Security Research to buy back shares & cut back staff

Security Research Group, the security and safety consultant formerly known as PSG Solutions, saw interim profits more than double, paving the way for another return of funds to shareholders through a tender offer to buy back shares.

Revenue in the six months to September 30th jumped to £25.8m from £20.8m the year before, while profit before tax zoomed to £8.59m from £3.87m. Diluted earnings per share leapt to 26.56p from 11.08p at the halfway point of last year.

The group did concede that the order book is comparatively low, but said that this was because all hands been called to the pump to work on the firm's contract with the Ministry of Defence (MOD).

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It maintained, however, that the prospects for the group are "decidedly positive" as it has "proved very adept in the rapid development, manufacture and delivery, on time and within budget, of a sophisticated complex volume product."

As the manufacturing requirement winds down in respect of the MOD contract the company has decided to make a number of staff at its Corby plant redundant.

The company said it is planning a repeat of its previously successful tender offer to buy back shares at 225p a pop; this time round the offer will be on the basis of one share purchased for every five held.

JH