Sectorguard is a rapidly expanding company (huge increases in turnover, profits and net assets) and despite this the share price has stayed around the 2.75p level. The shares are bound to rise (in my opinion) but when? Does anyone have any opinions?

Has anyone noticed the 10% rise in SGD today? And for no apparent reason. Lower than average voulme, perhasp a RNS is imminent Has been tipped by both IC and Shares Mag in the not too distant past. Profitable, maiden dividend and very, very acquisitive. I continue to be surprised that the company does not enjoy greater support amongst investors.

Regards

PTH

Couple of massive buys for this little gem which has been lying suprisingly dormont in my portfolio - what is ahead I wonder

update of shares magazine tip from 2004 saying still good value on forward p/e of 8
says hse broker cust this years forecast to 1m due to the training required due to
the licensing of security gaurds this will be money well spent as some small gaurding companies will clearly decide not to invest this money and sell up to perhaps SGD ....

good set of results with final divi doubled


SectorGuard PLC
12 December 2005


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

12 December 2005

SECTORGUARD PLC

PRELIMINARY RESULTS


SectorGuard plc, the AIM listed total security solutions group, announces its
results for the year ended 30 September 2005.


Overview


Focused on developing the geographical spread of the business
and range of products and services to become a total security solutions
company

Solid growth achieved during the year with turnover up 17% to 16,375,000
(2004: 14,049,000) and gross profit up 10% to 3,008,000 (2004:2,731,000)

Cash balance at year end 940,000 (2004: 258,000) and net assets of
8,169,000 (2004: 4,692,000)

Dividend doubled to 0.1p per share

Expanding shareholder base with a number of new institutional investors

Continued growth organically with significant contracts won in key target
areas and by acquisition with four acquisitions completed in the year

Anticipate being one of the first companies to achieve SIA's Approved
Contractor Status


Chairman


I am pleased to present the results for the year ended 30 September 2005. It
has been another year of solid growth, building on the firm foundations set
since our incorporation in 1998. SectorGuard is currently in a strong position
and has an exciting future as we focus on developing both the geographical
spread of the business and the range of products and services we can offer our
clients.


Through the acquisition of two companies specialising in the installation and
maintenance of electronic systems we are now well placed to provide clients with
a total security solution ranging from risk assessment to the provision of
physical security measures such as security officers, CCTV, access control and
asset tagging. Our intention is to keep building on the strengths of the Group
both organically and by acquisition and to continue the development of the range
of security services we can offer.


Additionally, we have continued to expand the shareholder base and I am pleased
to report that the equity issued during the year to finance acquisitions was
placed with a number of institutional investors. This was with a view to
building relationships with these investors to assist in the long-term
development plans of the Group.

Financial results


Our results for the year ended 30 September 2005 show a 17 per cent. increase in
turnover to 16,375,000 (2004: 14,049,000) resulting in a gross profit of
3,008,000 (2004: 2,731,000) and net cash inflow from operating activities of
1,264,000 (2004: 90,000). The Group had 940,000 cash at bank at the year end
(2004: 258,000) and net funds of 239,000 (2004: net debt 992,000). Net assets
at the year end had increased 74 per cent. to 8,169,000 (2004: 4,692,000).


As reported in the interim statement, licensing of security officers under the
Security Industry Authority (SIA) will be compulsory by 20 March 2006.
SectorGuard has set itself a target of obtaining licenses for all existing
security officers by the end of December 2005, to ensure that the business does
not suffer from any delays occasioned through backlogs in license application
processing. Licensing the existing staff has created two additional,
non-recurring costs, re-training the officers and the cost of collating and
processing all the license applications and associated documents. This
additional expenditure is reflected in the profits and has resulted in a
temporary 1 per cent. reduction in gross margin. We are confident this reduction
in margin will be recovered in the current year.



As underlying profits are continuing to rise we have pleasure in proposing an
increased dividend of 0.1p per share from 0.05p per share in 2004.



