ARG.L Regulatory News (ARG)

26 May 2006 10:24

ArmorGroup International plc26 May 2006 ArmorGroup International plc AGM Statement ArmorGroup International plc, the leading international provider of defensiveprotective security services and security training services, holds its AnnualGeneral Meeting this morning. At the meeting the Chairman, Sir Malcolm Rifkind,will the following statement to shareholders. "We have seen growth in several geographic areas over the first four months ofthe current year which has tempered the slow down of new Iraqi contract awardsas reported in the Preliminary Results statement in March. In particular theGroup is enjoying increasing demand for its services in Afghanistan, Russia andNigeria and throughout the rest of the Middle East. The recent appointment of the Iraqi cabinet is an encouraging development whichmay result in increased business opportunities in Iraq as the ministriesprioritise tasks and release funding for further reconstruction work. The timingof such work is unpredictable because the ministries will first need toestablish themselves and be allocated funding for these projects. In the longerterm we also expect the major oil and gas operators, many of whom we alreadywork closely with, to need the Group's training and security support servicesprior to and during their deployment. The need to maintain a dynamic global capability has led to the development ofcommercial platforms in new territories, such as Sudan and Japan, and hasenabled the closure of our minor operations in Thailand and the Philippines. Areview of the Group's central overhead structure with a view to reducing costsis already underway. Although some of these actions have been completed themain benefits will not be reaped until the second half. Therefore we anticipatethat H1 operating profits will be marginally below those for the same periodlast year. As previously announced Jerry Hoffman has decided to retire this summer and DaveSeaton, the current Chief Financial Officer, has been confirmed as hissuccessor. Jerry will formally step down on 1 June but will remain with theGroup until mid-July whereupon he will return to the US. He will continue toassist us in the further development of our US business on an advisory basis.I'd like to wish Jerry a very long and enjoyable retirement and thank him foreverything he's done for the Group over the four years he has been CEO. Looking forward, we anticipate that the general demand for our services willcontinue to rise for the forseeable future. We believe the heightened threatlevel around the globe, and the increasing commitment of the US and Britishgovernments to international and homeland security will generate futureopportunities. Additionally we see further opportunities through reconstructionand new development projects in unstable areas of the world, together withincreased extractive industry exploration and development activity. Your Boardis also committed to the further diversification of revenues and profits awayfrom Iraq by further geographic and service line expansion that will strengthenthe long term prospects of the business." Enquiries: ArmorGroup International plc Jerry Hoffman, Chief Executive Officer Tel: +44 (0) 20 7808 5800 David Seaton, Chief Financial Officer Citigate Dewe Rogerson Patrick Toyne Sewell/Ged Brumby Tel: +44 (0) 20 7638 9571 Notes to Editors ArmorGroup International plc. ArmorGroup, which has its headquarters in London and a major office inWashington DC, has over 9,000 employees and operations in over 35 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. For more informationplease visit www.armorgroup.com. This information is provided by RNS The company news service from the London Stock Exchange