Wine wholesalers and distributors in "good shape" to overcome Brexit uncertainty
The majority of UK wine wholesalers and distributors are in surprisingly good shape to cope with any Brexit fallout, a new report has found.
The majority of UK wine wholesalers and distributors are in surprisingly good shape to cope with any Brexit fallout, a new report has found.
According to a report which checked the financial health of the UK's top 1,223 wine wholesalers and distributors, 483 firms are performing well in current market conditions and are well prepared for any uncertainty in the sector.
David Pattison, senior analyst at Plimsoll Publishing which collated the data, said: "Since the decision to leave the European Union, the market has been dogged with speculation and uncertainty.
"However our latest research suggests the majority of wine wholesalers and distributors are surprisingly well placed. Having said that, however, that's not to say there will not be an impact, but they are in good shape to cope and respond to any upheaval."
The study identified and analysed the vital areas of business performance that lead to success or failure.
These factors were then applied to the 1,223 companies to highlight the fittest and those showing signs of serious financial weakness.
Depending on the overall financial health, each company was given one of five health ratings.
483 businesses were considered to be in a strong position as the fittest in the industry in terms of financial health.
114 rated as good and 168 firms rated as mediocre.
Mediocre businesses were designated as needing to "fine-tune" their businesses.
168 were giving caution ratings and were urged to put prevention measures in place.
219 businesses found themselves in the Danger category.
These were businesses which showed a "serious weakening" in financial health.
Pattison advised: "Nobody at this early stage will know the consequences of the Brexit vote, however companies who are rated as Danger have two options: they can hold their nerve and hope to trade their way out, or they can put a survival plan in place and look to consolidate their business.
"Once you take notice of the warning signs, then directors need to act."
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