Rising interest rates wake-up call
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"Our research shows over a third of UK sound equipment companies are in more debt than they have been at any time in their history," says David Pattison, senior analyst at Plimsoll. "Rising rates are a useful wake-up call. Many of the companies in question have been enticed by low interest rates and the lure of easy debt secured on rapidly rising property prices, and so have been able to cover up flaws in their business strategies - effectively buying time. There is just enough time left for these firms to look seriously at their balance sheets and change direction."
If companies reduce their level of debt and streamline their business models, they may have a future, according to Plimsoll. But if they ig