FSP Accounts Barometer

The latest data available for All Retailers are at September 2009, when 36% of retailers and 44% of PLCs were deemed to be Healthy. With the disparity in reporting dates, historical information is constantly being updated. This tends to show that whilst the latest month information remains consistent, the percentage of healthy retailers dips a couple of points as more accounts are filed. A couple of months ago, we reported that 38% or all retailers and 45% of PLCs who had reported in the year to August 2009 were deemed to be Healthy. These figures now stand at 36% and 43% respectively.

 

Many retailers have also reported to December 2009, however, with a gap around October and November, this is not yet shown on the graph.

Recent SnapShop enhancements now mean that members can be notified when their chosen retailers file accounts.

Due to the time lag involved in reporting following the year end, we are looking at a financial picture from at least 8 months ago. Major political and economic change, should it have any impact at retailer level, will not make itself felt for some time. For much of 2008 and 2009, the FSP Accounts Barometer has remained generally consistent, showing around 37% of retailers are Healthy (based on those who have reported results in the year to the most recent reporting date). Whilst PLCs were generally at least 10 percentage points higher in 2008, that gap has narrowed of late. Both percentages are up on 2007, with All Retailers and PLCs tracking a similar path. However, with an incomplete picture – companies file their accounts any time within the time frame allowed by Companies House – and recent reports skewed by those in a hurry to get their results out (the PLCs, whose reporting deadlines are tighter, and those with good news to shout about), it will be interesting to see if the All Retailers percentage increases past 40% Healthy and if the gap between All Retailers and PLCs narrows any further.

In 2007, the general picture was less than 35% of retailers were deemed to be Healthy – a sure sign that companies were feeling the pinch at the start of the recession. The picture has been reasonably constant since the beginning of 2008, it will be interesting to see if this constancy remains under any new government. 
 

 

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What is the FSP Accounts Barometer

“With over 1,500 retail related companies being monitored by FSP, the Accounts Barometer gives valuable insight into the health of the retail industry.”

FSP analysis of retailer financial health covers a number of key indicators  A useful summary measure is the Wealth Creation Index (P₂), which is defined by the Department for Business Innovation and Skills (BIS) as the ratio of Value Added to the costs of employees and depreciation. The graph shows all retailers with an accounting reference date (ARD) in the year to the end of the month shown and the percentage which are defined as at least "fairly healthy" with a P₂ of 125 or more.

The total number of accounts shows a recent dip as there is a time lag between the ARD and accounts actually being filed.  Readers should be aware that this smaller sample has an obvious impact on the % healthy trendline.

The barometer is updated regularly as accounts are filed.

The BIS Guide and Wealth Creation Efficience Index by retailer are available to members of SnapShop

 

The content of this report has been derived from statistical, trade and published sources. Whilst FSP has used its best endeavours to ensure the accuracy of the information, it cannot accept liability for any data therein nor any interpretation made there from.