Sectorguard Share Discussion Threads

[blackfox] 13/3/2009 16:39

substp, you hit the nail on the head. Now watch the company taken out on the cheap, or go into administration with the lender and others picking up most of it for nothing.

[substp] 13/3/2009 08:46

It looks and feels like another AIM con ...... :-(

[only1buster] 11/3/2009 19:01

although current holders will suffer a 50% dilution with the new issue of shares, sgd the enlarged group should produce a turnover for year 2009-2010 of 60 million - a 100% increase in turnover and a profit at a consrvative 15%, of 9 million - a very good chance of divi restoration and begin to push higher into the top 20 sucurity companies - becoming a nuiseince to larger rivals will attract a takeover bid - sgd seems to me to be definately moving in the right direction.

[eugene1234] 11/3/2009 18:40

thehoops16 - Who published the article you posted above? Was it you?

[thehoops16] 11/3/2009 17:21

Security specialist SectorGuard has geared itself up to buy Legion Group, the oldest parking services and security group in the UK.

The company said the deal was an excellent opportunity for it to acquire an iconic brand with an impressive portfolio of work that increased its market penetration and opened up new opportunities.

Legion is a wholly-owned subsidiary of the Royal British Legion Attendants Company Trust (RBLACT), a registered charity that was set up in 1923 with the aim of promoting employment opportunities to ex servicemen and women.

These days it is a major provider of manned guarding and CCTV monitoring services to the public and private sectors with a long established history in parking services. Last year it posted a turnover of £27.5 million, with a 17% gross profit, and currently employs around 1,200 licensed security personnel and 200 car park and traffic operatives.

SectorGuard is paying a nominal initial consideration of £1 to buy the business and will pay RBLACT £100,000 per year over the next ten years.

In an effort to ease the integration of the Legion business, SectorGuard has raised £0.98 million in a share placing and secured a £1 million loan from its chief executive, Mark Higgins.

Higgins said the deal should generate significant shareholder and stakeholder value once the integration is completed. "We are very excited to announce this milestone event for SectorGuard," he said.

[thehoops16] 11/3/2009 17:20

bargain - theres money to be made

[eugene1234] 11/3/2009 16:09

over 1m shares bought, why?

[joey_the_lips] 11/3/2009 12:52

I'd like to be able to but that many shares at 1p. What a rip-off that is!

[substp] 11/3/2009 08:09

What a load of twaddle !...... :-(

All of that money for intergration .......

[eugene1234] 11/3/2009 07:10

11 March 2009




Enquiries:




SectorGuard
01992 701972

Mark Higgins, Chief Executive



Charlie Cleverly, Managing Director








Seymour Pierce
020 7107 8000

Jonathan Wright








College Hill
020 7457 2020

Nick Elwes







www.sectorguard.co.uk







About Legion

Legion Group plc is the UK's oldest established parking services and security services group and a leading provider of manned guarding and CCTV monitoring services to the public and private sectors. Legion provides civil parking enforcement services and car park management services to local authorities, shopping centres, retail parks and private organisations nationwide. Legion has nine offices nationwide.




For the year ended 30 September 2008, Legion had a turnover of £27.5 million with a gross profit of £4.5 million and overheads of £5.5 million.




Legion is unique in providing both security services and parking services. Through its subsidiary company, Legion Technologies Ltd, Legion is the single point of contact for access to an extensive range of bundled services utilising today's most advanced technology, including sophisticated electronic access control systems, portable perimeter protection, covert tracking technology and lone worker protection. By combining the services of Legion's experienced officers and world-class technology, Legion is able to offer innovative, fully integrated solutions designed to meet clients' specific requirements




Legion's national workforce of approximately 1,400 fully trained and, where necessary, licensed officers is dedicated to providing the highest levels of customer service. Legion has accredited training programmes for manned guarding, CCTV monitoring and parking services personnel to ensure that all staff are fully updated on current legislation, industry best practice and the latest technological advances.




Legion Group plc is a wholly-owned subsidiary of the RBLACT, a registered charity with the aim of promoting employment opportunities for ex servicemen and women.




