Acquisition

RNS Number:1074Q
SectorGuard PLC
14 March 2008



     SectorGuard Plc / Ticker: SGD / Index: AIM / Sector: Support Services

14th March 2008

                SectorGuard Plc ('SectorGuard' or 'the Company')

                Expands manned guarding business via acquisition


SectorGuard plc, the AIM listed total security solutions group, announces that
it has conditionally agreed to acquire ManGuard Limited ('ManGuard') for an
initial consideration to be satisfied by the issue of 40 million New Ordinary
Shares and £3.5 million in cash. The acquisition is part of the Company's
strategy to acquire companies in the manned guarding arena and increase its
position as a leading provider of total security solutions. A further amount of
up to a maximum of £3 million may become payable over the next 24 months
depending on certain turnover and other performance criteria being achieved by
the ManGuard business. The conditions are expected to be satisfied during the
course of the next ten working days, whereupon completion will take place.


ManGuard has been trading for seven years and has an extensive client list
across a number of sectors including national health service, education, rail
networks and shopping centres. Clients include the Covent Garden Market
Authority, Network Rail, Nottingham University Hospital and WH Smith. Following
a restructuring programme and significant organic growth, ManGuard is now
trading profitably and is expected to generate gross profit in excess of £2
million for this current financial year. For the 15 month period ending 31 March
2007 it reported a turnover of £11.4 million and a loss before tax of £586,000.
As at 31 March 2007, ManGuard had net liabilities of £482,000.


As part of the transaction, Mark Higgins, the vendor of ManGuard, will join the
Board of SectorGuard as an executive director. He brings extensive experience of
the sector and will assist in the expansion of the Groups offering and client
base.


SectorGuard CEO David Marks said: "This acquisition is a further step in our
growth strategy aimed at aggressively building our critical mass in the security
arena. The acquisition will also widen the Company's market penetration,
increase its exposure to multi manned sites and places SectorGuard in the top 20
providers of manned guarding solutions. The deal is expected to be highly
earnings enhancing and the Board believe it will significantly impact future
financial performance. I'd like to take this opportunity of welcoming Mark to
the Board and I look forward to working with him, integrating the businesses and
achieving our growth objectives."


The following information is provided in accordance with Schedule 2 of the AIM
Rules:


Mark Anthony Higgins, aged 44, is, or has been in the past five years, a
director of the following companies:

Current                   Past
ManGuard Limited          Leisure Security Consultants Limited
                          New Hope Care Limited


Mr. Higgins was a director of Leisure Security Consultants Limited, which was
placed in creditors voluntary liquidation in 2000.


Upon his appointment to the Board of SectorGuard, Mr Higgins will be employed on
a service agreement with a basic salary of £50,000 with a notice period of 3
months.


                                  * * ENDS * *


For further information visit www.sectorguard.plc.uk or contact:

David Marks           SectorGuard Plc                    Tel: [phone]
Isabel Crossley       St Brides Media & Finance Ltd      Tel: [phone]
Jonathan Wright       Seymour Pierce Limited             Tel: [phone]


Notes

SectorGuard, founded in 1998, supplies total security solutions across the UK.
It has four key divisions: fire & security systems, response services, retail
security tagging and security personnel servicing a broad range of public and
private sector clients.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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