longer bury their heads in the sand”.
“I congratulate management teams that have made the often difficult and unpopular decisions. They have cut their cloth according to the market conditions and are more stable for it. Those failing to do so are running out of time and cash. Without a big increase in demand they cannot support their pricing strategy much longer. Watch out for a number of failures among the companies we have identified”.
The new Plimsoll Analysis – Telecommunications Services provides an intimate assessment of 1000 companies in the market. It will tell you instantly which companies are pursuing a reckless strategy and who is getting it right.
Readers of Comms Business are entitled to a £50 discount of this new special edition of the Plimsoll Analysis – Telecommunications Services. Call 01642 626400 for further details and quote reference PR/EL13.