Plimsoll paints a grim picture of grinding debt

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

A report from industry analysts Plimsoll Publishing Ltd says zero growth, sliding profits and escalating debts have pushed almost two thirds of the UK care homes industry to the brink of failure. Plimsoll says its annual financial survey of the top 1000 companies in the sector has shown that consolidation will be essential as supply is currently outstripping demand. Senior analyst David Pattison said 58 per cent of companies had now deteriorated in overall financial strength from last year¹s ratings. “Perhaps even more disturbing is that 503 companies are experiencing their second year with a Å’danger¹ rating,” Mr Pattison said. “For these companies, time could be running out. The Å’danger¹ rating is given to companies whose financial performance is suffering. Their balance sheets are now straining under the heavy debts and this, combined with companies already losing money, could be a fatal mix. “Strictly speaking a company cannot stay in our Å’danger¹ rating ­ either they will improve or disappear. The

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