Reliance Security Group PLC
27 April 2007
Reliance Security Group plc
Trading Update
27 April 2007
The Directors of Reliance Security Group plc are pleased to provide an update,
prior to the commencement of the close period, on the Group's trading
performance and prospects.
We believe that the Group's trading results for the year to 27 April will be
slightly ahead of our previous expectations. Cash generation continues to be
good and the Group remains financially strong.
In security services, our earlier heavy investment in compliance with the
requirements of industry regulation has yielded benefits. We have reversed the
trend of the three previous years and have enjoyed strong volume growth in the
year, although the rate of growth in new business slowed significantly in the
second half. The market remains competitive with continuing pressure on
margins.
In the facilities management and business process outsourcing markets, we have
seen organic growth in our business with existing customers and have
successfully mobilised a number of new contracts. These factors, together with
successful management of existing contracts, have compensated for contracts lost
in the previous year.
The Directors believe that the outlook for the coming year is encouraging. In
security services, we anticipate the beneficial effects of regulation will
continue, though the market will remain very competitive. In the large and
dynamic facilities management and business process outsourcing market, there
will be opportunities for further growth.
Reliance expects to announce its results for the year to 27 April 2007 on 28
June 2007.
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 0207 7730 9716
Chairman
Julian Nicholls 01895 205002
Group Managing Director
This information is provided by RNS
The company news service from the London Stock Exchange
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