One in two companies in the UK gaming industry is making a loss as economic conditions continue to take their toll, new research has revealed.
A new study by Plimsoll shows that some of these 383 loss making companies have simply had an isolated bad year, while others are “burying their heads in the sand.”
“More and more companies are making a loss for the first time in their history. Many can rightly claim to be victims of difficult trading conditions,” David Pattison, author of the new market report into company performance, said. “A quick refocus on profitability would ensure this is an isolated occurrence.
“252 companies are making a loss for the second, even third year running and are simply selling at prices their business cannot sustain. They have put off making the painful decision that more prudent companies made a while ago. No one wants to trim costs, lay off staff, cancel dividend payments and the like but carrying on regardless is now unviable. They can no longer bury their heads in the sand.”
