While growth in the UK security market was a was a healthy 6 per cent in 2006 – well above inflation – more than two thirds of the of the companies monitored by Plimsoll Portfolio Analysis saw a fall in sales.

This indicates that much of the growth is being shared by a select band of firms, says the research company, who looked at 1501 companies.

In 2007, this trend is set to continue, says senior analyst David Pattison. "I see growth slowing in the coming 12 months although still above 5 per cent, with the small group of market leaders again capturing the lion's share and the others increasingly playing catch-up." Overall margins in 2006 were 4 per cent , with some companies enjoying a record 20 per cent or more.

"But I believe these margins will be squeezed in 2007, and at least a third of companies in the sector will lose money.

Pattison added: "This, of course, will have an effect on directors' fees. Where these increased, it was well above the rate of inflation in 2006, averaging 17 per cent on the previous year. Things will be tighter between now and next December.

The complete publication contains an individual analysis of each of the 1501 companies in this sector and sets out their challenges for the next 12 months.

Source

Security Installer

Postscript

Copies £300 from www.plimsoll.co.uk or email c.sherwood@plimsoll.co.uk . Quote reference PR 12.