Legion is a Security Industry Authority approved contractor.







Rationale for the transaction

The security market has seen widespread changes in the last six months resulting in security companies needing to provide a more balanced portfolio of services as well as client focussed approach. The enlarged group will provide a greater breadth of services and this, combined with the improved internal model which is focussed on client support, will enable the enlarged group to compete more effectively in the security market.




The parking enforcement element of the Legion portfolio provides in excess of 200 staff and siginificant access to a wider market place for the combined business.




The enlarged group will retain the Legion name and brand whilst using the SectorGuard model to improve the client service and efficiencies which have been developed and implemented by the new SectorGuard team in the last three months.







Details of the Acquisition, the Placing and the Loan from Mark Higgins

SectorGuard has agreed to acquire the entire issued share capital of Legion for an initial consideration of £1. In addition, the Company will also pay a sum of £100,000 per year for ten years to the RBLACT.




The Company is also raising approximately £1.98 million before expenses through a placing of 197,925,400 shares at 1p per share.




Mark Higgins, CEO of SectorGuard has also agreed to provide the Company with a loan of £1 million. The Loan is for a maximum term of three years, but is repayable in cash at the Company's option at any time after 18 months or repayable, by agreement between the Company and Mark Higgins, at any time by the issue of ordinary shares in the Company equal to the then outstanding balance at an issue price of 1p per share. The Loan attracts interest at 3 per cent. above 3-month LIBOR.




The Loan from Mr Higgins and the net proceeds of the placing will be used to assist in the successful integration of Legion with the Company.




The integration of the two companies is expected to take approximately six months to complete.




Manguard additional consideration

Pursuant to the terms of the agreement by which SectorGuard acquired Manguard plc from Mark Higgins in 2008, additional cash consideration is payable in 2009 and 2010 dependant on the Manguard business achieving certain levels of turnover and gross profit.




The independent directors of SectorGuard have determined that at least £1.3 million of the maximum £1.5 million of the first year additional payment will become due to Mr Higgins.




The Company has agreed with Mark Higgins that the additional consideration due in 2009 shall be converted into loan notes on broadly the same terms as those relating to the Loan mentioned above save that the Loan Notes become due and payable in cash on the later of 1 September 2010 and 3 months from the date of issue of the relevant Loan Notes. In consideration for Mark Higgins taking the Loan Notes, the Company has agreed to issue £1m of the Loan Notes earlier than the corresponding amount of additional cash consideration that would otherwise be due on 4 May 2009.




Furthermore, the Loan Notes may be repaid at any time by agreement between the Company and Mark Higgins, if repayment is made by the issue of shares in the Company. The issue price of such shares will be 1p per share.




It is the intention of the Company to call a General Meeting of the Company shortly to increase (if appropriate) the authorised share capital of the Company, to authorise the directors to allot relevant securities pursuant to section 80 Companies Act 1985 and to disapply pre-emption rights in so far as may be necessary to allow the Company to satisfy all or part of the Loan and/or the Loan Notes by the issue of new ordinary shares in the Company and in order to restore the headroom in the number of shares available for issue.




Each of the Loan, the issue of the Loan Notes and the early payment of the additional consideration referred to above are related party transactions pursuant to the AIM Rules. The independent directors of SectorGuard, Stephen Thomas and Charlie Cleverly, having consulted with Seymour Pierce, consider that the terms of the Loan Notes and the early payment of the additional consideration are fair and reasonable insofar as shareholders are concerned.




Application will be made for the admission of 197,925,400 new ordinary shares to trading on AIM and admission is expected to occur on 16 March 2009. Following admission, SectorGuard will have 593,776,248 ordinary shares in issue each carrying one voting right.

[eugene1234] 09/3/2009 16:32

MM's wouldn't sell @1.7. Tried today @ 1.77 but zilch! Oh for news>

[only1buster] 20/2/2009 22:08

mr marks still has a very large % of company shares - the destination of his holding could be interesting to a larger preditor - if the company aviods any signifcant bad debts and loss of contracts the present share price will be shown to be greatly undervalued when the next set of results are published. He who dares wins, 1.8p is not a risk to lose any sleep about, the upward potencial is significant. Good luck to all bravehearts.

