Resellers riding out recession - PC Retail

Resellers riding out recession

Study of top the 1,000 ICT specialists finds 38 per cent are in a strong financial position
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A study of the UK's top 1,000 resellers has found that two-fifths are financially 'strong', and well placed to weather the recession according to the latest study from Plimsoll.

It described 375 companies as 'delivering excellent performance' after they demonstrated a clear response to the challenges posed by the recession. On average, the top performers saw their sales increase by three per cent and profit margins rise to 3.8 per cent.

However, it found 174 companies were in danger, with the market researcher saying 'their survival is now in question'.

"It was no real surprise to see the high number of companies on the danger list, given the current economic crisis affecting the ICT reseller industry," commented senior analyst David Pattison.

However, he was positive about the large number of resellers in a strong position. "We were very surprised to see the high number of excellent businesses making it on to the strong list.

"I think these firms have really upped their game in these difficult times and they are concrete proof that necessity is the mother of invention," he added.

Plimsoll rated all 1,000 firms and a scale of strong, good, mediocre, caution and danger. It rated 140 good, 193 mediocre, and 118 caution.

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