Company Restructure

24 Feb 2006 07:00

Pentagon Protection PLC24 February 2006 For release 07.00am 24 February 2006 PENTAGON PROTECTION PLC Strategic Restructuring via Acquisition and Divestment & Trading Update Pentagon Protection Plc ("Pentagon" or "the Company"), the provider of safetyand security products for commercial, architectural and automotive glass,announces that following a difficult 2005 it intends to significantlyrestructure its business to improve its sustainable growth prospects for thefuture. Pentagon is already in advanced talks to acquire one the UK's leading flat glassfilm application companies. The acquisition would complement Pentagon'scommercial buildings and architectural division ("buildings division"), whichsupplies and installs blast protection film to flat glass and anchoring systemsfor enhanced blast and weather protection. All sales of the company concerned are in the UK, it has a healthy order book, agood spread of clients, and an experienced management team. Pentagon intends to divest its loss-making automotive division via a trade saleas soon as possible. This will free up management resources to concentrate ongrowing its buildings division. Trading Update 2005 was a challenging year for Pentagon. Its automotive division that designsand applies tinting and strengthening film to automotive glass incurredsubstantial losses that included large exceptional write offs. The demands ontime the division required were to the detriment of management attention andsubsequently the performance of the company's buildings division, that will alsoreport a loss despite a growing international business. The buildings division's revenue in the first quarter 2006 saw the contributionof overseas sales increase significantly to 50% of all sales, up from 20% in thesame period of 2005. Demand for blast and weather protection film application onbuildings is growing rapidly around the world and Pentagon has determined totake full advantage of this. The Company already has offices in the UK,continental Europe, the Middle East, and has signed a distribution agreementwith Mr. ElZayn, Chairman of Allegiance Holdings LLC, for the sale anddistribution of the company's products in the US. The Company will look to openmore offices and sign distributor deals around the world in 2006. Graham Bannerman, Pentagon Chief Executive, commented: "It was a difficult decision to put the automotive division up for sale, butwith the losses incurred, we feel it is now time to maximize our efforts on ourcore business. There is an increasing demand around the world for protectivefilm for windows in buildings, which is being helped by the growing number ofconflicts and the concern of terror attacks. We look forward to focusing all ourattention on growing the core business and are excited about its potential." Pentagon will announce its Preliminary Results for the financial year ended 30September 2005 in the latter half of March 2006. - ENDS - Enquiries: Pentagon Protection Plc Graham Bannerman, Chief Executive T. 020 8749 9749 Binns & Co PR Ltd Ben Knowles T. 020 7786 9600 ben.Knowles@binnspr.co.uk M. 07900 346 978 This information is provided by RNS The company news service from the London Stock Exchange