Small forwarders make more
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Small freight forwarding companies are doing better than their bigger competitors, although the entire industry is sliding into recession, according to a Plimsoll analysis of 1,650 company's financial results.
Small companies are turning in pre-tax profit margins of 2.6%--compared with the 1.7% margins earned by big companies. This remarkable turnround—small companies usually report lower margins—comes despite lower turnover growth among small companies. Plimsoll managing director Don Turkington says the finding is entirely down to the quality of individual managements but says that more companies are now earning Plimsoll's "caution" and "danger" categories
Around 34% of freight forwarders are financially weak, he says, compared to 32% last year. The proportion of financially strong companies has stayed the same at 46%.