UK recruitment agencies have recorded improved financial performance over the last 12 months, according to a survey by industry analysts Plimsoll.
The survey of 1,000 companies revealed a fall in the number of recruitment agencies making a loss, with 221 loss-making companies over the last 12 months, down on the previous figure of 315.
Profitability figures in previous years had shown millions of pounds worth of profit being wasted. Therefore it was highlighted by senior analyst, David Pattison that companies have been making good progress in stemming waste money flows, “It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory.”
But there are still 135 companies who have made a loss for two or even three years in a row, with debts for some of these rising over the time. Another 123 were also given a ‘danger’ rating by the report, indicating the potential for financial woes in the upcoming year.
Funding solutions for Recruiters
Recruitment agencies can often benefit from cashflow solutions to help plug the gap caused by late payments.
Business finance solutions are increasingly used by recruiters and can provide a flexible cash boost tailored specially to your business needs.
More and more businesses are turning to business finance solutions like Invoice Factoring or Invoice Discounting as their banks become more and more strict with their lending.