Security Watchdog managing director Terry O'Neil continues Security Management Today's ongoing series of one-to-one interviews with strategic players in the contract manned guarding industry by talking to security company SectorGuard plc's managing director David Marks.
Security Management Today (SMT): SectorGuard has successfully carried out a number of acquisitions in the manned guarding sector in recent months. Are you pleased with your purchases?

David Marks (DM): Yes, each acquisition has enhanced the service we offer, widened our client base and increased density of operations within our geographic region. Often, we've managed to retain key management staff as well as the security officers who have assisted in both the integration of the business being acquired and strengthened the team for the organic growth generated internally.

SMT: Are you on the lookout for further acquisitions and, if so, which part of the country will you concentrate on?

DM: We are constantly on the lookout for acquisitions that will enhance our ability to provide a high quality service to our clients. The geographic region is less important than the standard of officers and service offered by the vendor company.

Any business we acquire must employ fully-trained and vetted officers at appropriate rates of pay. This foundation allows us to build on our approach to client service, officer training and supervision, as well as complete assignment management.

SMT: The Security Industry Authority (SIA) has promised the introduction of an Approved Companies Scheme in tandem with licensing. When this is implemented there could be a huge number of companies on the market who, under normal circumstances, will not be able to make the grade. It could be a buyer's paradise. Do you think that might happen?

DM: The increased burden of legislation and regulation has often been cited as the prime factor leading to the consolidation of smaller firms in this industry. However, it hasn't usually been the factor that has led vendors to sell their businesses to SectorGuard.

I think there'll be a fall-out arising from increased legislation and licensing, and this should lead to further consolidation. I doubt if it'll create a buyer's paradise, though.

Some security businesses will not make for suitable acquisitions, while others may merge or form co-operative associations to find cost-effective solutions for coping with increased regulation. Pretty much the same scenario that has transpired in the financial services arena.

The prime benefit of licensing will be the further polarisation of the industry between the 'cowboys' and the professional operators. Clients will then be able to make an educated decision as to what kind of service provider they wish to use.

SMT: What do you think really differentiates a good contract security company from a bad one?

DM: The dedication to providing a professional service with equal emphasis on the words 'professional' and 'service'. Good companies will expend effort when it comes to risk assessment and assignment planning, then they'll recruit, vet and train appropriate staff and tailor those officers to specific site requirements.

Once the site is established, a good security company will manage that location effectively, with supervisory and management support for the security officers and the client. Any company that doesn't follow this ethos through will find it very hard to demonstrate that they're a good guarding concern.

SMT: If I were a client, operating in or around the M25 zone, could you convince me to use SectorGuard in preference to any other British Security Industry Association or IPSA-registered company?

DM: With all due respect to our business development team, the members of which are among the best of their kind in the country, we rank our clients, managers and officers alongside them as a combined sales team. Together, they proactively provide us with new work as a result of the efforts that our teams put into our existing sites.

Once you had met our team, I don't think I'd have any problem in convincing you to use SectorGuard.

SMT: What do you think of TUPE and its implications for a given security company that has just won a contract from one of its competitors?

DM: There's always going to be an argument for and against legislation, and while I can think of several cases where the operation of TUPE can appear to work against the client's best interests, the right of all employees to retain employment when a business is transferred from one entity to another is enshrined in law – and should be honoured as such.

To be honest, the problems we've encountered have usually arisen whenever the outgoing contractor has failed to either vet its security officers or has managed the team in such a poor manner that they're sceptical of the sincerity of the incoming management team.

Indeed, this latter example often leads to a larger-than-expected amount of management time to ensure that the team knits together to provide the client with the service they require.

There’s always going to be an argument for and against legislation, and while I can think of several cases where the operation of TUPE can appear to work against the client’s best interests, the overriding right of all employees to retain empl

SMT: In selecting security officers, what qualities do you and your team consider an 'essential' before offering them contracts of employment?

DM: As well as being 'vettable', all officers must be articulate, literate, numerate and able to portray the air of authority appropriate to their position as a security officer.

Specific positions will have other requirements which will be taken into account during the recruitment process.

SMT: When licensing is fully implemen-ted, do you think there'll be any need for screening of staff to BS 7858?

DM: Yes, most certainly. Licensing will only tell us part of the story. Information obtained during the screening process is often very useful in considering the employment of an individual, or in assessing the suitability of an officer for specific sites.

SMT: What subjects should be mandatory in any basic induction training course? For example, should there be a one-day First Aid module and a half-day fire awareness module as an integral part of the basic course?

DM: First Aid and fire awareness training are an important part of a basic induction training course. However, the most important part of any basic induction training must be defining the role of the security officer and the legal constraints placed upon an officer. For example, those concerned with arrest and restraint procedures.

Once the role has been defined, the training can take into account any number of areas including risk assessment, observation, communication and reporting. If more time is made available for training then these and other subjects can be covered in greater depths – thus empowering the security officer to carry out his or her duties efficiently.

In this respect we welcome the SIA's plans for increasing the minimum duration of basic induction training.

SMT: Is SectorGuard currently a member of either the British Security Industry Association or the International Professional Security Association and, if so, are you satisfied that you're receiving good value for your money? If you're not a member, what would they have to do to persuade you to join?

DM: We are currently a member of the BSIA and, yes, we do receive good value for money.

As with most things in life, the more you put into something the more you get out of it. Trade Associations are no different in this respect. A security company can choose to play an active role in the development of its industry – and Trade Associations are an excellent forum for doing so – or indeed may adopt either a passive or reactive role.

From my point of view I like to think of SectorGuard as a proactive industry leader. We very much enjoy our participation in trade-related organisations.

SMT: What's your ultimate aim for SectorGuard as a company, David? Do you want to become one of the majors, or are you happy to merely be recognised as 'simply the best'?

DM: Without sounding too arrogant, why should SectorGuard becoming one of the majors change our position of being one of the best service suppliers?

All members of the management team believe in continually improving our standards of service and operation.

Our dedication to service is unsurpassed, and we firmly believe that we'll continue to grow and to challenge those companies that are larger than us without losing touch with our officers or clients.

SMT: Finally, David, you're a Chartered Accountant by profession, and have previously been highly successful in that arena. What attracted you, then, to the world of contract security?

DM: The two industries are very similar in that they both sell labour, albeit at different price points. What intrigued me about contract manned guarding was that every time I, or indeed one of my accountancy clients tried to buy a service we felt that there was either a lack of attention to the service element or the security element.

All you need to know about... David Marks

David Marks formed SectorGuard in October 1998, and has since grown the business from a small private company turning over £2.5 million in its first year of trading to one that’s now quoted on the Alternative Investment Market with a turnover of £7.4 million for the year ended 30 September 2002, and profit in excess of £500,000. Since last year, SectorGuard has acquired the manned guarding contracts of Gainsborough Security Services, UK Guarding’s southern division and London Alliance. The company has also established itself within the Top 30 manned guarding contractors in the UK. David is a Chartered Accountant and, having qualified, spent several years in industry and commerce in addition to running a corporate finance ‘boutique’. He advised a number of businesses on corporate strategy and development, and in 1998 decided to take on the role of principal rather than adviser – and subsequently raised an equity fund to launch SectorGuard. In addition to his interests with SectorGuard, David is also the managing director of SectorAlarm Ltd (a company he formed in 2000 that specialises in installing and maintaining electronic security systems).