Pentagon Protection

Pentagon, the specialist supplier and installer of anti-shatter window films and bomb blast protection products, reported rising gross margins and significantly pared losses for the year to September.

Following a first-half restructuring – involving a scythe taken to senior management and boardroom-level costs – operating losses from ongoing business were reduced by 71% to £330,000. Turnover growth was modest yet encouraging, up 7.4% to £1.74m, and chairman Alan Nicholl flagged up further sales progression since the year-end.

He insists that Pentagon is strongly placed to take market share not only in its traditional enhanced glass protection market, but also in the energy saving sector, where its ‘Infra-Max’ energy-efficient films contribute to carbon emission reduction efforts. He calls Infra-Max ‘without doubt the most exciting development in our industry since the introduction of bomb blast protection in the 1970s’.

Pentagon finished the financial year with significant contract wins in Austria, Iraq and the UK, which have got the group off to a flying start to 2007-08. Looking ahead, a push for more energy-efficient buildings from the EU underpins prospects in Europe, while Singapore and China, the Middle East (where Dubai offers possibilities), the US and Russia offer good growth possibilities.

Contributing to the global security effort and also boasting green credentials, this penny share (which has fluctuated between 52-week highs and lows of 1.88p and 0.75p) is a high-risk but thoroughly worthy investment. Speculative buy.

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