Financial performance of recruitment agencies improves
30 March 2012
The financial performance of UK staffing companies has improved in the past 12 months, according to a survey by industry analysts Plimsoll.
Mon, 13 Feb 2012
The financial performance of UK staffing companies has improved in the past 12 months, according to a survey by industry analysts Plimsoll.
The survey reveals a fall in the number of recruitment companies making a loss. In a survey of 1,000 companies, the report found that the number of loss-making organisations fell from 315 to 221 over the past 12 months.“When we examined profitability in the recruitment agencies market last year we found millions of pounds worth of profit being wasted,” explains David Pattison, senior analyst on the report.
“In our latest analysis, the number of companies making a loss has fallen from 315 to 221. It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory.”
However, the report indicated significant differences in organisations’ experiences. There are currently 224 ‘high profit’ companies averaging a 12% profit margin in comparison with the 2% margin enjoyed by most companies.
However, 135 companies have now made a loss for two and even three years in a row. Debts for some of these companies have also risen over this time and currently 123 have been given a ‘danger’ rating by the report
The financial performance of UK staffing companies has improved in the past 12 months, according to a survey by industry analysts Plimsoll.
The survey reveals a fall in the number of recruitment companies making a loss. In a survey of 1,000 companies, the report found that the number of loss-making organisations fell from 315 to 221 over the past 12 months.“When we examined profitability in the recruitment agencies market last year we found millions of pounds worth of profit being wasted,” explains David Pattison, senior analyst on the report.
“In our latest analysis, the number of companies making a loss has fallen from 315 to 221. It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory.”
However, the report indicated significant differences in organisations’ experiences. There are currently 224 ‘high profit’ companies averaging a 12% profit margin in comparison with the 2% margin enjoyed by most companies.
However, 135 companies have now made a loss for two and even three years in a row. Debts for some of these companies have also risen over this time and currently 123 have been given a ‘danger’ rating by the report
