This time last year we described 2003 as the year of laying foundations, we believe that 2004 was more about realization. The industry has become aware of the task ahead and how much effort will be needed to ensure the industry develops to its full potential.
If we were in the kingdom of the birds we would be able to identify the reaction of companies operating in the industry into three distinct bird types:
The Eagles, they are soaring ahead of the game, having spoken to their customers securing increases from January 2005 in the region of 2-3% and have set in place twelve month training and licensing processes.
The Ostriches, they are in a state of denial and don’t believe that regulation will actually take place, continuing their activities as normal.
The Pigeons, doing what pigeons do best; sit on a high place and create a mess. They are talking about regulation, complaining about it, but are too scared to implement it for fear of upsetting their customers and workforce.
In our scenario we believe only the eagles will survive with ease, the ostriches will suffer the fate of the Dinosaurs and the pigeons will have a metamorphosis into Eagles or also face extinction!
INFOLOGUE.COM TOP 20 TABLE OF UK MANNED SECURITY COMPANIES
2004 witnessed the birth of the first UK Super Guarding Company with the merger of Securicor and Group 4 turning over annually in the region of £340 million per annum. We believe that the market strategy that Group 4 Securicor adopts will significantly influence the shape of the market over the next three years. Resolution Security (Infologue.com Top 20 2003 Ranked 19 Estimated Turnover £22 Million) was acquired buy OCS Ltd (Infologue.com Top 20 2003 Ranked 10 Estimated Annual Turnover £46 million). Whilst OCS had a high Business Support Services profile its industry brand awareness appeared to be low. The Resolution acquisition plus some high profile contract gains have raised the awareness of the OCS brand significantly. Another major deal in 2004 was the acquisition of First Security (Guards) Ltd by the AIM listed McLennan Group who also acquired Attlaw Security & Protection Ltd in December 2003. Another company on the acquisition trail was AIM listed SectorGuard plc who acquired the contract bases of Abbot Security Services Ltd, Nationwide (GB) Ltd and Choice Security Services Ltd adding another £2.5 million to their annual turnover. This leaves SectorGuard plc just outside of the Infologue.com Top 20 list of UK Guarding Companies. Consolidation gained pace during 2004 increasing the annual turnover base of the Infologue.com Top 20 by £142 million. Whilst a large portion of this increase is due to acquisition, it would appear that the Top 20 is growing organically as well and could have added as much as £60 million. (This figure excludes consolidation and adjustment of figures based on more accurate information) Due to the lack of formal statistics, it is difficult to actually gauge the size of the industry or the actual number of companies operating in the industry. This is further aggravated by the number of companies who are turning over less than the required level to file full accounts. Through ongoing research we believe we are moving towards a realistic understanding of the statistical breakdown of the industry. Based on the foregoing health warning our current industry estimates are:
Estimated number of UK Manned Security Companies: 2476
Estimated annualised Turnover of Manned Security Industry: £2.1 Billion
Our Infologue.com Top 20 Companies List for 2004 is:
INFOLOGUE.COM TOP 20 -2004
|Ranking 2003||Ranking 2004||Company Name||Est Turnover||Estimated Market Share|
|1 & 3||1||Group 4 Securicor||£343,000,000||16.33%|
|1||2||Reliance Security Services||£190,000,000||9.05%|
|4||3||Initial Security Ltd.||£132,000,000||6.29%|
|5||4||Chubb Security Personnel Ltd.||£108,000,000||5.14%|
|7||5||Securitas Security Services Ltd.||£85,000,000||4.05%|
|10||7||OCS Resolution Ltd||£73,000,000||3.48%|
|9||9||Corps of Commissionaires .||£50,000,000||2.38%|
|11||10||First Security (Guards) Ltd.||£47,000,000||2.24%|
|13||12||Vision Security Group Ltd||£42,000,000||2.00%|
|16||11||The Shield Guarding Co. Ltd.||£39,000,000||1.86%|
|15||13||Pegasus Security Ltd||£35,700,000||1.70%|
|13||15||ICTS UK Ltd||£33,000,000||1.57%|
|18||16||Wilson James Ltd.||£32,000,000||1.52%|
|17||17||Legion Security Plc||£29,000,000||1.38%|
|20||18||Temple Security Ltd.||£22,000,000||1.05%|
|New||19||Carlisle Facilites Services Ltd||£20,000,000||0.95%|
|New||20||Frances Clarke Ltd.||£18,500,000||
The above table is based on estimates and historical published data of annual turnover and should be viewed only as a guide to the approximate size of the largest companies in the manned security industry. The turnover is calculated on annualised basis as of November 2004 and relates to the Infologue.com definition of the provision of manned security services. Some companies have non related areas of business in their statutory accounts which Infologue.com attempts to estimate and factor out of the estimated turnover. Whilst most companies are now providing information on turnover to Infologue.com all figures will not be accurate as statutory information can be up to two years out of date. The MacLennan plc Security Portfolio has an estimated annual turnover of £72 million. However, this business runs independently of First Security Guards Plc. Therefore these figures should be treated with caution. Movement in the rankings may reflect the use of more accurate and up to date data and not significant change in turnover. Infologue.com welcomes input from the companies in the Infologue.com Top 20 and will change the figures on request provided we have no information to the contrary.
