Analysis suggests good management is critical

Posted on June 1st, by editor in Caring Times. No Comments

A new league table from financial analysts Plimsoll Publishing aims to explain why some companies in the care sector fail while others prosper. Plimsoll says one in two providers are currently at risk of failure, while one in four are doing well. “The equation is not as simple as strong sales equals survival,” says senior analyst David Pattison. “Nor is the success rate of a firm automatically affected by market conditions. Instead, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight.” Plimsoll says its new analysis of the market weighs all these ingredients and turns them into a one-page snapshot of each company’s prospects. From that, it establishes a league table based on 1000 leading firms that looks like this: # 269 companies are in a strong position, with a pre-tax margin of 16 per cent. # 51 are in the good sector, on 13 per cent margins. # 63 are rated as mediocre, on 6 per cent. # 131 are in the “caution

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