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Small forwarders make more

18th July 1996, Page 10
18th July 1996
Page 10
Page 10, 18th July 1996 — Small forwarders make more
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Which of the following most accurately describes the problem?

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%.