13 Jul 2010 07:00
13 July 2010
Pentagon Protection Plc
('Pentagon' or 'the Group')
OPERATIONS UPDATE
Pentagon Protection Plc (AIM:PPR), glass protection and security specialists, announces the following operations update.
In the interim results for the six months ended 31 March 2010, Pentagon gave brief details of an issue that had impacted the development of the protective film business, in that during the current year, substantial management time had been devoted to resolving a warranty claim arising in the Group's subsidiary, Pentagon Protection UK Limited ("PPUK"), from the supply of film direct from a manufacturer to a Pentagon client in 2005.
It has recently become apparent to Pentagon that the Group's insurers are not likely to settle the claim in a timescale that will meet both Pentagon's and its client's requirements. Therefore, Pentagon has agreed to dispose of PPUK to Graham Bannerman, who was the CEO of Pentagon at the time the protective film in question was supplied in 2005.
Mr Bannerman will take on the responsibility for resolving the claim, freeing up the Group to continue developing its market share in the protective film business. Mr Bannerman has significant experience in the film industry and was instrumental in bringing the client to Pentagon. Therefore he is well placed to take on a project of this nature.
The consideration to be paid for PPUK is £1 plus 20% of any profits arising from the satisfactory resolution of the claim.
We are also pleased to announce the formal receipt of a major contract award from the European Commission for the installation of glazing protection to commission buildings in Brussels. The value of this contract, which was trailed in the Official Journal of the European Union in February 2010, is in excess of €3,000,000, and the award is a reflection of Pentagon's position within the international market-place.
These glazing protection works will be implemented by way of a phased programme and include the application of a high-tensile strength anti-shatter film and anchoring system.
Haytham ElZayn, Chairman , commented:
"This is a major contract win for Pentagon which should have a significant impact on next year's results. After some time tendering for the works, we are extremely pleased to have this one under our belt. Pentagon is considered a major player in providing enhanced glass protection with the retrofit application of glass containment film and various anchoring systems, and I believe securing this contract underlines this position. The disposal of Pentagon Protection UK Limited now allows us to concentrate on building on this contract win and I look forward to announcing further news on the growth of the business in the near future"
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Enquiries:
Pentagon Protection Tel: 01494 793 333
Haytham ElZayn
Pentagon Protection Tel: 01494 793 333
David Marks
Seymour Pierce Tel: 020 7107 8000
Jonathan Wright
Notes to Editors:
Admitted to AIM in March 2003 Pentagon Protection plc is a global specialist in the development and application of glass protection window film to provide a cost-effective and immediate solution to many problems normally associated with building flat glass.
As experts in enhanced security and blast mitigation, in September 2008 Pentagon acquired SDS Group Limited, an established company of over 30 years and a leading supplier of security equipment and products. SDS is also a world leader in security consulting and training, these services being led by Dr John Wyatt. John is highly respected in his field and also widely known both in the UK and overseas; his knowledge and reputation are substantial assets to the wider Group.
SDS Group supplies equipment, including highly-specialist security and search equipment, mainly to governments, police forces and security and defence forces in the UK and around the world. SDS has strong relationships with customers and extends their offering to clients by providing expert knowledge and further training and consultancy. This acquisition supports plans for continued expansion of the Group's activities in the security industry which is affected less by the world economic downturn than many sectors.
On the 3rd March David Marks joined as COO and is seeking to grow the business from the existing platform.