Change or face failure is the warning to 200 of the UK’s top 1502 UK security companies.
Nobody ever thinks they will be responsible for a failing company, say industry analysts Plimsoll. However, they add, it is a harsh reality of business that some of you reading this are working at, or will know of, a company that is heading for failure, the writers say. A recent study into the UK top 1502 security businesses suggests that up to 200 – 13pc of the companies in the industry are at a high risk of financial collapse.
The financial performance of each company has been researched and the full study includes an individual analysis and overall financial score for all 1502 entries. It names 200 companies rated as ‘danger’. They are suffering from low and declining margins and uncontrolled rising debts. Their position is now so serious that even normal business decisions are becoming constrained, it is claimed.
What they say
David Pattison, senior analyst on the project, says: "The simple message is change or risk failure. At these high risk companies, the managers need to act quickly to get their firms back on a decent financial footing. It seems inevitable that we will see a period of consolidation. Job losses and certainly cost cutting are essential if these companies are to survive. Personally, I would not rule out a series of takeovers. Most of these companies are blissfully unaware of how exposed to acquisition they are."
The researchers add that the analysis is aimed at the non-financial manager who needs to be alerted to changes in the financial performance of security companies, whether they are customers, competitors or suppliers.
The full 1802 page study, priced at £350, is a guide to the financial health of each of the 1502 companies. Copies are available by calling 01642 626400.
