Haulage sector's outlook worsens • The financial future of UK
18th June 1998, Page 12
18th June 1998
Page 12
Page 12, 18th June 1998
— Haulage sector's outlook worsens • The financial future of UK
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haulage companies is becoming increasingly bleak, says a report from a financial analyst. A depressing 56% of hauliers face collapse unless they undertake financial restructuring, according to Middlesbrough-based analyst Plimsoll Publishing, which surveyed 2,076 firms. This compares with 53.3% of companies in serious trouble in 1997 and 44% in 1996.
Only 26% of the hauliers are rated as strong or good, compared with 31% last year and 37% in 1996. The analysts examined each company's performance over the past four years, including trading stability, profitability, working capital and how fast it could convert its assets into cash.
Pre-tax profit margins as a proportion of sales have decreased from 2.9% a year ago to just 2.4%.