A new report claims that while there are signs of recovery in the UK burglar and intruder alarms systems industry, this is due mainly to the top 16 of the UK's 50 largest companies.

And the report warns that up to 500 jobs could be lost from companies that have to consolidate during financial distress.

• The top 50 companies enjoy a dominant position in the market, accounting for 91 per cent of the total burglar and intruder alarm systems sector, up from 86 per cent four years ago," the report from Plimsoll Publishing says. "As a group, they are gaining more control of the market. Yet look within these leading players and it is clear that a minority of 16 companies are responsible for this tightening grip."

In the last four years for the top 16 companies, sales have increased by 58 per cent, profits have improved by 324 per cent, and staff levels have increased by 18 per cent.

Plimsoll senior analyst David Pattison said: "These 16 companies are setting themselves apart from the other major players, who look tired by comparison. You don't pull in financial results like this, over such a length of time, by accident! They are telling us something about the direction of the market, a sort of elite resurgence."

Pattison said the comparison with the other 34 of the top 50 UK companies is stark. At these companies over the last four years, sales increased by 9 per cent, profits have fallen by 11 per cent, and staff numbers have remained flat.

The report suggests three future business scenarios for the UK's top 50 companies. "Sixteen companies, already in an excellent position, are primed for a period of growth. An expansion plan for these ambitious companies puts their future market share well beyond their current performance. Twenty six companies have their work cut out to get their principal business on a firm financial footing. A demonstrated strategy, if followed, shows how the values of these companies could double in a year. Eight companies are facing financial distress. Their safest option is a period of consolidation where up to 500 jobs could be lost - essential if they are to come to terms with their latest position in the market."

Plimsoll has also released a report suggesting that a similar situation exists in the security industry as a whole, with only 22 out of the top 100 companies establishing a strong hold on the market.

• Reports available from m.aston@plimsoll.co.uk, or by calling 01642 626400.

Source

Security Installer