Acquisitions


As part of our strategy we are focused on growing the business through
acquisition and last financial year we completed four deals. As well as adding
to the turnover and profitability of the Group, these acquisitions added
significant resources to the Group's management team, and provided us with a
platform for building a total security solution business. By combining the
provision of complementary services and products, such as electronic perimeter
protection and traditional manned guarding, within one business we can tailor
efficient and effective security solutions for our clients and provide the Group
with greater opportunities for organic expansion.


In December 2004 we acquired the manned guarding contracts of two Midlands based
businesses: Nationwide (GB) limited based in Grantham and Choice Security
Services Limited based in Stourbridge. These acquisitions have enhanced our
client base in that region and have provided us with a solid base for building
the geographic spread of our business.


On 4 April 2005 we completed the acquisition of SectorAlarm Limited, a company
specialising in the installation and maintenance of electronic security systems.
On 16 September we acquired Asset Protection (EAS) Limited, which specialises in
installing and maintaining electronic asset tagging systems, principally for the
retail sector.


Since the year end, SectorAlarm acquired Oakpark Alarms, the intruder alarm
maintenance business of Oakpark Security Management Limited, based in Surrey.


Organic growth


As in previous years the growth through acquisitions has been supplemented with
organic growth. This year we have won significant contracts in all of our key
target areas of higher education, local authority, commercial and not for profit
organisations.


We believe that one impact of SIA licensing will be the re-distribution of
contracts to those companies that achieve the SIA's Approved Contractor Status.
As stated in our recent trading statement, whilst the full details of the scheme
are as yet un-confirmed, SectorGuard has taken a lead role in the development of
the scheme and we anticipate being one of the first companies to achieve this
status. As a result we believe that we will obtain significant organic growth in
manned guarding turnover over the next two years and we have built our sales
team to allow us to benefit from this and other opportunities such as the
expansion into the Midlands. We are also integrating the sales teams from each
of the trading companies into one sales office with specialist divisions. This
should facilitate the cross-selling of products and services as opportunities
arise.


Current trading


In a four year period our turnover has grown by 400% leading to a significant
increase in head office staff. In order to cope with this and future expansion
we are moving to new premises later this month that will accommodate our three
trading companies under one roof and double the size of the control room. I
would like to take this opportunity to thank all the members of the project team
who are working to make this move as seamless as possible.


The current year has started well with all three trading companies winning new
contracts, and the completion of the acquisition of Oakpark Alarms which adds
significant density to our client base in Surrey. We are confident that our
strategy of growing the Group and building the SectorGuard brand through
acquisition, organic growth and attention to service levels will continue to
benefit all stakeholders. I look forward to reporting on our further progress
when we publish our interim report.


Consolidated Profit and Loss Account

for the year ended 30 September 2005


2005 2005 2004
Notes

Turnover
Existing operations 15,511,411 14,048,604
Acquisitions 863,686 -
3
Continuing operations 16,375,097 14,048,604
Cost of sales (13,366,903) (11,317,173)
Gross profit 3,008,194 2,731,431
Administrative expenses before goodwill amortisation (1,852,751) (1,536,328)
Operating profit before goodwill amortisation 1,155,443 1,195,103
Goodwill amortisation (324,672) (212,256)
Operating profit
Existing operations 610,764 982,847
Acquisitions 220,007 -
Continuing operations 830,771 982,847
Interest receivable and similar income 7,414 4,949
Interest payable and similar charges (118,514) (102,439)
Profit on ordinary activities before taxation 719,671 885,357
Tax on profit on ordinary activities (206,076) (284,055)
Profit on ordinary activities after taxation 513,595 601,302
Equity dividends (305,125) (102,878)
Retained profit for the financial year 208,470 498,424

Earnings per ordinary share
Basic 3 0.23p 0.30p
Diluted 3 0.22p 0.29p
Basic (based on pre amortisation earnings figure) 3 0.35p 0.38p
Diluted (based on pre amortisation earnings figure) 3 0.35p 0.37p


There were no gains or losses in the year other than those included in the above
Profit and Loss Account.



