Sunday, June 04, 2006

Profiting From Crime

The Major and I have been arguing for some time that cost effective justice requires doubling our 80,000 prison places. So it's good to see Britain's investors lining up to supply the finance:

"There are around 140 British gaols, of which just 11 are privately run; eight of them were built under the Private Finance Initiative. According to HM Inspector of Prisons, many of the private sector prisons are among the best run in the system. Private operators have shown the Government how to construct and manage prisons efficiently: prisons used to take 12 years to build - now they take nine months."

Now pay attention all you soft-hearted liberals out there worried about your pensions: here's how you should be investing that self-select ISA:

"Britain is the second largest private prison market in the world, and likely to be the fastest growing in the coming years. The major UK players are Serco, Premier Custodial Group, Sodexho, UK Detection Services, Group 4 Securicor and GSL, which is owned by Englefield Capital and Electra Partners. Serco, Group 4 Securicor and Sodexho are quoted companies - the first two listed in London. However, their prison management activities are a small segment of their operations. There are currently no pure-play UK investments poised to take advantage of the coming prison boom. New operators may become involved: GEO Group, the world's largest operator of "privatised correctional facilities", has been in the UK for just 18 months and now runs an immigration centre. Obviously, the company has major ambitions. Revenues and profits from such sources are long term and stable, and they service a growing market - sadly."

Sadly? Sounds like a no-brainer.

Get onto your broker and buy while stocks last.

Please note: Tyler Investments (Lagos) is not regulated by the FSA. The value of investments can go down and out. Your home and family may be at risk if you act on anything you read here.

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