STEC Shieldtech

 

TIDMSTEC 
 
RNS Number : 6813M 
Shieldtech PLC 
28 May 2010 
 

 
                                                    28 May 2010 
                                 Shieldtech plc 
 
                       Contract Awards and Trading Update 
 
Shieldtech plc (AIM: STEC), the specialist provider of products and services to 
the Homeland Security market, is pleased to announce the award of two major 
contracts to its subsidiary, Aegis Engineering Limited ("Aegis"), and a general 
group trading update. 
 
Metropolitan Police Authority National Framework Agreement 
 
Aegis, has been appointed as a potential supplier under the 'National Framework 
Agreement for the Supply of General Patrol Body Armour' to various UK Police 
Forces and other Public Sector Organisations.  This Agreement will commence on 1 
June 2010 and will run for a period of four years, expiring on 31 May 2014. 
 
The Agreement, which potentially includes 25 UK police forces, has an overall 
estimated value of GBP33 million over its term. Out of approximately 32 
suppliers who originally expressed an interest in being a supplier under the 
Agreement, four, including Aegis, have been chosen. The eventual levels of 
participation in the Agreement by each of the four will be decided by a series 
of mini-tenders. 
 
Aegis' body armour systems involve new lighter weight designs and materials 
including alternative ballistic constructions as well as advanced material 
treatments developed and registered to Aegis. These highly innovative materials 
and treatments, have all been checked by independent testing houses, add 
significantly to wearer comfort, ease of garment maintenance, durability and 
protection; treatments are registered under the names Sol-Guard  Ion-Fresh  and 
Nano-Dri . The ergonomic design of armours has been developed with the 
co-operation of top ergonomists and John Moores University, Liverpool. 
 
GBP1.0 million contract to supply Turkish national police force 
 
Aegis has also been awarded a contract to supply the Turkish national police 
force with ballistic panels in June 2010. This contract has a value of 
approximately GBP1.0 million. 
 
Trading update 
 
As previously reported, the lack of demand in the UK police market in our 
current financial year has been mainly attributable to delays in the award of 
the above Met Framework Agreement and the timing of the tender for the Thames 
Valley Police framework contract which was only recently announced. An upturn in 
this sector of the market is now not expected until the first quarter of the 
next financial year at the earliest.  Aegis has continued to pursue new product 
and customer opportunities in export markets, including the Turkish contract 
referred to earlier. However, there have been delays in anticipated business 
volumes in certain countries, including Belgium where political problems have 
disrupted tendering processes, which are now likely to defer certain revenues 
and profits from this activity into the next financial year. 
 
As a result, the outcome for this financial year is likely to be below current 
market expectations, with turnover marginally below the level reported for the 
previous year. Despite this, the awards announced today and a number of 
significant product developments due to be launched into international markets 
confirm the Board's confidence in the future prospects for the group. 
Commenting on the announcement, Tony O'Neill, Chief Executive Officer of 
Shieldtech plc, said: 
 
"We are delighted to have been chosen to participate in this long awaited 
Agreement, which clearly demonstrates our ability to competitively deliver 
leading products in this market. In addition, the Turkish national police 
contract is a significant step forward in building our international platform as 
we continue to expand our business overseas with a growing network of agents and 
distributors. 
 
"We will continue to work to ensure that our products remain at the forefront of 
body defence technology, enabling us to capitalise further on our position as a 
leading supplier of highly innovative and cost effective solutions for clients 
across the globe. 
 
"As demonstrated by the two contract wins announced today, Shieldtech has a very 
attractive pipeline of new business activity, the full financial benefit of 
which will become evident in the next financial year." 
 
Contacts: 
+---------------------------------------+-----------------------+ 
|                                       |                       | 
| Shieldtech plc                        |                       | 
| Tony O'Neill, Chief Executive Officer |     Tel: +44 (0) 1925 | 
| Paul Grundy, Group Finance Director   |                840048 | 
|                                       |                       | 
+---------------------------------------+-----------------------+ 
| Seymour Pierce                        |  Tel: +44 (0) 20 7107 | 
| Nicola Marrin/Mark Percy (Corporate   |                  8000 | 
| Finance)                              |                       | 
| Richard Redmayne (Corporate Broking)  |                       | 
+---------------------------------------+-----------------------+ 
|                                       |                       | 
| Buchanan Communications               |  Tel: +44 (0) 20 7466 | 
| Tim Anderson / Isabel Podda / Ben     |                  5000 | 
| Romney                                |                       | 
|                                       |                       | 
+---------------------------------------+-----------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCPGUAWAUPUGAM 
 

Shieldtech (LSE:STEC)
Historical Stock Chart
From Oct 2024 to Nov 2024

Shieldtech (LSE:STEC)
Historical Stock Chart
From Nov 2023 to Nov 2024