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Pentagon Protection
- BY: Andrew Hore |
- POSTED: 28/03/2010 |
Pentagon Protection more than doubled its turnover in the year to September 2009 but it continues to lose money.
The safety and security films supplier reported a rise in turnover from £1.44m to £2.95m but even excluding an exceptional provision the loss was £424,000, compared with a loss of £2.99m, including a goodwill impairment of £2.39m in 2007-08. Higher admin costs took up most of the additional gross profit generated.
There was a £926,000 provision relating to a warranty claim. This is due to a supplier supplying the wrong film. There appears to be a good chance that this could be sorted out before the end of this financial year so all or some of the provision could be written back.
David Marks was appointed chief operating officer at the beginning of March. Marks is experienced in the security sector having floated and run Aim-quoted Sectorguard (now Legion Group). He wants to firm up the foundations of the business and then build on its revenues and profit. Marks will not have a significant effect on the business until the second half of this financial year.
Rivington Street was recently appointed joint broker with Seymour Pierce.
Net debt was £37,000 at the end of September 2009. This figure is likely to have risen by now. Pentagon will need to raise some cash to provide additional working capital.
Marks would like to make acquisitions in the security products sector but this will not happen in the short-term.
At 0.42p a share, Pentagon is valued at £2.73m.
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