Almost two-thirds of the companies in the network and data communications market are flourishing, while the remaining third are struggling to break even, according to research firm Plimsoll Publishing.

The analyst looked at the financial performance of the top 720 UK network and data communications firms. It found that a third of the companies have reported a loss for their most recent financial year. Of that third, 31 per cent of these firms posted a loss for a second consecutive year. However, more than half of the assessed companies are making an average profit margin of 57 per cent.

David Pattison, senior analyst at Plimsoll, said: “The recent trading period has been tricky and many firms are struggling. Yet at the same time half of the firms assessed seem untouched by cost increases and competitive pricing.”

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