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Winners and losers
Page 10
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STRONG SALES are not the sole key to commercial survival for hauliers, according to a report by financial analyst Plimsoll Publishing.
It claims that while 25% UK hauliers are doing well, 20% are at risk of failure. —The equation is not as simple as strong sales equals survival. Nor is the success rate of a firm automatically affected by market conditions. Instead, it depends on a balance of good margins,lowborrowing,responsible management and foresight."
In a survey of 2,000 hauliers, the company found that: • 564 are in a strong position, with a pre-tax profit margin of 7% or more • 241 are on a4% margin • 363 are rated as "mediocre" with a2% margin • 460 are surviving on a profit margin of 1% • 372 are in the danger zone with a margin of less than 1%, See www.plimsoll.co.uk www.roadtransport.com/cmnews