Up to a third of the CCTV industry will suffer casualties in ?the battle for the customer?, according to the latest Plimsoll Analysis on the UK CCTV industry.
Plimsoll report a record number of UK CCTV companies showing declining sales and losing money. In their analysis of the top 380 companies in the UK CCTV industry, they found 52 companies need to retreat in order to survive, 48 should hold their position and 55 need to force home their current advantages. David Pattison, Senior Analyst at Plimsoll, said: ?Every general of an army must preserve the life of the troops by recognising the signs of strategic advantage and exploiting their enemies? weaknesses. If companies are vulnerable then they must retreat and re-group so they can fight another day. It seems the CCTV industry is waging a war.?
Walking wounded
The walking wounded are the 52 companies Plimsoll feels should re-group. These companies would greatly benefit by strengthening their strategy in three key measures: cutting back on all non-profit making parts of the business is primary; debt levels should be reduced by at least 29 per cent; and, 18 per cent of the workforce would have to go. The analysis suggests to Plimsoll that fundamentally many of these businesses could have a great future if costs could be controlled. The analysts report that if costs were brought in line, margins would rise from an average loss of 9.4 per cent on sales to an average 1.2 per cent profit margin. Unless these 52 companies move quickly, 55 companies are set to win the battle. Pattison added: ?These companies have edged into a winning position and I believe they have yet to recognise how good an advantage they have. Their strengths speak for themselves yet their biggest threat is sitting back and doing nothing.?
Above norm
Some of the outstanding figures that set these 55 winning companies apart from the rest include: 19 companies managed to grow last year on average at 26 per cent; 16 companies made a 19 per cent pre-tax margin on sales; 15 companies made a 29 per cent return on investment; and seven companies increased their work force by 10 per cent or more last year. For this publication, ล325, ring Plimsoll on 01642 626400 or visit www.plimsoll.co.uk. Readers of this article will receive a five per cent discount if mentioning this article when ordering.
