How risky is it for a business to gain market share through funding from banks? So ask industry analysts in a report.
With over half of the UK security industry increasing debt last year, nearly half – 45 per cent – are putting this extra finance to good use. Some 167 ?chancers?, named in the Plimsoll Strategic Risk Index of the security industry, are using debt to gain market share. Last year these firms increased sales by almost twice the industry norms, capturing six per cent extra market share. Yet they are carrying over twice as much debt as their competitors. David Pattison, Senior Analyst at Plimsoll says: ?Taking other people’s money and using it to generate a profit is great in the good times. The dilemma for these companies is that they will need to keep charging a price premium to finance the debt.? For details of this study of 732 security companies, priced œ305, call 01642 257800. Readers of Professional Security can claim a five per cent discount when mentioning this article when ordering. See www.plimsoll.co.uk.
