Underperforming bakers struggle in competitive UK market

By Catherine Boal

- Last updated on GMT

Related tags Analyst Management

Testing times lie ahead for UK bakery manufacturers, according to
industry analyst group Plimsoll, who say one in four companies are
currently at risk of failure.

The market experts have compiled a league table of Britain's top 980 bakery businesses in an attempt to track trends and discover the key to profitability. Plimsoll said: "The equation is not as simple as strong sales equals survival. Instead, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight." ​According to research undertaken by the group, 280 of those companies examined are performing well with pre-tax margins of 7 per cent. Trailing these leaders are those in the 'good' category with 3 per cent. But the report indicates that there are almost as many companies struggling as there are thriving. Figures suggest that as many as 272 businesses are in a dangerous position with minus 1 per cent margins. Senior analyst at Plimsoll, David Pattison said: "210 of the 280 companies in the strong section are there for the second year running, proving that if you have a solid business where management is in control, you can maintain success irrespective of market conditions." "At the other end of the scale, there is no doubt in my mind that if the pundits are right and the UK market tightens towards the end of the year, then the 272 companies in the danger category will take the brunt of the downturn." ​ The report compiled by Plimsoll looks at the performance of each bakery company over the four years and is designed specifically to aid managers looking to gain an appreciation of the marketplace and the standing of their competitors.

Related topics Markets

Related news

Follow us

Products

View more

Webinars