7th Nov 2005 15:43
ArmorGroup International plc07 November 2005 7th November 2005 Trading Update ArmorGroup International plc ("ArmorGroup" or the "Group"), the leadinginternational provider of defensive protective security services, weaponsreduction and mine clearance and security training services, today issues atrading update announcement for the year ending 31 December 2005. ArmorGroup's turnover for the year is expected to be approximately 20% higherthan last year, although operating profit will be lower than last year andsubstantially below market expectations primarily due to delays in cost recoveryon awarded contracts in Iraq and delays in the award of incremental and new workoriginally anticipated for the fourth quarter. About half of the profitshortfall is due to one major contract where the client delayed fullmobilisation. The problem has been fully resolved but full billing of thecontract was only possible from late October instead of early September. TheGroup has also been affected by delays in the award of tendered work in Iraq,partly as a result of the slow down during the recent Referendum and the unrestin Basra. The Group's operations outside Iraq are trading in line with expectations andunderline the more stable and predictable nature of those operations. Jerry Hoffman, Chief Executive Officer, commenting on trading said: "The volatility and commercial risk of the Iraq environment remain importantfactors for both revenue and profitability. However, we continue to have a soundfooting in Iraq and our business plan remains solid for longer term growth anddevelopment. We have incurred contract delays but that has not resulted inbusiness being lost. We remain confident of the Group's medium and long termprospects". 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 Patrick Toyne Sewell / Ged Brumby 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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