The analysis gave a "danger" rating to 396 of the 2000 companies and, in all, 680 companies are stated to be at a high risk of failure. The ratings of companies were determined from a study of their financial health over the past four years.
Companies at high risk are typically those that have been loss-making or are heavily in debt and do not have the resources to compete in a tighter economy. The majority of these companies will be bought out or sold, predicts Plimsoll. The process of improving their status will take years.
Of the 396 companies in the danger category, over 52% have appeared for the second year running. There are 190 new companies in this grouping, and 121 companies in this state last year have improved their status enough to leave the danger status.
Source
Electrical and Mechanical Contractor