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Sectorguard - One to have a look at ? (SGD)     

Prophet - 12 Apr 2003 22:14

Sectorguard are a small AIM listed company who are aggressively taking on new security buisness. Strategy looks promising. Worth a look. If anybody has a view would welcome comments?

Prophet - 02 Sep 2003 04:33 - 9 of 31

This share is up 78% since I posted in April. I think there is a lot more to come as international terrorism will continue to worry companies in the economic upturn. Still lots of growth potential over the next few years. DYOR

Prophet - 08 Jan 2004 22:28 - 10 of 31

Well SGD continues to deliver. Over 100% since April and the results due out shortly should make for very good reading indeed.

tobyjug - 09 Jan 2004 12:55 - 11 of 31

8th Jan 04

From "watshot" this morning

In case you're not a subscriber




SectorGuard - a little 'penny stock' with big potential

Next Tuesday David Marks, boss of SectorGuard (SGD) *, the AIM listed specialist manned security providers, will be announcing his group's final results for the year to end September 2003. We already know that they will be good because Marks informed his shareholders just that in a Trading Update issued on 1st October last year.

Since then his Group's shares have risen in price from 30% to 4.125p. On the face of it you might think that we have missed the boat - however I say think again. Operating as it does in the highly rated support services sector this group's shares should be trading on between 15 to 18 times historic earnings, giving it a 5.5p to 6.5p price range. Ahead of next week's results and accompanying statement I reckon that the shares look undervalued and are worth buying.

David Marks founded SectorGuard in 1998 to satisfy the growing market demand for a security service provider that placed equal emphasis on security and service. As a Chartered Accountant with a successful track record in the facilities management sector, David sought to bring a high level of professionalism to all aspects of the business in this highly fragmented area.

Since 1998 the business has expanded steadily through organic growth and by following a careful acquisition programme. Today it employs in excess of 700 security officers at a number of sites throughout the UK. The Group works on long term contracts for some of the largest companies in the country, as well as many local authorities and educational establishments, often at multiple sites. It prides itself on building long-term relationships mainly through a stable, highly trained and reliable workforce and a very pro-active approach to client liaison.

In March 2002 the Group's shares were floated on AIM, raising 570,000 and valuing the business at 2.7 million. Subsequently it has completed a number of acquisitions which are listed below in chronological order;

June 2002 - the acquisition of the manned guarding, mobile patrol and keyholding contracts of Olympic Security Services

January 2003 - the acquisition of the manned guarding contracts of Gainsborough Events Security Services
March 2003 - the acquisition of the manned guarding contracts of the Southern Division of UK Guarding Services
April 2003 - the acquisition of the manned guarding, mobile patrol and keyholding contracts of London Alliance Contract Services , and in
June 2003 - the acquisition of the manned guarding contracts of First Response Security
SectorGuard has become one of the fastest growing business in its sector, developing strongly through a combination of organic growth complemented by strategic acquisitions. It supplies manned guarding, mobile patrols, key holding, alarm response and electronic security services. Contracts include top names such as Shell International, Canary Wharf Development, Oxford Brookes University, the London Borough of Brent, CGNU and Sun Life.

At the beginning of last October David Marks' group issued a Trading Update relating to the Company's 30th September year-end and highlighting its recent successes and growth strategy.

" The Company has continued its successful strategy of combining organic growth with expansion by acquisition and is enjoying strong trading. The increase in the critical mass of the business as well as the benefits we have derived from economies of scale will be reflected in our year end results, which are expected to be published in January.

SectorGuard has developed particular expertise in the education sector and during the course of the year has added Birkbeck College, Brunel University, Henley College, Henley Management College, The School of Oriental and African Studies and University College London to its client list. Longer-term clients include East Berkshire College, Guildford College and Regents College.

The growth in the education sector is in addition to steady growth, particularly through acquisition, in other industry sectors.

SectorGuard has an extensive client base with a strong presence in London and the Home Counties and has extended its geographical coverage to the Midlands and the South Coast of England. The Company will be looking to build on these operations in the coming year.

