More than half of the UK recruiters polled by Plimsoll have achieved a ‘strong’ rating, according to the latest industry analyst’s latest report.

The report also reveals:

• Recruiters will need to look to beat the current average profit margin of 2% if they are to cover costs and invest in other growth areas, while 194 companies are leading the way with growth of more than 10%.
• One in four recruiters, rated as ‘Danger’ will be increasingly squeezed out of the market as they are simply not competitive in the current economic environment.
• A year of bargains is possible with 122 distressed companies identified that could be bought for a discount and a further 86 fast growing companies that will attract the attention of the larger players in 2011.

David Pattison, senior analyst and author of the 2011 Plimsoll Analysis, says: “Now that the storm is lifting we have been able to assess the damage left behind. Around 250 companies are in parlous state and starting the New Year clinging on for dear life. We have rated them as Danger accordingly. Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business”.

Recruiter readers are entitled to a £50 discount of this edition of thePlimsoll Industry Analysis – Recruitment Agencies. Call 01642 626400 for further details and quote reference PR/SV30.