Profitability of sales of the largest Russian security providers

ranking 15/03/2017

Information agency Credinform prepared a ranking of profitability of sales of the largest Russian security providers. Companies with the highest volume of revenue (TOP-10) were selected for this ranking according to the data from the Statistical Register for the latest available periods (2015 and 2014). The enterprises were ranked by decrease in profitability of sales (Table 1).

Profitability of sales (%) is calculated as a share of operating revenue in total sales of the company. Sales profitability ratio indicates the efficiency of production and commercial activity, and shows funds volume resulting from sales of products after production costs, taxes and loan interests.

Profitability of sales presents the efficiency of pricing policy and management’s ability to control costs. Difference in competitive strategies and product ranges defines the variety of sales profitability values of companies within the industry. That is why it should be noted that profitability of sales of two different companies at equal values of revenue, operating costs and profit before tax could vary influenced by interest payments on net profit value.

For the most complete and objective view of the financial condition of the enterprise it is necessary to pay attention to the complex of presented ratios, financial and other indicators of the company.

Table 1. Net profit, revenue, sales profitability ratio, solvency index Globas-i® of the largest Russian security providers (TOP-10)
Name, INN, regionNet profit for 2015, mln RUBRevenue for 2015, mln RUBRevenue for 2015, mln RUBProfitability of sales, (%)Solvency index Globas-i®
PRIVATE SECURITY ENTERPRISE AGENCY LUKOM-A-WEST SIBERIA LLC
INN 8608051652 the Khanty-Mansi autonomous district - Yugra
83,54 1 285,64 4,28 7,72 158
The highest
PRIVATE SECURITY ENTERPRISE AGENCY LUKOM-A-NORTH LLC
INN 1106015062 the Republic of Komi
71,24 1 139,38 8,70 6,88 187
The highest
CENTURION-INTER PROFY LLC
INN 7724006715 Moscow
312,00 6 238,55 11,81 5,00 171
The highest
PRIVATE SECURITY ENTERPRISE AERO-GUARD LLC
INN 7709871219 Moscow
23,39 1 094,79 5,34 4,91 237
High
TRANSNEFT-OKHRANA LLC
INN 7728881149 Moscow
249,27 15 150,69 274,77 3,38 246
High
ALROSA-OKHRANA LLC
INN 1433018056 the Republic of Sakha (Yakutia)
1,04 1 161,69 7,78 2,58 251
High
PRIVATE SECURITY ENTERPRISE AGENCY LUKOM-A LLC
INN 7708234591 Moscow
494,28 1 427,83 3,58 2,31 159
The highest
PRIVATE SECURITY ENTERPRISE AGENCY RN-OKHRANA LLC
INN 7708105476 Moscow
201,91 1 434,09 3,16 1,70 177
The highest
PRIVATE SECURITY ENTERPRISE SAFETY-TEK LLC
INN 0277104063 the Republic of Bashkortostan
-12,83 1 677,12 -0,16 0,45 310
Satisfactory
PRIVATE SECURITY ORGANIZATION FOROS LLC
INN 6382026930 Samara region
-415,20 2 688,30 83 647,66 -9,44 291
High
Total for TOP-10 1 008,64 33 298,07 *80,17 *2,55  
Total for TOP-100 2 995,07 67 881,51 *48,81 **11,19  

*) - average value for the group of companies
**) – average value for the industry

Average value of sales profitability ratio for the TOP-10 in 2015 is lower than for the industry average. PSO FOROS LLC has negative value. Speaking about TOP-100, 5 companies also have negative values for 2015 and 9 companies are loss-making.

Net profit of TOP-10 companies in 2015 reduced by 24% to the previous period and increased by 27% in TOP-100.

Sales profitability ratio and revenue of the largest Russian security providers (TOP-10)
Picture 1. Sales profitability ratio and revenue of the largest Russian security providers (TOP-10)

Revenue volume of the largest 10 companies is 49% of total volume of the largest 100 companies. This indicates higher level of monopolization in the sector. At the same time it is necessary to consider that due to the specifics of activities security providers cooperates with the main Russian holdings such as PJSC TRANSNEFT, PJSC ROSNEFT OIL COMPANY, PJSC LUKOIL, PJSC ALROSA.

The share of TRANSNEFT-OKHRANA LLC, the largest company in term of revenue for 2015, amounted to 22% in total revenue of TOP-100 companies (Picture 2).

Shares of TOP-10 companies in total revenue of TOP-100 in 2015, %
Picture 2. Shares of TOP-10 companies in total revenue of TOP-100 in 2015, %

Nine companies in TOP-10 got the highest and high solvency index Globas-i® that indicates their ability to timely and fully fulfill debt liabilities.

PSE SAEFTI-TEK LLC has got satisfactory solvency index Globas-i® due to information about being a defendant in arbitration cases on debt collection, and loss in balance sheet figures. Index development trend is stable.

Four companies in TOP-10 (filled with red in Table 1) have reduced revenue volume or net profit in 2015, or have loss.

In general, figures of security providers from 2005 to 2016 are characterized with increase in revenue from services that is proved by the Federal State Statistics Service (Picture 3).

Revenue (net) from provided services (net of VAT, excises and other mandatory payments), mln
Picture 3. Revenue (net) from provided services (net of VAT, excises and other mandatory payments), mln

The largest increase in revenue from year to year was observed in 2006 and 2015 – by 48% and 42% respectively. In 2016 decrease by 2% was recorded.

Security enterprises are dotted across the country. This is confirmed by the data from the Information and Analytical system Globas-i: 100 companies with the highest revenue for 2015 are registered in 24 regions of Russia (Picture 4).

Distribution of the largest 100 companies by the regions of Russia
Picture 4. Distribution of the largest 100 companies by the regions of Russia