In welcome good news, there has been a marked fall in the number of companies making a loss in the UK Telecommunications Services industry according to new research from analysts Plimsoll. Clearly, companies 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 explains, “When we examined profitability in the Telecommunications Services 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 351 to 316. 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 233 “high profit” companies that are leading this profitability renaissance. He says, “These companies really are profit kings. While the average profit margin hovers around 4%, these companies are averaging 16%. 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 their report have got it right and Pattison warns, “While there is good news elsewhere, it is worth remembering that there are still 316 companies making a loss, 195 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 180 companies in the report as a result of this toxic mix.”