UK exhibition companies have lost £81m in profit in the last year, according to the latest research by market analyst Plimsoll.
Of the 622 companies analysed, more than half were making less profit than they were a year before.
Senior analyst and author of the Exhibition Services report, David Pattison, says reduced demand and the resultant competition has meant companies have been unable to charge the prices needed to make healthy margin, with 391 companies bearing the brunt of the downturn.
“These companies have seen their profit margins decimated and in the absence of a big upturn in demand, will have to cut their cloth accordingly. Watch out for further job losses and closures as these companies as they look to claw themselves back to profit next year. If they fail to act quickly they could find themselves running out of cash,” says Pattison.
However, 76 companies have maintained or increased profit margins. “Those companies prove that an efficient business, selling the right product to the right market, can still succeed in the UK Exhibition Services industry,” says Pattison.