A record 242 companies in the wood products industry are showing early signs of financial stress, according to a new report.
The “health check” report of the top 1,000 companies in the sector, by Plimsoll Publishing Ltd, says the 242 firms have fallen into the “danger” zone over the last four years. Symptoms include overtrading, low profitability and high debt
Plimsoll senior analyst David Pattison said: “Companies rated as ‘danger’ must act now to avoid further financial deterioration and improve their long-term prospects. Our research proves that company failure is preventable if companies take action sooner rather than later.”
A total of 386 companies are rated as “strong”, with virtually no debts and average margins of 4.9%. Mr Pattison said their performance showed that blaming the industry was no longer a valid excuse for poor results.
