June 29, 2012

UK poultry companies face financial loss

An analysis market report into company performance stated that a quarter of companies in the UK poultry industry are making a financial loss.

The Plimsoll reports states that 195 companies are making a loss as economic conditions continue to take their toll.

"More and more companies are making a loss for the first time in their history," said David Pattison, author of the report. "Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would make sure this stays an isolated occurrence."

However, overall conditions are no excuse for a band of serial loss makers in the market, Pattison said. The report found 100 companies are making a loss for the second and third year running and are selling at unsustainable prices.

"They have put off making the painful decision that more prudent companies made a while ago. No one wants to trim costs, lay off staff, cancel dividend payments and the like, but carrying on regardless is now unviable." Pattison said.