News Column

Pentagon Protection Reveals Extent Of Financial Woes

July 11, 2014

Steve McGrath

LONDON (Alliance News) - Pentagon Protection PLC, which is selling its trading businesses after getting into financial difficulty and becoming an investing company, Friday revealed the extent of the financial troubles it had faced.

It reported a GBP380,055 pretax loss for the six months to end-March, compared with the GBP2,788 profit it made a year earlier, as revenue more than halved to GBP596,412, from GBP1.7 million.

In April, the company had warned that said although it had a "relatively health sales pipeline" in each of its divisions, the timing of contract milestones and the conversion of new contracts had led to a deterioration in its cash and it was in talks to try and secure short-term financing.

Its shares were suspended in May as the company warned that its finances hadn't improved and it would likely need to appoint administrators. Later that month it sold its security division for GBP190,000 its its former chairman and 29.5% shareholder Haytham ElZayn. The consideration was taken off loans that the company owed ElZayn.

Late last month, the company convened a general meeting being held Friday asking shareholders to approve it going into a so-called company voluntary arrangement, the sale of its trading subsidiaries, and the adoption of an investing policy under AIM rules.

Shareholders will also have to approve a subscription offer that raised GBP611,600 to fund the CVA and provide working capital.

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Source: Alliance News

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