Growth makes firms a good catch

The report, by market analysts Plimsoll Publishing, says that investors are likely to be attracted to the security industry because growth is visible in most sectors.

It says that 'computer security' has the highest percentage of companies delivering 10 per cent or more sales growth – a total of 8.9 per cent of the companies surveyed. This is followed by burglar and intruder alarm systems, at 7.5 per cent, security services, at 7.1 per cent, and motion control equipment, at 4.5 per cent.

It predicts sales growth – the percentage change in sales from last year – of 129 per cent for security system installers, with 4.5 per cent of companies in the sector increasing sales by 10 per cent or more.

The report also predicts sales growth of 128 per cent for 'security services'. A total of 7.1 per cent of companies surveyed beat 10 per cent sales growth. CCTV is predicted to experience 53 per cent sales growth in 2006, with 39 per cent sales growth for burglar and intruder alarm systems.

The overall security market is predicted to experience 234 per cent sales growth in 2006, with 5.2 per cent of companies experiencing 10 per cent or more growth.

"Any investor will clearly want to deliver a return on their investment," the report says. "A typical average return for a burglar and intruder alarm systems company is 7.2 per cent – that is, for every £1 invested, a return of 7.2p per year. A more serious investor would be looking to return at least 10 per cent on their investment."

Security system installers, according to the report, offer a 7.8 per cent return on investment, with 190 companies of 998 surveyed beating 10 per cent return on investment.

The sector with the highest return on investment of those included in the report is security services, at 11.5 per cent. Fire alarm systems are at 10.9 per cent, door entry systems are at 9.4 per cent, access control is at 7.5 per cent, while CCTV is at 5.6 per cent.