At a Loss

The findings were produced using data from Companies House, among other sources, combined with the Plimsoll Model; Plimsoll Publishing's unique analytical tool which examines the financial health of a company using their previous four years of accounts. The results provide an interesting perspective on what could be the UK's most precarious industries.

School academies topped the list, with 59% companies in this sector reported to be operating at a loss. New media companies, rugby clubs and football clubs also featured, with 46%, 45% and 44% of these industries respectively consisting of loss-making companies.

The following is a list of the ten industries with the highest proportion of loss making companies in the UK:

School academies         59%

New media                    46%

Rugby clubs                  45%

Football clubs               44%

Oil & gas                      43%

Newspaper publishing   42%

Cycle shops                  42%

Onshore wind farms      42%

Footwear retailers          40%
Solar equipment suppliers 39%
and installer

This information could have significant implications for companies involved in mergers and acquisitions.
But it should also be of interest to managers in industries which are more heavily affected by shocks in their supply chains. Just outside of the top 10 list, the agriculture sector was prominent in the loss-makers' list. The analysis found that 38% of fish farms and 36% of arable farms are reporting losses. There are numerous potential reasons for this, ranging from weather conditions to the cost of machinery and raw materials.

"It is essential for business continuity that buyers in these sectors understand where supply chains may be vulnerable in order to put in place back up plans," comments Plimsoll's senior analyst David Pattison.