GuardTek is the owner and distributor of the leading software solution to monitor security activities. GuardTek products are currently used in more than 2,000 sites in 15 countries by more than 15,000 global users. GuardTek proposes value-added security management services solutions to its clients, accessible from any Internet-connected device.
GuardTek is a double-digit, growing company, owned and led by its founder. GuardTek security solutions address a specific market opportunity: rising demand for mobile monitoring technologies and remote guarding systems in the security industry. Users enhance productivity and have demonstrated improvement of service quality and increased customer retention.
Because of its subscription business model, GuardTek enjoys (i) high annual recurring fees, (ii) good visibility on cash-flow (clients comply with payment terms or service is discontinued) and (iii) it is both profitable and successful.
In 2012, the combined companies achieved annual revenues of $3.1M, with $326K EBITDA and $616K in net income. For 2013, combined annual revenues is growing by 26% to $3.9M, with $683K EBITDA and $731K net income.
GuardTek is at a turning point. With a profitable client base and successful well-known technology, the group is seeking $2M financing to accelerate expansion, develop new products and consolidate its leading position on the market.
GuardTek enables security directors and security providers to maintain around-the-clock monitoring of security activities, across all time-zones, and get instant charts, reports and alerts through a single web-based interface. Information is collected in different ways depending on the sites and on the type of business – through an Internet browser on a computer, using off-the-shelf smartphones or tables, or specialized rugged mobile devices. The software aggregates the information and delivers a real-time, global view of all security activities at all locations.
GuardTek is deployed on a subscription basis in SaaS mode (service as a software) through an encrypted web access on secure company servers. The software cannot be copied and is easily upgraded. This enables clients to gain immediately access to the product and its benefits without heavy capital investments.
- GuardTek Patrol: a real-time, interactive guard tour system
- GuardTek m-Post: a real-time, interactive guard tour system with activity and incident reporting systems
- GuardTek Inspector: near real-time field inspection and Q&A systems
- GuardTek Post: real-time security post management system
GuardTek currently proposes four types of trade names subscription services to clients: Patrol, m-Post, Inspector and Post. Each application encompasses a variety of capabilities, all of which can be easily adapted to client requirements.
Who are our customers / the market
As GuardTek solution is fully flexible and self-customizable, we are addressing a very large variety of customers.In fact, every mobile workforce would potentially be able to work with GuardTek.
We are now mostly addressing 2 types of customers:
- Security contractors, who include our solutions in their service offers. Not only received as a competitive advantage, as they are able to streamline communication with their customers, it is also perceived as a productivity-gain solution for their own operations. We are now serving most of the largest worldwide security companies (G4S, Brink’s, Securitas, ISS, Allied Barton…), but also several mid-size businesses.
- Large companies, who are trying to improve security efficiency and better control their own security staff of contractor staff. The most interesting value for them is the capability to standardize and to gather all the information in one single web-based and secure platform. Among our customers, we have: Fedex, Paramount, University of Maryland, Siemens, Toyota…
They are using our solutions in very different type of business. From warehouses to oil industry, from airport security to malls and government buildings and banks, our solutions are made to work in any type of security activities.
Regarding the global security market, it continues to grow at a sustained pace, five per-cent (5%) in 2012. However, in Europe and the US, where GuardTek has the majority of its sales, the market growth was more or less flat. In these markets, strongly characterized by low value creation, strong competition and high price transparency, technology is a key success factor. Clients want and need to optimize guarding and security services and to improve cost-effectiveness by reducing labor expense. Users seek a balance between on-site guarding, telecommunications investments, and what can be achieved by enhancing remote monitoring options.
GuardTek’s software solutions address all these quantifiable customer demands. Besides, only 5% of the users of security services are supposed to be equipped with it for their operations. Strong market interest combined with low acquisition and ongoing costs of operation presents a huge market opportunity.
The CEO expects an annual increase in revenues of between 45% to 59% from 2014 to 2016.
Past N-1 revenues are recurrent and almost certain. In 2014, the company expects to sign $2,100K of new contracts, which represents 3.6 times more new contracts than in 2013. In 2015, 2016 and 2017, the ratio is expected to be 1.6x, 1.2x and 1.2x, respectively.
To reach these objectives, the group will hire new people in France and in the US until 2017.
In France, the CEO plans to hire one project director, two VP of sales (one dedicated to the security service contractor market and one to end users) and four technicians. The project director will coordinate the commercial team and be in charge of large accounts, airports or multinational deployment. Technicians are important to support new business on a daily basis, answer phone calls, emails and interact between the clients and the R&D team.
In the US, the group intends to hire 15 new people until 2017. A new office manager will help the CEO in his day-to-day, non-strategic tasks (invoicing, payment collection, organization of travel, etc.). A new marketing manager will be in charge of organizing shows, advertising, customer communications, and the website. Five sales people will be hired to grow business with end-users and security providers in the Americas and Asia. Three technicians will be hired to setup new contracts. Eventually, the company expects to hire five R&D specialists to improve existing solutions, fix bugs, and ensure the entire GuardTek platform performs to expectations. The technical staff will also work on specific improvement requests and develop new innovative solutions.
Participation at selected industry trade shows will be another objective of the group’s development. The CEO has identified a number of events that target end-users, resellers and service providers.
Eventually, advertising represents another opportunity to grow the business. Most of the projected expense is dedicated to online channels.
The conversion rate from leads to customer is high. Around 25% of the people met by GuardTek turned into customer within six months. Conversion rate of prospects met in person increases to 65%.
How We’re Different
GuardTek competes with a very limited number of companies on this fast growing niche market. GuardTek is growing at a very fast pace, by 26% 2013. GuardTek is the only market leader able to provide services through all the operating system platforms. While most competitors offer similar features like guard tour reporting and incident management, very few are able to facilitate services on both iPhone and Android mobile device platforms. GuardTek is the only integrated application supplier offering a complete range of services on multiple devices.
Innovation has always been a key strategic driver for GuardTek.