Operating profits realised by the leading security companies have soared to an average of GB pound 690,000 during the last three years, while total sales have increased by a healthy 24% to an average of GB pound 16.4 million. These are the major findings of ‘The Security Industry’, a Business Ratio Report compiled by The Prospect Shop.
The report, which analyses and compares the financial performance of no less than 125 leading firms (those where 50% of turnover is generated directly from activities relevant to the security industry), states that the period 1997-2000 has been "an encouraging one" for the top security concerns.
Compound sales growth for the survey period stands at 11%. The best individual company performance was recorded by Comparex (UK) (at 480%), followed by well-known ‘Top Ten’ manned guarding contractor Securiplan with 334%.
Interestingly, average total debt to net worth figures over the three-year review period have improved significantly for the industry as a whole – in spite of the fact that they remain at a fairly high level – from 232% in 1997-1998 to 183% by 1999-2000.
The Prospect Shop’s figures also pinpoint an improved ‘average profit per pound of pay’ (albeit at a marginal rate, from GB pound 0.07 in 1997 to GB pound 0.10). Group 4 Falck Global Solutions and access controls specialist PAC International had the best results at GB pound 18.71 and GB pound 1.97 respectively.
The average pre-tax profit margin for the industry as a whole stands at 4.5%, a rise of 1.1% on 1997’s result, while average return on capital has risen more significantly – from 10% in 1997 to the 2000 estimate of 16%. In addition, the average pay per employee now stands at GB pound 15,002 ( GB pound 13,508 in 1997).
Of the ‘Top Ten’ companies in the survey – which includes the Tunstall Group, White Group and the aforementioned PAC International – Photo-Scan emerged the overall ‘winner’, posting a pre-tax profit margin of 42% in 1999-2000 (over nine times greater than the average industry result of 4.5%).
