An analysis of the UK’s 200 largest security companies offers encouraging news, with overall values rising one per cent and 108 of the companies included raising their values by a massive 26 per cent.

The report, from industry analysts Plimsoll Publishing, says: "This is a direct result of improved profitability and a conscious effort by their managers to place their companies on a firm financial footing. These companies are building a solid foundation to further enhance their values in 2007.

"Sadly, not all of those valued in the study have prospered, as 91 of the companies have seen their value fall, on average by 21 per cent. Twenty-two of the largest UK security companies have seen their values plummet, falling by 50 per cent in the review period."

The study also includes a critical assessment of each of the 200 companies' strengths and weaknesses. David Pattison, senior analyst at Plimsoll, said: "In the study we have taken a long term view and looked at each of these companies over the last four years. No wonder there is so much acquisition speculation in the market when the valuations change so rapidly from year to year.

"There are eight companies that really stand out in the analysis for their classic acquisition potential. Blatantly undervalued, they have the potential to double in value, if staff costs, debts and other expenses are brought under better control.

"These companies are likely to attract interest from private equity predators as well as industry buyers amongst the 200 largest companies."

Copies of the publication are available for £500 by calling 01642 626400, visiting www.plimsoll.co.uk, or by email from c.sherwood@plimsoll.co.uk. Security Installer readers will receive a five per cent discount when booking online by quoting the code PRO1.