Security firm moves jobs to its North East base
Nov 20 2008 by Karen Dent, The Journal
ANTI-COUNTERFEITING company OpSec Security’s North East base is set to benefit from a cost cutting programme put in place across the group.
The Washington AIM-listed business, which yesterday revealed a 16% jump in interim revenues but a fall in profits, plans to rationalise the work of some of its new acquisitions.
Manufacturing from Surrey-based Light Impressions, which makes holographic authentication devices and was acquired by OpSec in a deal worth more than £6.5m, will move to the North East, said the group’s broker Oriel Securities.
OpSec, which operates globally, is also reorganising its offices on the East Coast of America and the group is looking to save money by sourcing raw materials and services from different suppliers.
OpSec chairman David Mahony said: “Due to our significant and largely completed investment programmes in both the UK and America, we are now able to implement plans to reduce operating costs whilst retaining the ability to service all existing customers and expand production in areas when and where this is required.”
The company posted a 16% increase in revenue to £18.9m in the six months to the end of September, but pre-tax profits were down to £367,000 from £859,000 in the same period last year.
However, brand protection revenue was up by 56%, largely due to its acquisitions, which included the £8.1m takeover of German internet security firm P4M. Brand protection, which Light Impressions is also part of, is the biggest section of OpSec’s business and showed no sign of slowing down despite the gloom in the wider economy.
Turnover in its ID Solutions section, which mainly services Government bodies, was down by 10%, but the group said the second half of the year was historically more profitable for this part of the business.
OpSec’s Banknote and High Security Documents wing, which also depends on a small number of public sector clients, suffered a 20% drop in turnover. The expected level of business from the Middle East did not materialise and the company said it had been notified that this work may now go to a more local supplier.
Mr Mahony said: “The potential loss of the business in the Middle East would impact the European operations. However, the Light Impressions acquisition, and other business that is currently being pursued, would, to some extent, offset the impact of this.”
Despite the unsettled global economy, Mr Mahony said he was confident OpSec’s services would remain in demand.
“Given the worldwide interest in security in all its forms we regard it as unlikely that the markets which we serve will not continue to grow relative to other economic sectors.”
But he warned: “That said, it is probable that there will be areas where budget constraints or general uncertainty lead to the timing of programmes being revised.”
