Market study shows squeezed margins

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

A study by market analysts Plimsoll Publishing shows that 34 per cent of care home operators have accepted a reduction in margin or have fallen into loss as a sacrifice for maintaining or increasing sales levels. Statistics extracted from the analysis indicate the extent to which profitability is being compromised as companies1 sales targets come under increasing pressure. The study says: # 14 per cent of companies are already selling at a loss; # 8 per cent of companies are losing money for the second year; # 46 per cent of companies’ margins have fallen; # 34 per cent of companies have maintained sales yet with reduced margins; # 10.5 per cent is the average margin; # 15.9 per cent is the average return on investment. Senior analyst David Pattison said that, just as the retail sectors, furniture, electrical goods, and clothing have recently been in the news as companies fought on the high street for consumer spend, there could be early signs of similar intensity in the care homes sector. “As companies becom

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