[eugene1234] 15/2/2009 08:25

Have gathered a few @ around 1.8p and will continue to purchase monthly as finances allow. This share is asleep.

[poppadom2] 12/2/2009 22:34

you must watch this share not against its history but against the backdrop of how economy is moving. while most sectors are sliding down, this sector is holding its own well and insome places growing. Within the sector this remains a badly undervalued share. If you base you assesment on feb09 rather than history you'll see that this is one that will go manic as i have forecast. Just hope it goes up gently and does not overheat as there are always plenty of people around to profit take rather than to be in it for the long term.

[only1buster] 12/2/2009 20:20

Feb 23rd 07 when the last divi was paid - yield is ZERO at present - it will be interesting to see if it is restored after the year end 31st march 09 - ors

[oldgeezer] 09/2/2009 13:34

Its a funny old share this one. Have been in profit when i purchased around 3p and it went to 5p WOW!!! But its just not a performer. I bought in because i thought at the time Security Companies should do well with all the terrorism and problems going on and i still think it will do well in the future but lets hope its not too far away.
Current pe is a measly 7.3, Yield is 6.7 and Nav 3.42 according to ADVFN, hopefully it will come back in favour sometime but looks very cheap at the moment, but as its listed on the aim market not many institutions are likely to be interested only pi`s like us.

[poppadom2] 07/2/2009 15:02

I know the dividend is peanuts but hey webis did the same turnaround from loss to profit last week and there shares rose more than 100% in 3 days. Are investors in sectorguard asleep? Fine to me, happy to pay at a price thas surely has bottomed out for a company that changes profit to loss during a recession! The majority of ftse 100 companies like for like cannot match this.

[oldgeezer] 22/1/2009 14:10

Well somebody confident, with 10mil trade gone through at 2p thats 200 grand.
I think like so many stocks these have been hammered and forgottten.
Its been never been much of a performer and i have always hoped for better given the sector its in.

[ged5] 04/1/2009 12:21

SectorGuard shares surged as the group reported interim gross profit of £2.7m, more than double the same period last year. Gross margins rose to 17.4 per cent from 13.0 per cent.



SectorGuard swings to profit in H1 - Quick facts
12/31/2008 5:10 AM ET
(RTTNews) - SectorGuard PLC (SGD.L: News ) reported six-month profit of GBP 102 thousand or 0.03 pence per share, compared to a loss of GBP 219 thousand or 0.07 pence per share in the comparable period a year ago. Profit before taxation totaled GBP 129 thousand, compared to a loss of GBP 311 thousand last year.

For six-month ended 30 September 2008, the company's revenues rose to GBP 15.3 million from GBP 9.1 million last year.

Looking ahead, the company said that the management has been reassessing and refining its business model, henceforth believe that the model would provide the foundations from which it can continue to deliver its strategy.

[dubois] 03/1/2009 16:18

greenroyd

Unfortunately you are correct, yes it is £0.000269 EPS

[deanforester] 02/1/2009 14:15

I'm sure that you are correct. The RNS has the error.

[greenroyd] 02/1/2009 13:16

Sorry to spoil the celebrations but I think if you look closely you will see the EPS is .03 Pence ie 3 hundreths of a penny. I was just about to buy a few more when I noticed.

[deanforester] 31/12/2008 18:06

Actually the last dividend was 0.11p, paid on 23 Feb 07.

According to the RNS, shares in issue are 381,781,829, so at 0.11p the dividend would take £419,960.

DF

[deanforester] 31/12/2008 18:04

I was working on what the RNS says:

Six months ended Six months ended 18 months to
30 September 2008 30 September 2007 31 March 2008

BASIC EPS
Loss after taxation (£) 102,073 (219,734) (48,842)
Earnings per share (pence) 3 (7) (2)

DILUTED EPS
Loss after taxation (£) 102,073 (219,734) (48,842)
Earnings per share (pence) 3 (7) (2)

See

Note 3.

DF

[only1buster] 31/12/2008 14:03

Shares in issue now 395.85 million - restoration to cost £400K