A quarter of the UK security industry will suffer casualties in ?the battle for the customer?, according to the latest Plimsoll Analysis on the UK security industry.
Plimsoll report a record number of companies showing declining sales and losing money. In their analysis of the top 1,000 companies in the UK security industry, they found 234 companies need to retreat in order to survive, 293 should hold their position and 367 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 security industry is waging a war.?
Walking wounded
The walking wounded are the 234 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 greatly; and, 27 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 7.4 per cent on sales to an average one per cent profit margin. Unless these 234 companies move quickly, 367 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 367 winning companies apart from the rest include: 63 companies managed to grow last year on average at 15 per cent; 118 companies made a 63 per cent pre-tax margin on sales; 91 companies made a 29 per cent return on investment; and 67 companies increased their work force by 10 per cent or more last year. For this publication, œ325, 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.
