Plant hire companies see profits dive

Overtrading is beginning to affect the plant hire industry as more than 350 significant firms chase sales at the expense of profitability, according to the latest Plimsoll financial report.

The report claimed the behaviour of these overtrading companies has yet to impact on the industry as a whole, however, almost 1,000 plant hirers have seen their profits decline during the last 12 months.

“The good times could be passing; profits are certainly falling. Worryingly, a quarter of the 2,000 companies assessed have seen their profits slump,” said Plimsoll senior analyst David Pattison.

More than 391 plant hirers are losing money and 850 are just about breaking even. Pattison said: “The question is, will the 700 or so unaffected companies see their profit stream jeopardised by those overtrading?”