Around a quarter of UK recruiters are struggling for survival or are seeking rescue through a takeover, according to new analysis from Plimsoll.

The research reveals the strategy for 234 UK recruiters over the next year is to keep their heads above water or seek a buyer for the business.

The research also finds 107 companies struggling for growth, while 133 companies are growing at a pace way beyond the rest of the market at the expense of profitability.

However, there remains a band of 464 companies that are market leaders, achieving above-average sales growth, retaining healthy profit margins at an average of 3% and carrying little to no debt.

David Pattison, author of the new Plimsoll Analysis, says: “It’s undoubtedly tough out there with demand still subdued and costs rising all the time. With too many companies chasing too little market, many are finding it difficult to pass on rising costs to customers. As a result we have seen profitability fall, with average margins in the market now down to 2%”.

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