Since the beginning of the calendar year, SectorGuard has completed and integrated four acquisitions: the manned guarding contracts of Gainsborough Events & Security Services Limited in January; the London division of UK Guarding Services Ltd in March; the manned guarding business of London Alliance Contract Services Ltd in April; and First Response Security Services Limited in June. It is currently in negotiations with a further three potential acquisition targets.

SectorGuard has extensive cash resources available for both working capital and potentially to finance acquisitions.

In an analysis of the top 50 UK manned guarding businesses, financial analyst Plimsoll Publishing Ltd placed SectorGuard 24th in size and 8th in profitability.

SectorGuard believes its continued success is largely due to the efforts of its staff, which now number in excess of 700, and has continued its investment in staff development and training. The Company believes in the value of all employees being stakeholders in the future of the business, and in March this year made a second distribution of share options to all employees.

The Board looks forward to reporting on its progress in greater detail in this year's financial report."

It is that financial report that I look forward to next week. In an eight- page research note on the Company issued two months ago analyst Alan Matthews at brokers Seymour Pierce initiated his coverage. He concluded that the shares were on an undemanding rating.

"SectorGuard, the manned guarding security services company, has provided a positive trading update regarding its year to 30th September 2003. We see this business as one of the more interesting young support services companies, with an opportunity through a combination of organic and acquisitive growth to develop a meaningful support services business. Economies of scale for the business are very favourable."

Matthews also stated that SectorGuard's market is fragmented with plenty of opportunity to buy businesses, whilst reckoning that the recent acquisitions have provided critical mass and added to the growth profile. His profit estimates, which I table below, help to identify the shares as undervalued and very capable of being swiftly re- rated.

Year to end
September Turnover m Pre-Tax Profit m Earnings Per
Share Estimated PE Ratio
2002 A 7.4 0.6 0.38p 10.85
2003 E 11.5 0.9 0.36p 11.45
2004 E 17.0 1.1 0.40p 10.31

As I stated earlier at 4.125p SectorGuard's shares are undervalued and capable of a significant re-assessment upwards, perhaps next Tuesday's results announcement will attract fresh investor interest and get that process underway. Considering it is still early days in the development of this group it shares really should be valued a lot higher than they are currently.

Taking a one-year view I am confident that SectorGuard shares will outperform the market. Buying today is a cheap way into what should prove to be a real growth story.

Target Price by end 2004 of 7p, Stop Loss at 3p

(FT AIM - market capitalisation 8.5 million - 4 market makers in up to 50,000 shares)

tobyjug - 09 Jan 2004 14:36 - 12 of 31

Results definitely out on monday, so you have 2 hours to get in.

Prophet - 15 Jan 2004 21:23 - 13 of 31

Well the good news continues. Up 140% and still climbing!! Loads more to come.

gordon geko - 16 Jan 2004 13:49 - 14 of 31

plenty of volume will hopefully keep it moving north in yesterday based on
shares magazine article

Prophet - 14 Feb 2004 15:22 - 15 of 31

Nice little tick up. Sectorguard is going to rise through this year as investors pick up on the story to date.

stockbunny - 15 Feb 2004 10:03 - 16 of 31

Question - does anyone know the debt situation at the firm currently?
Read an article a while back and that struck me as the main concern...

overgrowth - 15 Feb 2004 18:50 - 17 of 31

See the following article (debt isn't of concern):

http://www.hemscott.co.uk/hstoday/focus_2004/SectorGuard_12_1_2004.htm

Prophet - 16 Feb 2004 20:08 - 18 of 31

Up another 2.5% today.

overgrowth - 17 Feb 2004 01:01 - 19 of 31

I reckon SGD are going to tick up steadily throughout the year with surges coinciding with further acquisitions.

The possibility of a tie in with David Marks' private company is likely to become more prominent as SGD grows.

