All change for UK firms

It's going to be make or break time for 29% of ALL companies in the UK security industry over the next 12 months. That is the stark message contained in Plimsoll Publishing's latest report.

Analysing 1000 UK companies in the security industry, the 'Profit Predictor Edition 2001: Security' reveals that the industry is set to grow at a rate of 6% over the next 12 months. This growth will not be universal, however, as Plimsoll forecasts that only 37% of companies will actually see sales increase, 35% will observe 'stagnant' sales and 29% are likely to preside over a decline.

Developing a positive approach to improving profitability, Plimsoll has devised three 'Profit Predictors' to which security companies might refer. The aim of these predictors is to anticipate how a company may increase profits over the next 12 months by adopting a particular type of business plan.

Consolidating: the proposition is to reduce sales, overheads and staff to improve profitability (any such companies need to adopt this emergency plan as they are currently loss making, while the potential here is huge – most of these 152 firms could see margins lifted from average losses of 10.5% to margins of 4.9%);

Tweaking: although 186 companies said to be at this stage are 'doing OK', they need a period of stability before considering expansion (taking a critical look at non-essential costs, margins could well improve from 2.8% to an average of 5.4% – giving an overall profit increase of 93%);

Expansion: those 195 companies who are expanding are well-placed, their only dilemma being how to exploit a winning position (many have cash to spend, yet to move on they must increase sales to improve profits).

Copies of Plimsoll's report are priced at £450. Call Jennifer Ovington on 01642 257800 for more details.