The report from business analysts Plimsoll Publishing also found that 15% of companies in the manned industry are operating at a loss.
They claim money is being thrown away because of companies’ failure to control their losses and manage their businesses effectively.
Plimsoll go on to say that 208 of the UK’s 281 manned security firms would make more money under new ownership.
Senior Analyst on the project, David Pattison said:
“These results prove just why the manned security industry is currently hot with takeover talk and speculation about future ownership. It’s certainly no surprise that trade buyers and private financiers are taking a close look at the industry- some of these businesses have huge potential that is not being realised at the moment.”
He continued: “We’ve heard a lot about private equity firms recently, and this is one industry where they could reap rich rewards.”
The report says there are several ‘classic strategies’ that companies are failing to adopt to protect their profits.
Cutting out unprofitable sales, keeping control of trade debtors and reducing borrowing are all cited as important steps towards financial health.
