Armor group today produces spectacular performance and sets a milestone in quality security leadership throughout the world.

dikytree

Amorgroup Today Announces Major Contact win of up to $500mln / year.


RNS Number:0854M
ArmorGroup International plc
10 May 2005

10 May 2005



ArmorGroup International plc



Wins U.S. Department of State weapons removal contract





ArmorGroup International plc, the leading international provider of defensive
protective security services and security training services, announces today
that a team headed by ArmorGroup North America has been awarded a prime contract
by the United States Department of State's Office of Weapons Removal and
Abatement. The ArmorGroup team is one of three contractor groups selected for
the conduct of a five year global integrated weapons removal and abatement
programme which could extend to $500 million if all options are exercised.



The programme provides for all aspects of humanitarian mine action as well as
the destruction of small arms/light weapons and hand held surface to air
missiles in areas of recent conflict worldwide. The potential value of the
indefinite delivery/ indefinite quantity (ID/IQ) agreement, which has one base
year and four option years, is guaranteed at US $100,000 per awardee and could
be approximately US $100 million per year if all annual options are exercised,
and will be split between the three prime contractors. Projected revenues for
each prime contractor from this contract are undeterminable at this early
juncture due to the ID/IQ nature of the agreement and will depend on the
specific work orders awarded to each.



Under the terms of the award, the ArmorGroup team will compete for specific
projects with the other selected groups to provide project management, mine
clearance, mine risk education, victim assistance, weapons stockpile
destruction, and logistical support and training of local authorities to conduct
all facets of humanitarian mine action. The full ArmorGroup team will include:
Cranfield University, the leading strategic consultancy on humanitarian mine
removal; AlphaInsight, an award-winning Information Technology contractor that
provides significant services to the U.S. Department of State; Environmental
Chemical Corporation, a recognized subject matter expert in small arms,
munitions, weapons systems and UXO removal and destruction services; and EG&G, a
world wide leader in stockpile remediation and demilitarisation.



Jerry Hoffman, Chief Executive Officer, commenting on the contract said: "We are
extremely proud to be a part of the U.S. Department of State's Office of Weapons
Removal and Abatement team. This contract, which significantly builds our mine
and unexploded ordnance removal business, is vital to the humanitarian reduction
of landmines and unauthorized weapons worldwide. This award is in line with our
strategy to grow the business organically by pursuing larger, more demanding
contracts and demonstrates the Department of State's confidence in our expertise
and ability to support their global programmes.



The classified information required to carry out certain of the projects to be
performed pursuant to this contract will require ArmorGroup North America Inc.
and/or International Training Inc, two of the Group's U.S. subsidiaries, to put
in place arrangements to insulate them from the foreign control or influence
which arises by virtue of their ultimate parent, ArmorGroup International plc,
being a UK based entity. To achieve this, the Company intends to follow common
market practice in such scenarios and will shortly enter into Proxy Agreements.
Further details of these Proxy Agreements are contained in the Notes to Editors
below.





Enquiries:


ArmorGroup International plc
Jerry Hoffman, Chief Executive Officer Tel: +44 (0) 20 7808 5800
Nick Melson, Communications Manager


ArmorGroup North America
George Connell, President Tel: +1 (703) 356-0002


Citigate Dewe Rogerson
Patrick Toyne Sewell/Sarah Gestetner Tel: +44 (0) 20 7638 9571




Notes to Editors



ArmorGroup International plc.



ArmorGroup, which has its headquarters in London and a major office in
Washington DC, has over 7,700 employees and operations in over 26 countries. It
provides its services principally to first world national governments, major
international inter-governmental organisations and multinational corporations.
It operates principally in regions of the world with diminished law and order or
with a high risk of terrorism or which were former areas of conflict including
the Middle East, Africa, South America, the CIS and Asia. The Group listed on
the London Stock Exchange in December 2004. For more information please visit
www.armorgroup.com.



The use of Proxy Agreements has been regularly used by non-U.S. companies in the
security industry with operating subsidiaries in the United States that could
potentially have access to U.S. classified information. The integrity of the
classified information is protected by appointing three Proxy Holders to have
authority to exercise all voting rights with respect to shares owned by the
foreign company, in our case, ArmorGroup International plc, in its U.S.
subsidiaries. It is anticipated that the terms of the Proxy Agreements will
require the Proxy Holders not to accept direction from the Company nor permit
the Company to exercise any control or influence over the US subsidiaries.
However, the Proxy Holders will be obliged under these arrangements to act in
good faith to protect the legitimate economic interests of the Company and will
not be entitled to carry out certain fundamental actions without the express
written approval of the Company. The use of Proxies does not in any way impact
the financial reporting or recognition of revenues earned by such contracts,
merely the access to classified information to any foreign entities or employees
and the ownership control exerted by the foreign parent on its U.S. subsidiary.




