Reliance Security Group PLC
28 April 2006
Reliance Security Group plc ('Reliance')
Trading update
The Directors of Reliance are pleased to provide an update, prior to the
commencement of the close period, on the Group's trading performance and
prospects.
The Directors expect that trading results for the year to 28 April 2006 will be
in line with market expectations. The Group remains financially strong with good
levels of organic cash generation.
In security services, market conditions have remained challenging and we have
seen continuing pressure on margins. We have devoted great management effort and
expense to meet the needs of security industry regulation. This diversion of
resource has resulted in some slippage in our market share. However, we expect
that the full implementation of regulation, from 20 March 2006, will start to
have a beneficial impact during the course of next year, and we have
restructured the senior management team to take full advantage of this.
The group enjoys extensive growth opportunities in the large and diverse
facilities management and business process outsourcing market, estimated to
exceed £40 billion per annum. We continue to invest in developing new products
and services to meet the needs of these markets for process change and the
application of the latest technology. A number of contracts have been
successfully renewed, we have invested significantly in additional business
development resource and activity levels remain high.
The loss of our electronic monitoring contract on 31 March 2006 means that next
year will be the first full year without the benefit of this business. The
outurn for next year will be dependent on our success in winning further new
significant business.
Reliance's results for the year to 28 April 2006 are expected to be announced on
29 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 9716
Chairman
Julian Nicholls 01895 205002
Group Managing Director
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.