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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Sectorguard | LSE:SGD | London | Ordinary Share | GB0031427940 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 1.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
TIDMSGD RNS Number : 6494O SectorGuard PLC 11 March 2009 SectorGuard plc Acquisition of Legion Group Plc Placing to raise approximately GBP1.98 million SectorGuard plc ("SectorGuard" or the "Company"), a leading provider of total security solutions, is delighted to announce the entering into of a binding agreement to acquire the entire issued share capital of Legion Group plc ("Legion"), the oldest parking services and security group in the UK. Acquisition Highlights: * Legion is a leading provider of manned guarding and CCTV monitoring services to the public and private sectors with a long established history in parking services. * In the year ended 30 September 2008, Legion had turnover of GBP27.5 million, with a 17 per cent. gross profit, employing around 1,200 licensed security personnel and 200 car park and traffic operatives. * 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. * Legion is to be acquired for an initial consideration of GBP1. In addition, SectorGuard will also pay the RBLACT the sum of GBP100,000 per annum for ten years. * Acquiring Legion provides an excellent opportunity for SectorGuard to acquire an iconic brand with an impressive portfolio of work that increases the market penetration of SectorGuard and opens up new opportunities. The Company also announces a placing of 197,925,400 new ordinary shares at 1p per share to assist in the successful integration of Legion. The Company further announces that Mark Higgins has agreed to lend GBP1m to the Company (the "Loan") and has also agreed that certain rights to additional cash consideration under the Manguard acquisition agreement can be paid by way of loan notes ("Loan Notes"), in each case convertible, by agreement between the Company and Mark Higgins, into ordinary shares at a conversion price of 1p per share. Mark Higgins, Chief Executive of SectorGuard commented: "The acquisition of Legion Group plc will further enhance the Company's position as a top tier provider employing in excess of 2,700 staff within the UK Manned Guarding sector. Legion Group's heritage, brand and client portfolio should generate significant shareholder and stakeholder value once the integration is completed. We are very excited to announce this milestone event for SectorGuard." 11 March 2009 Enquiries: +-------------+---------------+ | SectorGuard | 01992 701972 | +-------------+---------------+ | Mark | | | Higgins, | | | Chief | | | Executive | | +-------------+---------------+ | Charlie | | | Cleverly, | | | Managing | | | Director | | +-------------+---------------+ | | | +-------------+---------------+ | Seymour | 020 7107 8000 | | Pierce | | +-------------+---------------+ | Jonathan | | | Wright | | +-------------+---------------+ | | | +-------------+---------------+ | College | 020 7457 2020 | | Hill | | +-------------+---------------+ | 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 GBP27.5 million with a gross profit of GBP4.5 million and overheads of GBP5.5 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 GBP1. In addition, the Company will also pay a sum of GBP100,000 per year for ten years to the RBLACT. The Company is also raising approximately GBP1.98 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 GBP1 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 GBP1.3 million of the maximum GBP1.5 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 GBP1m 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. This information is provided by RNS The company news service from the London Stock Exchange END ACQGUUQCWUPBGMU
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