REGULATION OF THE SECURITY INDUSTRY IN 2004
Regulation of the Security Industry started in 2004 and the first sector to become regulated was Door Supervisors. To date the Security Industry Authority has 10,900 valid licence applications which are being processed, 5300 licences have been granted with the rejection rate running at around 5 per cent. Rejection rate is running in the region of 5% with the majority being rejected on the grounds of a criminal record. Door supervisors – Including the start-up area there are nine regions. Robert Buxton of the SIA told Infologue.com “Of those nine, the legislation has been enacted in six regions with three to go – East, South East and London. The offence date was extended in two areas – South West and Wales. Both extensions were in response to an administrative delay in posting out DS licence application packs. So far there have been four prosecutions for working with a DS licence (all on the Isle of Wight). Other prosecutions are pending.” Training criteria for the Security Guarding Sector were issued by the SIA and the licence for doors supervisors was extended to cover the Security Guard licence as well. It was also announced that the SIA Approved Contractors Scheme (ACS) would be a voluntary scheme. Infologue.com requested that the SIA consider making the ACS mandatory for Vehicle Immobilisers. The SIA response was: Your editorial and concerns were noted and widely circulated within the SIA. I know you are aware of work going on at the SIA, including the ACS, and our plans to transform the Private Security Industry. There are currently no plans to make the ASC compulsory for any sector because we believe that the ACS should be a hallmark of quality to aspire to. The Infologue.com view remains that whilst the Vehicle Immobiliser sector is being included is the Security Industry it has a different shape to other sectors within the Private Security Industry requiring different solutions. SEE EDITORIAL: FRESH LOOK AT THE ACS IN RESPECT OF CLAMPING NEEDED
BILL MUSKIN – INFOLOGUE.COM PERSON OF THE YEAR – 2004
Unlike other industry awards the Infologue.com Person of the Year Award is an award where we select a person from the industry, who we believe has added value to their organisation and the security guarding industry as a whole. In 2003 we chose David Dickinson of the British Security Industry Association. This year we asked the Editor of Security Management Today, Brian Sims to assist with our selection. This year we have selected a man who has lead a team to develop a significant guarding business with a high people development and quality of service component; Bill Muskin of Northampton based VSG. Bill Muskin has also actively entered the Regulation debate striving to ensure the best for the industry and its customers. SEE APPROVED CONTRACTORS SCHEME – ARE WE PUTTING THE CART BEFORE THE HORSE? ASKS BILL MUSKIN MD VISION SECURITY GROUP Over the past four and a half years VSG has grown from a start up company to a business turning over £42,000,000 per annum. Along the way the company has received the following accreditations and awards:
In 2002 and 2004 VSG collected the award from SITO for the company that demonstrated the ‘most outstanding training practice within the industry’. Also in 2002 the training manager was given the award as the best trainer and receiving the Open Palm Award for best training partnership delivering Conflict Management Training rounded off the year. Also in 2004 at the SMT awards VSG won two awards for the best customer care initiative ‘C2Q’ (commitment to quality) and the best customer partnership with Colin Moore, Head of Security for Exel. At the same awards both in 2003 and 2004 VSG has reached the finals for the best Guarding Company.
Bill, who retired from the Police in 1991, started in the security industry as an operational manager and rose rapidly to a Board level position. In 2003 Bill was invited to Buckingham Palace to meet HRH Queen Elizabeth during an evening to recognise the ‘Pioneers of the Nation’ when Bill was given the accolade of representing individuals who had significantly contributed to business. Bill has also supported local crime initiatives and sat as a board Director on ‘The Northampton Police Coalition against Crime’. He is also an active member of the Company of Security Professionals.
Our final act of 2004 is to wish you, our subscribers an enjoyable festive season and a successful 2005.