Making a killing

Saturday, 11th December 2004

Peter Oborne on the privatisation of security in Iraq and the rise of a new, respectable breed of mercenary

Executives from a new type of company are doing the rounds of the institutions in the City this Christmas, softening the market ahead of flotation. They come from ArmorGroup. Some would call ArmorGroup a firm of mercenaries, but the company itself insists that it is a ‘private security company’ which operates with the full knowledge and approval of the Foreign Office and the US state department, in accordance with internationally recognised guidelines.

The business prospectus sets out the important facts. Turnover last year: $98 million. Clients: ‘an established blue chip base’. Employees: at present 7,600 trained personnel in 26 countries worldwide. Profits: booming. They have soared from breakeven in 2002 to $5 million last year, with an incredible $20 million forecast for 2004. Prospects: apparently limitless. Its chairman is Sir Malcolm Rifkind, former foreign secretary and the prospective Tory MP for Kensington and Chelsea, tipped as next Tory leader. Backers hope that ArmorGroup will raise about £20 million on the stock market, valuing the group at about £70 million.

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