Resolute Mining Regulatory News (RSG)

28 Apr 2006 11:52

Reliance Security Group PLC28 April 2006 Reliance Security Group plc ("Reliance") Trading update The Directors of Reliance are pleased to provide an update, prior to thecommencement of the close period, on the Group's trading performance andprospects. The Directors expect that trading results for the year to 28 April 2006 will bein line with market expectations. The Group remains financially strong with goodlevels of organic cash generation. In security services, market conditions have remained challenging and we haveseen continuing pressure on margins. We have devoted great management effort andexpense to meet the needs of security industry regulation. This diversion ofresource has resulted in some slippage in our market share. However, we expectthat the full implementation of regulation, from 20 March 2006, will start tohave a beneficial impact during the course of next year, and we haverestructured the senior management team to take full advantage of this. The group enjoys extensive growth opportunities in the large and diversefacilities management and business process outsourcing market, estimated toexceed £40 billion per annum. We continue to invest in developing new productsand services to meet the needs of these markets for process change and theapplication of the latest technology. A number of contracts have beensuccessfully renewed, we have invested significantly in additional businessdevelopment resource and activity levels remain high. The loss of our electronic monitoring contract on 31 March 2006 means that nextyear will be the first full year without the benefit of this business. Theouturn for next year will be dependent on our success in winning further newsignificant business. Reliance's results for the year to 28 April 2006 are expected to be announced on29 June 2006. Note: Reliance is an established market leader in the provision of contract security,facilities management and support services and in business process outsourcing.Reliance employs over 12,000 people from a network of offices throughout the UK. Enquiries: Brian Kingham 020 7730 9716Chairman Julian Nicholls 01895 205002Group Managing Director This information is provided by RNS The company news service from the London Stock Exchange