One in three companies in the UKs recycling industry are still in financial difficulty.
Results from Plimsoll Publishings Plimsoll Analysis: An assessment of the top 1000 companies in the UK recycling industry show that 320 companies out of the top 1,000 are ending the year in financial difficulty.
Author David Pattinson said: 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. Sadly, some of them are just too weak to carry on and there will be a spike of failures in the new year.
Positively however, this figure has fallen since Plimsolls previous report in June, which stated 38 percent of recycling firms were facing financial trouble. (See MRW story)
Pattinson added: A number of companies have managed to improve their performance in the latest year. They are part of a band of 388 companies that prove success can still be achieved in the recycling industry despite difficult trading conditions. They also prove that bad companies fail in a recession; good companies simply do not. These companies will lead the industry out of recession with some smart acquisitions and maintaining their recent success.
Additionally, it is felt that more takeovers and company consolidation may be seen as too many firms chase weakened demand.