RNS Number:7880M
SectorGuard PLC
26 June 2003
SECTORGUARD PLC ("the Group")
INTERIM RESULTS
Interim Results from SectorGuard plc, the AIM listed manned guarding solutions
provider, for the six months ended 31 March 2003.
Overview:
*Pre-tax profits up 219% to #211,437 on turnover of #4,528,045 up 52%
*Strong cash position of #667,787 at bank
*Net current assets up 202% to #1,298,846
*Continued growth both organic and through strategic acquisitions
*First Response Security Services acquired on 20 June, anticipated to add
another #1.4 million per annum to the Group's turnover
CEO David Marks said: "These are good results for us. Our business model of
organic growth and strategic acquisitions has continued to produce increased
profits, turnover and assets. We have made four acquisitions this year, which,
through improved economies of scale and enhanced efficiencies, are contributing
significantly to our success. Emphasising our achievements, analyst Plimsoll
Publishing Ltd recently ranked us the 24th largest and 8th most profitable
manned security company in the UK."
Chairman's Statement
I am pleased to announce our results for the six months ended 31 March 2003,
which show pre-tax profits up 219% to #211,437 (2001: #66,189), turnover up 52%
to #4,528,045 (2001: #2,984,826) and net current assets up 202% to #1,298,846
(2001: #429,867). At the end of the period we had a strong cash position of
#667,787 at bank.
The current year has begun well with the figures reflecting the progress we have
achieved. In line with our business model we continue to expand the Group both
organically and through acquisition to become a major provider of manned
security solutions in a traditionally fragmented market.
We now have an extensive client base of local authorities, large corporations
and landmark sites, which have enabled us to establish a reputation of providing
high quality, manned guarding solutions at cost effective levels. This success
has been reflected in a recent survey by financial analyst Plimsoll Publishing
Ltd, which placed SectorGuard 24th in size and 8th in profitability in an
analysis of the top 50 UK manned guarding businesses.
We are constantly looking for new business opportunities. In line with this
strategy, we have acquired four businesses in the past six months, reinforcing
our position as a leading service supplier in London and the Home Counties and
giving us further presence outside our core geographic area. Three of the
acquisitions will impact the business in the second half of the year.
Our most recent acquisition, First Response Security Services, added an
additional #1.4 million annually to our turnover. It also provides further
critical mass in the London market and builds up our growing presence in the
Midlands.
During the first half of the year we raised in excess of #1.25 million through
the placing of new ordinary shares with institutional and other investors. This
has provided working capital as well as the funds with which to take advantage
of acquisition opportunities as they arise.
We believe that to retain a high quality of service delivery, it is important to
invest in our employees. We operate an intensive training system for all our
staff and also offer all employees the opportunity to participate in a company
share option scheme.
The second half is showing progressively healthy business volumes, so we look
forward to the future with confidence. We believe the strength of our service
offering coupled with the financial stability we enjoy will stand us in good
stead and hope to report further progress in our year-end statement.
Peter Gorty
Chairman
26th June 2003
Profit and Loss Account
For the six months ended 31 March 2003
Six months Six months Year ended 30
ended 31 March ended 31 March September 2002
2003 2002
(Unaudited) (Unaudited) (Audited)
# # #
Turnover 4,528,045 2,984,826 7,373,705
Cost of sales (3,590,447) (2,471,271) (5,840,495)
_________ _________ _________
Gross profit 937,598 513,555 1,533,210
Administrative (681,323) (402,520) (938,690)
expenses
_________ _________ _________
Operating profit 256,275 111,035 594,520
Interest receivable and 416 7,542 1,529
similar income
Interest payable and (45,254) (52,388) (94,018)
similar charges
________ _________ ________
Profit on ordinary 211,437 66,189 502,031
activities before
taxation
Tax on profit on (63,431) (19,857) (163,169)
ordinary activities
________ _________ ________
Retained profit for the 148,006 46,332 338,862
period
________ _________ ________
Balance Sheet
As at 31 March 2003
Unaudited Unaudited Audited
as at as at as at
31 March 2003 31 March 2002 30 September
2003
# # #
Fixed Assets
Intangible assets 2,909,461 1,356,928 2,549,969
Tangible assets 173,569 181,265 178,504
________ _________ ________
3,083,030 1,538,193 2,728,473
_________ _________ ________
Current assets
Debtors 2,548,205 1,210,079 2,198,462
Cash at bank and in 667,787 292,162 241,096
hand
_________ _________ _________
3,215,992 1,502,241 2,439,558
Creditors: amounts (1,917,146) (1,072,374) (1,867,696)
falling due within one
year
_________ _________ _________
Net current assets/ 1,298,846 429,867 571,862
(liabilities)
_________ _________ _________
Total assets less 4,381,876 1,968,060 3,300,335
current liabilities
Creditors: amounts (505,111) (587,418) (451,108)
falling due after more
than one year
Provisions for (516,630) (6,750) (548,135)
liabilities and
charges
_________ ________ _________
Net Assets 3,360,135 1,373,892 2,301,092
_________ ________ _________
Capital and reserves
Called up share 797,000 155,000 562,000
capital
Share premium account 1,861,223 957,516 1,185,186
Profit and loss 701,912 261,376 553,906
account
_________ ________ _________
Shareholders' funds 3,360,135 1,373,892 2,301,092
_________ ________ _________
Notes:
1. Financial Information
The interim results for the six months ended 31 March 2003 and six months
ended 31 March 2002 are un-audited and do not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. They have been
drawn up using accounting policies and principles consistent with those
applied in the preparation of the audited accounts for the year ended 30
September 2002. The comparative information contained in the report for the
year ended 30 September 2002 does not constitute the statutory accounts for
that financial period. Those accounts have been reported on by the Company's
Auditors, Nexia Audit Limited, and delivered to the Registrar of Companies.
The report of the auditors was unqualified.
2. Taxation
The tax charge for the period is based on the anticipated effective tax rate
for the year to 30 September 2003.
3. Interim Report
Copies of this interim report are being sent to all shareholders and will be
available to the public from the Company's Head Office, Gainsborough House,
Sheering Lower Road, Sawbridgeworth, Herts, CM21 9RG.
Contacts:
David Marks SectorGuard Plc Tel: 01279 724 777
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
This information is provided by RNS
The company news service from the London Stock Exchange
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