Plimsoll: some providers are too weak to continue
As the end of a turbulent 2009 approaches, market analysts Plimsoll have examined the highs and lows of the care home sector and flag-up threats and opportunities facing the market in 2010.
Plimsoll says 310 companies in the market are finishing the year in financial difficulty. David Pattison, author of the new Plimsoll Analysis: An assessment of the top 500 companies in the UK Care Homes industry, said the recession had put prudence at the forefront of boardroom strategy, but for some it would be too late.
‘Having clung on through the bad times many of these struggling companies are going to run out of time and fail just before the recovery really takes hold,’ said Mr Pattison.
‘Sadly, some of them are just too weak to carry on and there will be a spike of failures in the New Year. On the flipside, their demise will bring a welcome reduction in competitive pressure for those left.’
However, a number of companies had managed to improve their performance in the late