Over 200 UK recruiters are ending the year in financial difficulty, according to a new report from Plimsoll.

Author of the report, David Pattison, says: “Having clung on through the bad times, many of these struggling companies are going to run out of time and fail just before the recovery really takes hold. Sadly, some of them are just too weak to carry on and there will be a spike of failures in the New Year. On the flipside, their demise will bring a welcome reduction in competitive pressure for those left.

“A number of companies have managed to improve their performance in the last year. They are part of a band of 528 companies that prove success can still be achieved in the recruitment agencies industry despite difficult trading conditions. They also prove that bad companies fail in a recession; good companies simply do not. These companies will lead the industry out of recession with some smart acquisitions and maintaining their recent success.
 
“With too many companies chasing weakened demand it is inevitable that there are likely to be a number of high profile mergers and takeovers. In all honesty it’s long overdue. Once demand started to flag it was inevitable companies would be caught out. This period of consolidation is needed to sort out the dead wood. We have named 100 companies as the best acquisition prospects in the market.”
 
The 2010 edition of the Plimsoll Industry Analysis, which assesses every company in the UK recruitment agencies industry, is available now. Recruiter readers will get a £50 discount if they call 01642 626400 and quote reference PR/AA10.