Consolidated Balance Sheet

as at 30 September 2005
2005 2004

Fixed assets
Intangible assets 7,033,171 3,743,955
Tangible assets 295,073 259,839
7,328,244 4,003,794
Current assets
Stocks 137,604 -
Debtors 4,061,104 3,592,230
Cash at bank and in hand 940,434 258,230
5,139,142 3,850,460
Creditors: amounts falling due within one year (3,123,565) (2,707,143)
Net current assets 2,015,577 1,143,317
Total assets less current liabilities 9,343,821 5,147,111
Creditors: amounts falling due after more than one year (288,442) (395,346)
Provisions for liabilities and charges (886,555) (60,000)
Net assets 8,168,824 4,691,765

Capital and reserves
Called up share capital 1,525,625 1,028,777
Share premium account 4,761,083 2,090,337
Merger reserve 158,395 -
Own shares in employee share trust (57,400) -
Profit and loss account 1,781,121 1,572,651
Shareholders' funds 8,168,824 4,691,765


The accounts were approved by the board of directors on 9 December 2005 and were
signed on its behalf by:


D Marks

Director


Company Balance Sheet

as at 30 September 2005
2005 2004

Fixed assets
Intangible assets 4,089,944 3,743,955
Investment in subsidiary undertakings 2,679,845 -
Tangible assets 237,035 259,839
7,006,824 4,003,794
Current assets
Debtors 3,923,980 3,592,230
Cash at bank and in hand 751,281 258,230
4,675,261 3,850,460
Creditors: amounts falling due within one year (2,720,640) (2,707,143)
Net current assets 1,954,621 1,143,317
Total assets less current liabilities 8,961,445 5,147,111
Creditors: amounts falling due after more than one year (188,442) (395,346)
Provisions for liabilities and charges (886,555) (60,000)
Net assets 7,886,448 4,691,765

Capital and reserves
Called up share capital 1,525,625 1,028,777
Share premium account 4,761,083 2,090,337
Own shares in employee share trust (57,400) -
Profit and loss account 1,657,140 1,572,651
Shareholders' funds 7,886,448 4,691,765

The accounts were approved by the board of directors on 9 December 2005 and were
signed on its behalf by:


D Marks

Director



Consolidated Cashflow Statement

For the year ended 30 September 2005
2005 2004


Net cash inflow from operating activities 1,264,274 89,568
Returns on investment and servicing of finance
Interest received 7,414 4,949
Interest paid (112,814) (98,366)
Finance lease interest paid (5,700) (4,769)
(111,100) (98,186)
Taxation
Corporation tax paid (284,914) (240,836)
Capital expenditure
Payments to acquire tangible fixed assets (174,567) (142,563)
Proceeds from disposal of tangible fixed assets 55,494 -
(119,073) (142,563)
Acquisitions & Disposals

Payments to acquire subsidiary undertaking - SectorAlarm Ltd (275,496) -
Payments to acquire subsidiary undertaking - Asset Protection (1,623,321) -
(EAS) Ltd
Payments to acquire business assets (520,742) (401,748)
Net cash acquired with subsidiary - SectorAlarm 25,806 -
Net cash acquired with subsidiary - Asset Protection (EAS) Ltd 131,700 -
(2,262,053) (401,748)
Equity Dividends Paid (102,878) -
Net cash outflow before financing (1,615,744) (793,765)
Financing
Issue of ordinary share capital 3,267,264 154,950
Expenses paid in connection with shares issued (122,298) (8,560)
Purchase of own shares by employee share trust (57,400) -
Repayment of loans (283,303) (437,751)
Bank working capital facility (448,601) 448,601
Capital element of finance lease payments (57,714) (42,720)
New finance leases - 101,607
2,297,948 216,127
Increase/(decrease) in cash in year 682,204 (577,638)


Notes:

1. The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30 September 2005 or 30 September 2004
but is derived from these accounts. Statutory accounts for 2004 have been
delivered to the Registrar of Companies in England and Wales and those for 2005
will be delivered following the Company's Annual General Meeting.

