273 UK security companies “in Danger” according to latest Plimsoll Market Analysis

The 1,450 largest companies in the security industry have been assessed, valued and rated by Plimsoll Publishing on their attractiveness for takeover. Based on this month’s data, the Plimsoll Publishing Market Analysis has rated no less than 273 companies as being ‘in Danger’. With nine out of ten previously failed security companies given the same ‘Danger’ rating two years prior to their demise, the detailed Market Analysis affords an early warning of who might be next.

Each of the 1,450 security companies included in the Plimsoll Publishing Market Analysis have been rated ‘Strong’, ‘Good’, ‘Mediocre’, ‘Caution’ or ‘Danger’. These ratings are based on the Plimsoll Model: a graphical model that highlights the current strength of each business and measures change in performance over the previous four years.

72 companies are deemed to be highly attractive targets for takeover bids. A nine-point checklist is provided on each company to determine their attractiveness. This is presented in a simple ‘fuel gauge’-style measure. The higher the gauge, the more attractive the company.

This month’s latest acquisition findings from the analysis rate 253 security businesses as being ‘highly attractive’ for takeover, while 1,081 companies are ‘worth considering’ and 113 businesses are  said to be ‘unattractive’.

Intense competition in UK market

407 companies are said to be loss-making. As a further sign of the intense competition present within the UK’s security industry, 186 companies continue to sell at a loss for the second year running. These serial loss-makers are adding to the congestion in the market, often undercutting the rest of the market and driving down profit margins across the board.

The next 12 months represent something of a crossroads for these companies as, according to Plimsoll Publishing’s experienced analysts, they face up to two distinct choices: either they begin to operate more responsibly or they run out of cash.

232 companies have seen their overall value fall by more than a quarter in their latest year. While most other companies have added to their overall worth, these businesses need to arrest a worrying decline.

The Plimsoll Publishing Market Analysis also provides a valuation for each business for the previous four years as well as a “future year” showing what they could be worth in times hence. Valuations in the analysis are updated by Plimsoll Publishing as soon as new accounts are received.

Pleasingly, 576 companies have increased in value during the latest year under scrutiny.

*For further information (and to access a copy of the full report) visit https://www.plimsoll.co.uk/market-reports/Security

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

Related Posts