In digging out the debt details I didn't properly read the hemscott article - typical financial journalese - In one breath quoting the excellent bottom line results "Pre-tax profits jumped 48% to 742,000 on sales 73% higher at 12.8m." and in the next breath saying that the current price looks high enough. Talk about hedging your bets!




dick dasterdly - 18 Feb 2004 22:00 - 20 of 31

tend to agree with previous post but newflow might be a problem

gordon geko - 20 Feb 2004 14:40 - 21 of 31

agree with previous posters newflow will be the issue need more exposure

moneyman - 11 Mar 2008 15:05 - 22 of 31

Lowest price it has ever been. Growing and pays a divi. Ive taken the opportunity to buy some cheap stock today at 1.6p

driver - 11 Mar 2008 16:35 - 23 of 31

On my watch list.

driver - 12 Mar 2008 12:13 - 24 of 31

Up 28%

moneyman - 12 Mar 2008 12:22 - 25 of 31

Pre-Close Trading Update




RNS Number:9356P
SectorGuard PLC
12 March 2008

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



12 March 2008

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

Pre-Close Trading Statement



SectorGuard Plc, the AIM listed total security solutions group, is pleased to
announce a pre-close trading update for the year ended 31 March 2007. As
highlighted in the interims, SectorGuard has grown its turnover year on year
since 1998 and this trend is expected to continue. The Company has invested
significantly in expansion initiatives, such as increased marketing, which are
now paying dividends in the form of strong current trading and future pipeline.
The acquisitions made over the last two years have been integrated successfully,
widening the geographic reach of the business and contributing to the Company's
financial performance.



During the current period, the Company has won a number of new contracts across
its four key divisions, the largest being a manned guarding contract with
Goldsmiths College, University of London, which further strengthens its position
in the education sector. It also renewed its service agreement with JD Sports
for the maintenance of CCTV and intruder alarm systems and was awarded security
service contracts with clients as diverse as BioPark Hertfordshire, Exxon Mobil,
Centrepoint and One Housing Group.



As well as winning new contracts, the Company has further expanded its service
offering and, during the year, Baroness Ruth Henig, chairman of the Security
Industry Authority, opened SectorGuard's Data Protection Suite. This facility
allows the Company to act as data co-ordinator for its clients and assists them
in meeting the requirements of the Data Protection Act.



In addition, the Company is pushing the boundaries of excellence having won
various key accreditations as well as renewing its existing accreditations.
SectorGuard was re-awarded its Approved Contractor Scheme ("ACS") status for the
private security industry, further improving on its scoring against the ACS
quality benchmarks and has achieved Investors in People accreditation. It is
also aiming to be one of the first security service providers to be accredited
with ISO 14001, Environmental Management Systems. This makes a powerful
statement about the Company's environmental credentials, which the directors
believe will increase access to new customers and business partners and will be
reflected in a stronger and more sustainable business.



Furthermore, SectorGuard was named as a 'Best Practice Champion' by the
Institute of Association Management, having started an Anglo-American exchange
programme for security officers from the UK and the USA to share best practice
in professional methods, training and management between the two countries.



SectorGuard CEO David Marks said: "We have put in a strong trading performance
and I look forward to delivering our results, which should reflect the progress
we have made and should exceed market expectations. The UK market demand for all
security products is growing rapidly driven by the threat of terrorism and
rising levels of crime and disorder. SectorGuard, with its broad range of
security services, is ideally positioned to take advantage of this growth as
highlighted by its recent contract wins. Our initiatives put in place last year
are now bearing fruit and we are positive about 2008 and beyond."



* * ENDS * *


moneyman - 12 Mar 2008 12:58 - 26 of 31

LONDON (Thomson Financial) - SectorGuard PLC said it expects results for the
year ended March 31 to exceed market expectations, driven by its strong trading
performance.
"The UK market demand for all security products is growing rapidly driven by
the threat of terrorism and rising levels of crime and disorder ... Our
initiatives put in place last year are now bearing fruit and we are positive
about 2008 and beyond," chief executive David Marks said in statement.
In its pre-close trading update, the specialist security provider added the
acquisitions made over the last two years have been integrated successfully.
It also said that expansion initiatives, like increased marketing have led
to strong current trading and future pipeline.

driver - 12 Mar 2008 17:50 - 27 of 31

moneyman
Good call on your top up well done.

moneyman - 13 Mar 2008 12:08 - 28 of 31

Thank you. Taking a look at BLNX and STL at present.
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