Pentagon Protection: loss-making unit sold

Pentagon Protection has disposed of Pentagon GlassTech Ltd, its loss-making automotive division, and its related automotive franchising division Pentagon GlassTech Franchising Ltd, it was announced on…

Pentagon Protection has disposed of Pentagon GlassTech Ltd, its loss-making automotive division, and its related automotive franchising division Pentagon GlassTech Franchising Ltd, it was announced on 15 May 2006. The group said the businesses have been sold for a nominal cash amount inclusive of all liabilities to the existing management, Peter Mukherjee and Geoffrey Russell, the original founders of the divisions. The move confirms the strategic restructuring and divestment announced on 24 February 2006, which is aimed at improving the company“s prospects for sustainable growth. The division has incurred substantial losses over the last two years. Its disposal will enable Pentagon to focus entirely on its commercial flat glass business that offers the highest potential for generating profits. In the 1Q 2006, the contribution made by overseas sales to revenue at the commercial flat glass division increased significantly to 50% of all sales, up from 20% in the same period of 2005. The company said demand for blast and weather protection film application on buildings is growing rapidly around the world and it determined to take full advantage. The firm already has offices in the UK, continental Europe, the Middle East, and has signed a distribution agreement with Mr. ElZayn, Chairman of Allegiance Holdings LLC, for the sale and distribution of its products in the US. The company will look to open more offices and sign distributor deals around the world in 2006. Graham Bannerman, chief executive of Pentagon said: “The disposal of these businesses is part of our ongoing strategic restructuring and we are very pleased to have completed the sale. The Senior management will now be able to focus all their efforts on growing the core business and we are excited about the prospects for growth in this area”.