Oil and gas heads process lossmaker list, claims survey
26 Jul 2018
The oil and gas sector has one of the worst records for loss making companies in the UK, according to a new survey from Plimsoll business analysts.
Using Companies House data, the firm studied the financial health of companies from a range of sectors, based on their accounts from the previous four years.
The data revealed that relative newcomers top the list of worst performers,with school academies on 59%, new media on 46% and rugby clubs on 45%, just ahead of football clubs on 44%.
Close behind and the only representative of the traditional process industries, is the oil and gas sector on 43%, says Plimsoll.
“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.
Without having an overview of at least three years it would be unwise to jump to conclusions
David Pattison, senior analyst, Plimsoll
However, he cautioned that there were many reasons why a company might report a loss, and these were not always down to poor performance.
“Some companies may be investing heavily, paying out dividends or financing a sharp increase in sales,” he added.
“One isolated year might not be too troubling, but when the overall financial health of a company is affected this points to a more serious problem. Without having an overview of at least three years it would be unwise to jump to conclusions.”
The problem of loss-making companies is not limited to the traditional process sectors, though. Just one place below oil and gas, is the onshore wind farm sector with 42% of firms making a loss.
