Reliance Security Group PLC
26 May 2004
Reliance Security Group plc ('Reliance' or 'the Company')
Disposal of non-core investment in Command Security Corporation ('Command')
The Directors of Reliance are pleased to announce that the Company has completed
the sale of its investment in Command, a listed US security company, to Galloway
Capital Management LLC, a US institutional investor, for a cash consideration of
$2.85 million, which has been received in full. The proceeds, after conversion
into sterling, will be placed on deposit.
The transaction will crystallise an estimated loss of approximately £0.2 million
for Reliance this year.
Reliance has accounted for Command as an associated undertaking and consolidated
pre-tax profits of £0.3 million in respect of its share of Command's results in
the year to 25 April 2003.
Commenting on the disposal, Brian Kingham, Chairman, said:
'Our decision to sell this investment was announced last year as a result of
legislative changes in the US which followed the tragic events of September 11.
These comprised the federalisation of pre-board screening services at US
airports and the exclusion of Command from bidding for certain potentially
attractive US government contracts on account of its part foreign ownership. We
are pleased that we have completed the divestment, which we consider to be in
the best interests of both Command and Reliance.'
Notes to editors:
Reliance is an established market leader in the provision of contract security,
facilities management, support services and business process activities.
Reliance employs over 12,000 people from a network of offices throughout the UK.
Enquiries:
Jeremy Simon
Group Legal Adviser and Company Secretary 01895 205002
Simon Woods
Group Financial Controller 01895 205002
This information is provided by RNS
The company news service from the London Stock Exchange
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