Pentagon Protection to focus on building products

The UK“s Pentagon Protection PLC is to seek a buyer for its automotive division after incurring losses and large exceptional write-offs in fiscal 2005. The group will concentrate on its core business…

The UK“s Pentagon Protection PLC is to seek a buyer for its automotive division after incurring losses and large exceptional write-offs in fiscal 2005. The group will concentrate on its core business of supplying and installing blast protection film for buildings. This division was also loss-making in 2005, the company said on 24 February 2006, but demand is now increasing. Pentagon also said it is in advanced negotiations on the acquisition of one of the UK“s leading flat glass film application companies. The target company has a healthy order book, a good spread of clients, and an experienced management team, Pentagon said. Pentagon said the sale of its automotive division will take place as soon as possible. The firm said 2005 was a challenging year. Substantial losses at its automotive division made demands on management time and consequently on the performance of the company“s buildings division, which the group said will also report a loss despite a growing international business. In the 1Q 2006, the contribution of overseas sales to revenue at the buildings division increased to 50% of all sales, up from 20% in the same period of 2005. Pentagon said it has decided to take full advantage of the rapid growth in demand for blast and weather protection film application on buildings worldwide. The company 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 the company“s products in the USA. The company said it will seek to open more offices and sign distributor deals around the world in 2006. Chief executive Graham Bannerman said there is rising demand around the world for protective window film for buildings, which is being boosted by the growing number of conflicts and concern about terror attacks. Pentagon will announce its results for the year ended 30 September 2005 in the latter half of March 2006.