Talking about the next Silent Witness, then here you go.
United Security Protection -UZZ- Toronto Stock Exchange
A recession proof business.
You will find a management team in United that is committed to growing this company to over $150 million in the next year and over $300 million in the next three years. They’re growing revenue at a faster pace, increasing gross margins and expenses are growing less dramatically. There is sufficient growth and future potential to warrant a much higher share price. The niche, the acquisition opportunities it presents and the recurring nature of the revenue stream are all reasons to like this company.
United Protection Security Group Inc: UZZ-TSXV
Company Contact Info: www.unitedprotection.com
8055 Coronet Road
Edmonton, Alberta
Canada
T6E 4N7
Phone: (780) 465-1708 Fax: (780) 463-6372
MANAGEMENT
Sig Jorstad, Chief Executive Officer (CEO)Original founder and principal of United Protection, a member of the American Society of Industrial Security
Don Allan, Chief Operating Officer (COO) former president of Rentokil-Initial Security which was taken over by Garda World Security for $60 million
Fredy Ramsoondar, Chief Financial Officer (CFO) Vice President of Finance and Administration. Drives United's business expansion through franchising acquisitions and strategic alliances
Fred Fong C.A., former Executive V.P. and CFO of VOXCOM Incorporated (recently acquired for $108 million)
Chris Jorstad - Operations Manager for Raytheon Canada Limited ($25 billion market cap)
Paul Richards - Mr. Richards is the former executive vice-president and chief operating officer of the Brick Warehouse LLP, a billion-dollar-a-year- revenue corporation. Together with the founder, he assisted in developing the chain from one store to over 197 stores over a period of 30-plus years. This included a role in taking the company public as an income trust in 2004.
Share Ownership:
Insiders and Management: 35,000,000 (56%)
Sprott Canadian Equity Fund : 3,234,700 (5.2%)
Sprott Asset Management: 3,765,300 (6.1%)
Shares Outstanding..............................................................................................46,445,600
Fully Diluted Shares Outstanding.....................................................................56 ,970,600
LEADER
Headquartered in Edmonton, AB, United Protection Security Group Inc. is the sole shareholder of United Protection Services Inc The company offers an integrated suite of security solutions, including static security, mobile patrol, alarm response, loss prevention, investigations, video security instillations, and remote video monitoring, having secured sizable shares of the security services market in Alberta, (one of the biggest 24 hour security providers in the Oil Sands) Saskatchewan, and British Columbia. Currently, United Protection Security’s key operating segments include physical security, such as building security in offices, banks, industrial parks, malls, oil projects, investigations services, risk analysis and training, maintaining order during labor conflicts and lockouts, as well as tactical and special services and electric security; and electric security, including advanced access control card systems, close circuit cameras, alarm and distance surveillance products, 24-hour video monitoring, as well as surveillance and protection products.
KEY AREAS OF GROWTH
Over the course of fiscal 2007, United Protection Security Group recorded solid revenue growth of $ 22,000,000 from $ 14,960,000 an increase of $ 7,040,000 or 32 % in sales over the prior year as a result of continued growth in market demand for the company’s products and services. This trend is expected to continue to accelerate into 2008, where revenue is expected to exceed $30,000,000 strictly through organic growth. United's clients include some of Canada's biggest financial institutions, largest oil and gas and new home construction companies. Further, revenues from United Protection Security’s electronic security operations are expected to increase significantly over the longer term, as management also continues to search for further internal and external growth opportunities, both in existing and complementary business lines. During the year significant effort was placed on creating a dynamic structure that will move the business forward. With this accomplished we are now well positioned move into the next phase of our growth strategy.
BEST PERFORMING FUND IN NORTH AMERICA OVER 20 YEARS BECOMES MAJOR HOLDER
As a micro-cap company trading as a penny stock UPSG normally would have a difficult time attracting the attention and interest of financial analysts and institutional investors. Two situations have placed us in a unique position in this regard. The first of these is 911, plus the emergence of the Garda World Security model which has provided benchmarks that financial analysts can use to monitor and evaluate UPSG in terms of growth potential. The second situation involves
Sprott Asset Management Inc. of Toronto, a highly regarded Investment and Mutual Fund organization whose principal, Eric Sprott LL.D., C.A. personally directed the investment by his company a private placement of 5,000,000 common shares in the Company. This attracted the attention and interest of other institutional investors who have become significant players on the open market and has helped to open doors with analysts that now have the Company on their "watch lists".
CONCLUSION
Over the last five years, United Protection Security Group has moved into the ranks of one of the leading regional security companies in Canada. It was also recently named as one of the TOP 50 STOCKS TO WATCH on the TSXV. The recession proof nature of the business and the current operating environment remains favorable for security services providers in Canada . Due to the highly fragmented nature of the industry, overall sustained geopolitical uncertainty internationally, and growing need for private security, there are significant potential growth opportunities for the company. United's biggest executive move to date has been the hiring of Don Allan as COO. Don, a former executive at Rentokil Canada (a recent takeover by Garda World for $60 million), grew the company to $131 million in sales.
This hiring is looked upon as a major coup in the industry, and positions United Protections management team the ability to achieve $300 million in annual sales, at minimal additional cost. As United Protection Security continues to capitalize on opportunities to expand its revenue-generation base while enhancing profitability with a focus on securing a leadership position in the security service industry, a dedicated professional management team and solid current revenue and earnings growth position the company for explosive growth moving forward.
Trading at a price-to-sales ratio of 0.35 through organic growth. With an industry standard of 1.5X sales, United is vastly undervalued compared its main competitor Garda World Security (GW-T) which is trading at 1.5X sales with over 70% of its growth attributed to 15 acquisitions over the years.
At the present price United Protection Security has considerable upside potential. |
