15th Jul 2005 07:01
ArmorGroup International plc15 July 2005 15th July 2005 Period End Update Announcement ArmorGroup International plc ("ArmorGroup" or the "Group"), the leadinginternational provider of defensive protective security services and securitytraining services, today issues its period end update announcement for the sixmonths ended 30 June 2005. ArmorGroup's revenues for the six month period are expected to be over 25%higher than last year, although underlying EBITA* will be similar to thecomparative period. Profitability has been impacted by the increasedhostilities in Iraq in the run up to and following the elections which resultedin unexpected operating costs together with delays to certain material contracttenders and awards. In addition, during the period, the Group has established aproject management office, in readiness for the award of the Weapons Reductionand Abatement Services (WRAS) contract announced in May, and has expanded itsWashington office in order to enhance the Group's ability to tender for largerUS government contracts. While the board expects the Group's full yearunderlying EBITA* to be ahead of the 2004 level, the effect of these additionalcosts, contract tender delays and investment in the Group's operating base inthe first half of 2005 the board has lowered its earnings expectation for thefull year. Notwithstanding this, the board remains confident as to the growth prospects forthe Group's core markets and ArmorGroup's position within them. The investmentmade in the period means the Group is now very well placed to capitalise on theincreasing opportunities available to it and the board is pleased to reportstrong growth in both the number and value of contracts now being tendered andawarded, after a relatively slow start to the year. The Group has so farsubmitted seven task orders under the WRAS contract, the first of which hasalready been successfully secured, with decisions outstanding on the remainder.Four more task orders are due to be submitted within the next week. Of theUS$191m of outstanding tenders noted in March this year, the Group hassuccessfully secured approximately 30% with some 25% still to be awarded.Tenders currently awaiting award stand at US$204m, of which US$126m has beentendered for in the last 45 days. Despite the delays experienced earlier in the year, more recent successes haveraised the revenue under contract for the full current year to US$225m. Thenumber of contracts recently awarded together with the pipeline of tendersoutstanding improves the Group's positioning for further increased revenues andunderlying EBITA in the medium term. ArmorGroup's interim results announcement is scheduled for 15 September 2005. Jerry Hoffman, Chief Executive Officer, commenting on current trading andoutlook said: "Our market sector continues to grow and our position within the market remainsstrong. Although delays in contract awards in the early part of 2005 will impacton our overall profitability this year, the nature of the contracts recentlyawarded and the number of tenders outstanding gives us all the more confidencethat the Group is well placed to further improve revenues and profits in thefuture. We remain confident as to the Group's prospects and believe that our significantinvestment for the future in people and infrastructure this year will reaprewards in 2006 and beyond, and will help geographically diversify the Group'srevenues and profits as planned". Enquiries: ArmorGroup International plc Jerry Hoffman, Chief Executive Officer tel: + 44 (0) 207 808 5800Dave Seaton, Chief Financial OfficerNick Melson, Communications Manager Citigate Dewe Rogerson Sarah Gestetner / Alistair Kellie tel: + 44 (0) 207 638 9571 Notes to Editors ArmorGroup International plc. ArmorGroup, which has its headquarters in London and a major office inWashington DC, has over 7,800 employees and operations in over 26 countries. Itprovides its services principally to first world national governments, majorinternational inter-governmental organisations and multinational corporations.It operates principally in regions of the world with diminished law and order orwith a high risk of terrorism or which were former areas of conflict includingthe Middle East, Africa, South America, the CIS and Asia. The Group listed onthe London Stock Exchange in December 2004. For more information please visitwww.armorgroup.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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