Analyst predicts tough times in 2008
Escalating economic worries, higher prices and tighter spending will combine to make 2008 a much tougher year in the care homes market, according to business analysts Plimsoll Publishing. The company’s senior analyst, David Pattison, offered some observations on sector performance in 2007 and looked forward to the new year:
“Almost every sector of British business stands at a crossroads as it prepares for the coming 12 months,” said Mr Pattison.
“With uncertainty in the economy, some will want to sit tight and do nothing radical. Others will need to cut costs quickly to weather the possible storm, but some who have built up large cash reserves will be looking at this period of difficulty to make acquisitions at a bargain price.
“The average growth in the care homes sector in 2007 has been 6.8%. This is pretty much in line with our predictions at the start of the year, but this growth was by no means universal. Twenty-four per cent of companies actually saw their sales