Interest rate rise a wake-up call for food firms

By Rod Addy

- Last updated on GMT

Related tags: Takeover

Rising interest rates could prove a godsend for food manufacturers, according to commercial analyst Plimsoll Publishing.The company said research it...

Rising interest rates could prove a godsend for food manufacturers, according to commercial analyst Plimsoll Publishing.

The company said research it had conducted indicated that almost half of the businesses in the sector were more in debt than they had been at any time in their history.

However, it added the rising rates could serve as a “wake-up call” urging them to look seriously at their balance sheets and change direction.

Climbing rates could also bring stability to the sector, said Plimsoll, because they would slow down the pace of acquisition activity. This could be bad news for smaller firms looking to sell out to bigger players, but good news for those fearing a hostile takeover, it added.

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