Market analyst Plimsoll, which conducted the research, said more than half the companies analysed in the report are making less profit than a year ago.
"With demand so subdued and the resultant competition, many companies are unable to charge the price they need to make healthy profit margins," said Plimsoll senior analyst David Pattison. "In the absence of pricing power, many companies will have to make painful but necessary cutbacks over the next 12 months".
"A total of 393 companies have borne the brunt of the downturn. These companies have seen their profit margins decimated and in the absence of a big upturn in demand will have to cut their cloth accordingly," added Pattison. "Watch out for further job losses and closures as these companies look to claw themselves back to profit next year. If they fail to act quickly they could find themselves running out of cash."
But the news is not entirely gloomy, according to Pattison.
"Amazingly, there are 201 companies that have maintained or increased their profit margins in the past year. All things considered, that's a pretty good achievement. Those companies prove that an efficient business selling the right product to the right market can still succeed in the UK exhibition and event organisers industry," he said.
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