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Some 17 companies in the UK access control industry have what industry analysts call ?reckless management?. So claims the latest Plimsoll Analysis.
Some 17 companies in the UK access control industry have what industry analysts call ?reckless management?. So claims the latest Plimsoll Analysis, (third edition, 2002). Plimsoll’s latest analysis shows 177 companies in the security industry, financed by what the analysts describe as high debts and focused on the euphoria of market share. These companies deliver a growth of 26.5 per cent on average; yet return only minus 5.1 per cent average margin. Ten of these companies are currently loss making. David Pattison, Senior Analyst at Plimsoll, says: ?Recent corporate collapses like Enron and WorldCom were blatant examples of reckless management driven by over-ambitious managers opting to take on great risk from high debts.? The report also highlights 16 companies that while amongst the most profitable in the sector seem to Plimsoll guilty of what the analysts call ?cautious management?. Despite ten companies now making more profit than they were two years ago, they have accepted a lesser share of the market. In fact, at seven companies have seen sales drop by more than 10 per cent in the last two years. Pattison adds: ?It’s not the quality of information available but knowing what to look for. For Enron and Worldcom fraud was simply the final symptom, not the cause. Business leaders need to understand the whole company to make an informed opinion, not just single numbers thrown around.? The top 155 UK security companies are covered in the Plimsoll Portfolio Analysis, third edition 2002. Order your copy for œ305 by calling 01642 626400. Visit www.plimsoll.co.uk Readers of this publication will receive a five per cent discount if mentioning this article on ordering.