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Re: Training Division & Appointment of Director

1st Aug 2013 07:00

RNS Number : 6616K
Red24 PLC
01 August 2013
 

red24 plc

("red24" or the "Company"; AIM:REDT)

 

 

Creation of New Training Group and Appointment of Director

 

 

red24, an international provider of risk management services, is pleased to announce the acquisition of a 25% interest in the share capital of Linx International Limited ("Linx"), the consideration for which will be the sale of red24's wholly-owned subsidiary, ARC Training International Limited ("ARC Training"), to Linx.

 

Linx, a leading security consultancy, is retained by a number of blue-chip organisations to provide training, security and risk management support and corporate investigations. Linx owns 75% of Perpetuity Training Ltd, who are a major provider of security management training within the UK and the addition of ARC Training's international client base, is expected to create one of the world leaders in security management training as well as providing opportunities for both red24 and Linx to expand the range of services offered to leading UK and international organizations.

 

Following completion, David Gill, the founder and managing director of Linx, will join the board of directors of red24 as a non-executive director. David had a successful career in the police force and is a Chartered Security Professional and the former Vice Chairman of The Security Institute. He has lectured on a variety of security disciplines at leading universities and has contributed to the drafting of the National Occupational Standards for Security Consultants. He has also had a number of articles and guides published and has given evidence on security matters as an Expert Witness at the High Court. Further information in respect of Mr Gill required pursuant to Schedule 2(g) of the AIM Rules for Companies is set out at the end of this announcement.

 

For the year ended 31 March 2013, ARC Training contributed revenues of £1,147,623 and profit before tax of £51,251. At 31 March 2013, ARC Training had net assets of £144,601. red24 intends to retain the Consideration Shares and Linx will be recognised as an associate of red24 in its consolidated financial statements from the date of completion.

 

Simon Richards, chairman of red24, commented: "We are delighted to have established a formal relationship with Linx who we believe are best placed to deliver the next stage in ARC Training's development. We expect this transaction to be broadly earnings neutral in the short-term, after recognising our share of the profits of Linx through our retained interest and to have a clear potential for earnings accretion going forward as Linx goes from strength to strength. We are also very pleased to welcome David Gill to the board of directors of red24. He brings a high level of sector expertise and experience and will provide a valuable added dimension to the board."

 

David Gill commented that: "The acquisition of ARC Training presents Linx with an exciting opportunity to build the global leader in security training. ARC Training and Perpetuity Training are widely recognised across the UK's security sector as the leading providers in security management training. Working in tandem I see huge scope for them to tackle much larger markets and expect significant growth for both businesses, particularly overseas. I am very much looking forward to working alongside the red24 management team and to supporting opportunities where red24 and Linx can combine their specialist expertise and resources to reach new and different markets"

 

red24 plc

+44 (0) 20 3291 2424

Simon Richards

Chairman

Maldwyn Worsley-Tonks

CEO

finnCap Ltd

+44 (0) 20 7220 0500

Stuart Andrews / Henrik Persson / Simon Hicks

Corporate Finance

Brian Patient / Victoria Bates

Corporate Broking

 

Information required pursuant to Schedule 2(g) of the AIM Rules for Companies:

 

Mr David John Gill (aged 56) is or has been a director or partner of the following companies or partnerships during the previous 5 years:

Linx International Limited

Napier-Watson Limited

Chartdata Limited

Guardlinx Ltd

Hotel Maiyango Ltd

Perpetuity Training Ltd

The Security Institute (resigned 29 May 2012)

 

There is no further information in respect of Mr. Gill required to be disclosed pursuant to Schedule 2(g) of the AIM Rules for Companies.

 

About red24:

red24 is a crisis assistance company that provides a range of security and business support services, offering preventative and reactive advice to help organisations and individuals to avoid or manage security and business risks to themselves, their families and their businesses. Its products and services are distributed through leading international financial service companies.

 

 

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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