GB00B1RP7Y72/GBP/PLUS-exn
29/09/2008
SECURE FORTRESS PLC ("Secure Fortress" or "the Company")
Interim Results for the Six Months Ended 30 June 2008
Attached are the Company's interim results for the six months ended 30th June 2008 prepared under IFRS.
Highlights
* Losses halved as turnover more than doubles
* 19 new Patents awarded
* Over US$50 million of current bids in the pipeline
* Move to AIM planned for later this year
* Senior appointments made
* Operations successfully moved to Washington DC
* Relationships with Prime Contractors developed
Chairman's Statement
Consolidated turnover for the period was £2,647,356 resulting in a loss of £470,970. This much improved level
of activity compares with a result for the eleven months ended 31 December 2007 which showed turnover of
£928,111 and a loss of £1,066,594. However, the Company is still disappointed to report a loss; this is due
to aggressive pricing on our first Embassy contract and FBI contract and to some delays in revenue
recognition which unfortunately meant we could not show a break even position for the period as targeted.
However, David Crocker and his team have been updating the Company's processes and costing structure to
ensure that the margins improve on all contracts moving forward.
These results substantiate the comments in my statement attached to the results for the period ended 31
December 2007 and show the benefits of the hard work and focus on the Fortress products in previous trading
periods by the trading subsidiary, Zephyr Communications Inc.
The Company is pleased to report that during the period it was awarded a further 19 patent actions further
solidifying our unique position in the growing secure structured cabling market.
The Board have also been working on an AIM admission which is targeted for before the end of this year. An
AIM admission will, among other things, better allow us to finance potential acquisitions, raise additional
working capital when needed, strengthen our vendor relationships, and attract and retain talent.
The Company further strengthened its balance sheet when Members of the Board of Directors and certain
staff of Secure Fortress Plc converted all of their Company held debt of £437,000 into a 10% Mandatory AIM
Convertible Loan Note. The various note instruments were all listed as short term liabilities on the
company's Balance Sheet and will be classified as long-term debt.
The Company has also completed the recent move to the office in the Washington DC corridor to be closer to
our clients and the management team, under the able leadership of retired Rear Admiral David Crocker, has
been further strengthened to meet our growing pipeline and to better service the higher level Prime
relationships that we have been developing.
In addition, we are currently waiting on a number of project award decisions and while there are no
guarantees that we will be awarded any of those contracts, we do feel confident that we should be making some
positive announcements before year end.
Respectfully,
R Berman Chairman
26 September 2008
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2008
6 months to 11 months to
30 June 2008 31 December
2007
Unaudited Audited
£ £
Continuing operations
Revenue 2,647,356 928,111
Cost of sales (2,418,638) (723,569)
Gross profit 228,718 204,562
Distribution costs (89,771) (113,382)
Administrative expenses (556,605) (1,080,741)
Operating loss (417,658) (989,581)
Investment income 82 (2,912)
Finance costs (53,394) (74,101)
Loss on ordinary activities before tax (470,970) (1,066,594)
Taxation - -
Loss for the period (470,970) (1,066,594)
Loss per share - basic (0.39p) (0.88p)
The financial information for the period ended 30 June 2008 has not been audited and does not
constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The
financial information for the period ended 30 June 2008 has, however, been reviewed by the issuers'
auditors.
The Directors of the issuer accept responsibility for this announcement.
CONTACT:
Secure Fortress Plc Alex Clug aclug@securefortress.com
St Helen's Capital Plc Duncan Vasey Duncan.vasey@sthelenscapital.com
Public Relations Henry L Gewanter, HenryG@PositiveProfile.com
Tel: 020-7489-2028 (Office)
07774-228845 (Mobile)
Secure Fortress plc