The auditors have reported on the 2004 accounts and their report was unqualified
and did not contain statements under section 237 (2) or (3) of the Companies Act
1985. The figures included in this announcement have been prepared on the basis
of the accounting policies set out in the 30 September 2004 financial
statements.

2. The directors recommend the payment of a dividend of 0.1p (2004: 0.05p)
per ordinary share payable on 24 February 2005 to ordinary shareholders on the
register at the close of business on 3 February 2005.



3. Earnings per share
The earnings per share is based upon a profit of 513,595 (2004: 601,302)
and the weighted average number of shares ranking for dividend during the
year of 226,724,448 (2004: 203,760,229).

The fully diluted earnings per share is based upon the profit as disclosed above
and the weighted average number of shares ranking for dividend during the year
of 228,770,896 (2004: 209,639,260) adjusted for the effects of all dilutive
potential shares.



An adjusted earnings per share figure has been calculated in addition to the
earnings per share required by FRS 14, 'Earnings per Share'. The directors
believe that the presentation of an adjusted basic earnings per ordinary share,
being the basic earnings per ordinary share adjusted for goodwill amortisation
assists with understanding the underlying performance of the group. The basic
earnings per share calculated on this definition of earnings is based upon a
profit of 793,196 (2004: 774,558).



The fully diluted adjusted earnings per share is based upon the profit as
disclosed above and the weighted average number of shares ranking for dividend
during the year of 228,770,896 (2004: 209,639,260) adjusted for the effects of
all dilutive potential shares.



4. Copies of the published accounts of the Company will be sent to all
shareholders and will be available during normal business hours from the offices
of Seymour Pierce Limited at Bucklesbury House, 3 Queen Victoria Street, London
EC4N 8EL.

Contacts:

David Marks SectorGuard Plc Tel: 01279 724 777

Hugo de Salis/Isabel Crossley St Brides Media Tel: 020 7242 4477


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

Why such a low dividen...wouldn't this cash be better held and re-invested? Have I missed a point!

Also...good news of a company steafily growing....but no reaction from the market...whats that about?

Times today
Sectorguard ticked up .25 to 3.75 as Seymour Piers used slighty better than expected full year figures to repeat "buy" advice on the manned guarding group, which it expectes to benefit from tighter regulation of security personnel from March.

well ran business with improving yield but lack exposure and needs to sort out the buy/sell spread if to move forward have suggested share split but they say not considering it in the shot term

Share split sounds a good idea to me. Long term holder but the lack of movement is frustrating.

Winter not a good time for Security Companies - but watch this little baby move in the Spring.

An upbeat AGM statement delighted investors in SectorGuard, and its shares added 0.375p to 3.875p. The company said it was well placed to pitch for significant new contracts after declaring that all its security officers were now licensed ahead of the March 20th 2006 compulsory licensing deadline set down by the Security Industry Authority. Considerable progress has been made during the year and SectorGuard now believes it is set to become a leading total security solutions provider.

nice to see SP move above 4p and spread contracting to .25p why cannot this be
the norm??

Reasonable spread may be because the MMs have a large buyer in the wings. Nice early buys this morning. 5p by 1 May !!

shares mag suggest fair value toward 5p support by Seymour Pierces comments
and the recent Renotkill deal seems to be moving in that direction

cannot see them below 4p again

nice rise and good volume has it got a mentuion anywhere as 5p looks likely

was tipped by RHPS on Friday after close anyone ideas of target price ?

Much interest and nice rise in SP to-day. Any info or views on why ??

was tipped by RED hot penny shares which has fairly big following

Thanks gordon - momentum continues - Spring and Summer much better period for security sector.

if the CEO cannot hang onto his shares why should we ?
I sold @ 4.5p at last lot of results this ones going nowhere in my opinion ...

From todays results

We are now in a very strong position to achieve substantial growth in all areas
of our business, delivering significant increases in shareholder value.