UK freight forwarders, 212 companies in a survey, "face a strategic dilemma" with "an abundance of unused cash sitting on the books", according to analysts at Plimsoll Publishing.
"Many of the 1,000 companies researched have improved their liquidity and have increased their cash levels, which is a surprise given that margins are still under severe competitive pressure," said senior analyst David Pattison.
"It sounds strange, but putting this cash to good use for the development of the company can be a very difficult problem. Just letting it sit in the bank, although comforting, is not going to have a huge benefit on the business.
"So you make an acquisition, make a large capital investment, or return in to the shareholders through dividends? These are not easy decisions for these companies with improving cash to make."
The study showed 546 firms surveyed improved cash reserves and cash volumes by 34 per cent on average. Twenty nine are now holding GBP5 million (US$8.4 million) in cash, Lloyd's Loading List reported.
At the other end of the spectrum, 454 firms in the survey experienced a 25 per cent decline in their cash volumes over 12 months, and 86 firms are running dangerously low levels of cash cover.
WORLD SHIPPING
06 May 2014 - 22:06
UK freight forwarders don't know what to do with their money: survey
UK freight forwarders, 212 companies in a survey, "face a strategic dilemma" with "an abundance of unused cash sitting on the books", according to analysts at Plimsoll Publishing.
WORLD SHIPPING
06 May 2014 - 22:06
UK freight forwarders don't know what to do with their money: survey
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