Report highlights ‘wide gap’ in intruder firms

The report, by industry analysts Plimsoll Publishing, names the 13 companies as ‘best trading partners, and says they are “getting both their commercial and financial performance right”, and “delivering measured profitability and manageable sales growth while keeping any debts under control”.

Companies named in the top 13 include Reliance Security Group Plc, MJ Quinn Integrated Services Ltd and Banhams Patent Locks Ltd.

Plimsoll senior analyst David Pattison said: “These are really the companies you would do well to have as customers or be doing business with. If you are looking to see how a burglar and intruder alarm systems company should perform, then look no further than these 13 great businesses.” The report says that eight companies are “aggressors”, having achieved an average sales growth of 42 per cent, compared to 7 per cent for the industry last year.

As a group, they have increased sales by over £36m in the last year.

A total of 25 companies in the report averaged 9.4 per cent margins, compared to the industry average of 4.9 per cent. “They benefit from a combination of good cost controls and low debts, hence low or zero interest payments,” Pattison said. He also points to 23 companies mentioned as being the most efficient. “With figures like £71,000 sales per employee typical, these companies have set new standards of productivity for others to follow.”

But the report also points to results which are not as positive. It says that five companies are losing out in the market and suffering financially. “Typically, sales have fallen by 3.1 per cent and they are losing money,” Pattison says.

He says three companies are showing serious signs of financial strain. Nine companies in the list are losing money, but have high earning potential. Another two have elected to capture market share, funding this growth with debt. “Whilst the risk associated with this strategy is high, there can be a serious short term disruptive effect in the market,” Pattison says.

“I think what this analysis proves is the widening gap between these leading companies. There are some terrific performances out there mixed in with some very disappointing ones. The difference is blatant.”