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

dikytree:

Excellent news. I wonder if this contract win is on the back of the appointment of the ex-CIA bloke (after all he is a US connection). If so, it looks like he got he got his feet under the table pretty quickly!

rgrds
gk

I used to hold this but sold when it went stale, however, with its recent contract wins and the drop in the SP today it may be worth another look.

Armour group's fundamentals have been rapidly gaining over time - it has many contracts in place the future prospects are huge -- just happents to be suffering with only two brokers on the offer, same thing happened last time when Ab Amro's had a computer go down!

I am sticking this out even though it's past my S/L.

dikytree.

dikytree, any reason for the drop in your view ? as i said im out of these but would be interested if they drop below the price i paid last time..

jimmy b -

Management absolute tops - very forthright with investor relations - I have spoken to them about the volatility - and they say i'ts mostly due to only two brokers on the offer.

Relatively small volumes give wild swings, causing people to cash in, I'm holding 5k of these and will add as they increase!

One of the tip sheets -- can't remember which said ARG's earnings are comparable to Neteller ( totally different sector of course ) and will continue as future contracts are dealt with.

I don't believe there's any reason at all for the drop - just investors turning to traders!

dikytree.

Thanks for that, i think the tip sheet was scsw, about Jan time, thats when i bought.

Looks like it hit the bottom dikytree, on the way back now..

Yes jimmy b -- fudamentals still in place and improving -- didn't the market makers have fun!!!!!!!!!
Well done all those who held or topped up!!

I bought in to these again this morning, good value at this price.

Bought more! - Good recovery play - since price dropped by mm's for no reasons - increased contract activity - rapid response in the field.

dikytree.

Yes dikytree, not much action today though..

Action stations -- have they got more contracts?

dikytree:

Horrible day for me as I bought yesterday...!!!!!
The mm activities drive me mad.This is too punishing a drop for the message given out by ARG this morning.They have not said that they will run into a loss this year or anything BAD...in fact,they have opened a new office in the USA and have done very well (for a British company)in getting tenders in Iraq...yet the mms shove the sp down by nearly 20% even when buys outweigh sells.
I am sick of the seemingly irrational movement of share prices and their manipulation.All the tree shaking and price movements contradicting investor sentiment have made investing into a roller coaster ride where companies of true worth are ignored ,while companies that have'nt even produced anything yet see their share price allowed to go into orbit,forcing them to issue a statement claiming not to know why there has been the recent rise!!!
And who gets burnt...the ordinary,decent punter,who is just trying to ease his/her financial position and wants to provide for the pension pot.

Well,another good day for shorters I presume.

ethel

This is a very volatile stock that I have been into almost from it's launch. You will get bad days, but you will also get 5%+ rises for no apparent reason. Long term it looks like a good play - you were just unlucky with your timing. I would sit tight rather than cut & run (whoops am I giving investment advice).

regards
gk

A little comfort gallick,on a bleak end to what has been such a wonderful week for some others!!!
I agree it's a pretty volatile sp,and followers must be used to it by now.I'm just learning.
The savvy ones made a quick 15p profit on the swing this a.m.I noticed two big sells that went through after 2pm.Was that stop losses triggered,otherwise it was an untimely exit as the sp picked up afterwards.
I had NO idea that ARG was going to make this announcement and I think it was the use of "midterm" and 2006 that freaked the market.There is intense competition in the security world and I see now that tenders are the all important thing here.I hope that the remaining task orders are taken up before the results,otherwise I fear that I might have my money tied up for a while yet in this one!
Just hope that the support level stays here.The investors have time to digest this cruel sell off over the weekend and will hopefully return to this one.It only takes a new contract or two or three or four or .........

The massacre continues.I have become ill over this.Shorters'paradise,now through 180 and down.Horror.
Same sort of nightmare for Abacus holders.
As I don't do spread betting I am stuck in my situation.Have lost too much to sell now.My broker does'nt allow stop losses,hence my predicament.
LOL...Ethel

Recovery on the cards - looks like there could be substantial upside if the rise continues to return to the SP of a year or so back

Good point, GDP. I haven't looked into the figures lately, but have been eyeing this as a turnaround situation for a while.

Tell me please, have you seen any analyst recs or price targets out there?

ive been scouring them too - weighing up the potential upside.
I think everyone analyst etc has backed off since the collapse, perhaps a few were embarrased.
Thinking of taking the plunge before the Christmas break - maybe mix them witha a few more from CFU.