A new report claims the number of companies making a loss in the UK exhibition services industry has fallen in the past year.
According to research from analysts Plimsoll Publishing, exhibition companies have been rebuilding profitability in the face of economic turbulence. The company’s findings were based on analysing the commercial and financial results of 661 companies involved in the exhibition industry including both organisers and suppliers.
“When we examined profitability in the exhibition services market last year, we found millions of pounds worth of profit being wasted,” Plimsoll senior analyst David Pattison explained.
“In our latest analysis, the number of companies making a loss has fallen from 307 to 235. It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory.”
Pattison claimed 60 “high-profit” companies are leading the pack with average profit margins of 20 per cent. This is against an industry average of five per cent.
“To do so in a tight market is testament to how well these companies are managed,” he claimed. But while the figures are improving, Pattison warned 235 companies are still reporting losses, 131 for the second or third year in a row.
“What’s more, many of these loss making companies have seen their debts rise in the same period,” he said. “Sadly, we have issued a ‘danger’ rating for 97 companies in the report as a result of this toxic mix.”
Last June, Plimsoll predicted UK exhibitions could change hands this year after finding 129 companies with sizeable cash reserves on their balance sheets.
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