Acquisition
March 31 2003 - 1:01AM
UK Regulatory
RNS Number:3904J
SectorGuard PLC
31 March 2003
SectorGuard Plc (or 'the Company')
ACQUISITION OF UK GUARDING
Highlights:
* Acquisition of the London division of UK Guarding Services Ltd
* Group turnover increases by another #1.2 million
* Second acquisition in 2003
* Part of SectorGuard's active on-going expansion strategy
SectorGuard Plc, the AIM listed manned guarding provider has acquired the London
division of UK Guarding Services Ltd for an initial payment of #90,000 in cash.
Further consideration will be payable over the next 12 months dependant on the
performance of the acquired contracts.
The London division of UK Guarding, which has a #1.2 million turnover, provides
comprehensive manned guarding services in three main sectors; Local Housing
Authorities, Law Courts and distribution businesses. The Local Housing Authority
and the distribution businesses are synergistic with the Company's existing
client base whilst the Law Court contracts provide the Company with valuable
entry points to this sector. .
SectorGuard Chief Executive David Marks said: "UK Guarding boasts a solid client
base with long term contracts in key areas. Importantly the acquisition enables
us to extend our work in the residential arena where we have previously had
notable success. Residential security is becoming a major issue and it is our
aim to be at the forefront of this rapidly expanding market. Furthermore the
acquisition enhances our presence in London and the provision of security to the
Law Courts not only opens yet another avenue of business but also further
broadens our service offering.
The security industry is an extremely fragmented sector with hundreds of smaller
companies operating throughout the UK. Our growth strategy draws together these
smaller enterprises under one roof, cutting overheads and running costs whilst
retaining high service standards. We remain committed to exploring all potential
opportunities in the provision of manned guarding services. We already have an
established reputation with many blue-chip firms and local authorities and aim
to replicate this success in alternative areas such as the judiciary . This is
our second acquisition this year and we are in talks with other potential
targets."
Following the announcement of the Company's results for the year ended 30
September 2002, wherein the Company reported Operating Profit of #595,000 and
Profit before Tax of #502,000, the conditional bonus issue of 25,000,000
ordinary shares in the Company has become unconditional and they are being
issued to the founder shareholders of the Company as disclosed in the Company's
prospectus dated 8 March 2002.
Under the conditional bonus issue, David Marks will be issued with 7,500,000 new
ordinary shares and the Morton 1998 Trust, of which David Marks' minor children
are beneficiaries, will be issued with 3,000,000 new ordinary shares. Following
such issue, David Marks will be interested in 36,750,000 ordinary shares,
representing 19.9 per cent. of the issued share capital of the Company.
Mr B Myers and Mr D Sullivan, former Directors of the Company, are each being
issued with 3,750,000 new ordinary shares under the bonus issue. Following such
issue they will each be interested in 13,125,000 ordinary shares representing
7.1 per cent of the issued share capital of the Company.
Application has been made for the 25,000,000 new ordinary shares to be issued
under the bonus issue to be admitted to trading on AIM. Dealings are expected to
commence on AIM in those shares on 3 April 2003.
Application has also been made for 16,190,476 new ordinary shares to be admitted
to trading on AIM. These shares have been issued by way of a placing to raise
#340,000 before expenses. Dealings are also expected to commence on AIM in those
shares on 3 April 2003.
SectorGuard, founded in 1998, supplies manned guarding solutions for an
expanding range of clients including Shell International, The Bank of America,
The International Press Centre, the London Borough of Camden, CGNU and Sun Life.
Its services encompass static guards, mobile patrols and key holding and alarm
response.
ENDS
Contacts:
David Marks SectorGuard Plc Tel: 01279 724 777
Hugo de Salis/Isabel Crossley St Brides Media Tel: 020 7242 4477
This information is provided by RNS
The company news service from the London Stock Exchange
END
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