Around 40% of the UK’s top recruiters are growing at more than 10% per year and recording healthy profits, according to a new report from Plimsoll.

While 400 of the UK’s top 1,000 recruitment firms have recorded such growth, there are 77 other companies whose sales growth masks something much more sinister, according to David Pattison, Plimsoll senior analyst and author of the research.

Pattison says: “Essentially there are two types of growth in the market – Good v Bad. Seventy-seven companies have achieved over the 10% sales growth but in doing so have seen their profit margin collapse. They are simply overtrading. The accolades of growth are all well and good but the bills need paying too. More worrying, 35 of these companies have been loss making for two years – even with double digit sales growth I doubt they will make it to a third.

“While the market continues to recover and the 400 top performers show the way, there are 141 companies facing a very bleak future indeed. Losing sales, profits and probably most of their remaining options, these companies have been rated as ‘Danger’ in our report. Time is running out and only a takeover or a rapid turnaround is likely to redeem their situation.”

 
                                           
Recruiterreaders are entitled to a £50 discount off this special edition of the Plimsoll Industry Analysis – Recruitment Agencies. Call 01642 626400 for further details and quote reference PR/SV30.