AIM Admission
Pentagon Protection PLC
02 April 2003
Pentagon Protection Plc
('Pentagon' or 'The Group')
Admission to trading on the Alternative Investment Market
Successful placing of 25,000,000 new Ordinary Shares at 3p per share
Market capitalisation at the placing price on Admission of £2.375 million
Pentagon, a developer and supplier of specialist protective glass and related
products to the automotive sector and other industries, announces the admission
of its entire issued share capital to trading on the Alternative Investment
Market (AIM) and commencement of dealings today, 2 April 2003. The prospectus
was issued on 28 March 2003.
Pentagon's Business
The Group's proprietary vehicle window glazing reinforcement system,
SupaGlass, is the only vehicle security film system of its type to have
attained the combined recognition of Thatcham Q Vehicle Security listing, a
prEN 12600 Class 1 anti-bomb blast and impact resistance certification and
a number of security and safety awards, including the 'Fleet World'
Security Award.
The Group has strong relationships within the car industry and has
completed commissions for Aston Martin, Land Rover and Bentley, amongst
others.
The Group's growth strategy encompasses three key areas: Retail, Business
to Business and Domestic and International Franchising.
The Group, which has been operating in its sector since 1992, has an
established reputation as high quality applicators of vehicle window film.
The Group's domestic and international franchise networks include
operations in the United States, France, the Republic of Ireland, the
Channel Islands and 15 domestic outlets.
Competition in the UK is fragmented.
Flotation Statistics
In the year ended 30 September 2002 the Group reported a 48%, year on year
rise in the turnover of £1,498,390 and pre-tax profits of £135,942.
The Company has raised net proceeds of approximately £500,000 by way of a
placing of 25,000,000 new ordinary shares at a placing price of 3p per
share, representing approximately 31.6% of the Group's issued share capital
as enlarged by the placing.
The proceeds of the placing will be used by the Group to fund the further
development of Pentagon's services to the motor vehicle fleet providers,
purchase additional machinery and equipment and to provide further working
capital.
The Board of directors is chaired by David Thomas with Geoffrey Russell as
managing director.
The Company's nominated adviser is Seymour Pierce Limited and its broker is
Seymour Pierce Ellis Limited.
Commenting, Chairman David Thomas said:
'The enhanced profile and additional working capital provided by the placing and
AIM listing will enable Pentagon to develop our products and services and
further expand our international customer base.'
'Whilst the market for vehicle window tinting is mature in areas of the world
such as Australia and parts of North America, in the UK it is significantly less
developed and demand has historically been driven by the cosmetic preferences of
buyers of top-of-the-range vehicles. The UK market is also extremely fragmented.
'The Directors believe that the UK market has great potential to grow,
especially if stimulated by effective marketing to increase awareness. The
Directors anticipate that an important contributor to the market's growth will
be Government sponsored initiatives in the areas of vehicle crime and employee
related road safety.'
ENDS
For further information contact:
Pentagon Protection Plc Binns & Co PR Ltd
David Thomas, Chairman Emma McCaffrey
Tel: 020 8749 9749 Tel: 020 7786 9600
Background on the company
Clients
The Group has established strong relationships within the car industry and has a
particularly strong presence in London, where it provides services to
approximately 50 Mercedes dealerships, Ferrari dealerships Maranello, HR Owen,
Jack Barclay, Stratstone, Sytner, AFN, Jemca and the Lancaster Group. In
addition, the Pentagon Group has completed commissions for Aston Martin, BMW,
Daimler Chrysler, Mitsubishi, Rolls Royce and Bentley.
The Group has for over six years prepared cars with either tints or SupaGlass
for Land Rover. This has involved product testing and the Group has attained
approved supplier status with the company, which now offers SupaGlass and tints
as a Land Rover product to its customer base worldwide. Recently, the launch of
the new Range Rover has included a specialist accessory option programme known
as 'Autobiography', in which SupaGlass is featured as a factory option.
Currently, Pentagon is collaborating with Land Rover on certain key projects.
Pentagon recently received an 'Outstanding Supplier' award from Land Rover,
reflecting the strength of the relationship between the two companies.
The Group has also entered into an agreement with Citroen to apply dark tints to
a special edition of its Xsara 'Enterprise' estate car, and it is hoped that
this will lead to further business with Citroen.
Other customers for whom vehicles have been fitted with Pentagon products
include the Cabinet and Home Office, various police forces, the Post Office, BBC
TV, Sony, Transco, Lucas and various foreign embassies.
In addition to its corporate affairs, Pentagon has also supplied and fitted
units and/or SupaGlass for a number of private customers, including many
high-profile individuals and celebrities.
Vehicle Crime
According to the Crime in England & Wales 2001/02 Report (July 2002) 18 per
cent. of all police recorded crime was accounted for by thefts of or from
vehicles. The British Crime Survey estimates that there were 1,560,000 thefts
from vehicles in 2001/02, or one every 21 seconds. These offences tend to be
opportunistic in nature and half of the thefts from vehicles are through a
broken window. In addition, recent reports of 'carjacking' have created a new
concern for motorists, particularly those driving luxury vehicles. By increasing
the time and effort required to break through a window, thus protecting the
people inside the car and dissuading most would-be thieves from persisting in
trying to break through, SupaGlass addresses both of these threats.
In order to tackle the problem of rising vehicle crime, a Government committee
called VCRAT (Vehicle Crime Reduction Action Team) was established in September
1998. This team is charged with reducing vehicle crime by 30% over a five-year
period. It has published recommendations to achieve this goal, including one
regarding the improvement of vehicle perimeter security (door locks and
glazing).
In February 2002, the RAC Foundation issued a press release advising motorists
fearful of becoming victims of carjacking to consider having protective film
applied to their car windows. According to the Foundation's executive director
Edmund King: 'using a good quality protective film professionally applied to a
window will also help motorists avoid smash and grab attacks.'
Vehicle Safety
The UK's Health and Safety Executive is considering extending the definition of
the 'workplace', with all its associated safety regulations, to include vehicles
used for work. A Government-appointed task group on work related road safety has
concluded that employers must take responsibility for ensuring the safety of
their employees while on the road on business. In a recent Health and Safety
Commission discussion document, the task group took the view that: 'Employers
should manage the risks associated with at work road journeys and other
on-the-road work activities within the framework they have in place of managing
health and safety within their firms.'
This information is provided by RNS
The company news service from the London Stock Exchange