Armor rakes in £53m from Iraq guard

ARMOR Group, the London-listed private security firm chaired by Sir Malcolm Rifkind, has earned nearly $100m (£53.3m) in one year alone from guarding foreigners in Iraq - almost half its total revenue.

In a trading statement today, the company, which floated in the City shortly before Christmas, conceded the Iraq war was the chief reason behind a 93% surge in business in 2004.

Armor employs 1,300 people in the strife-torn country, most of them armed. It is now bracing itself for a radical step-up in insurgent activity ahead of the Iraqi elections taking place on Sunday.

Chief financial officer David Seaton said: 'It goes without saying it will be a difficult period for everyone. Reconstruction workers will be confined to their accommodation camps.'

Armor counts US giants Bechtel and Halliburton among its customers and manages security for the British Embassy in Baghdad. It also operates in Afghanistan and is winning more work around the world.

Seaton reiterated Armor's desire for legislation in the sector, given the boom in demand for security as geopolitical tension increases. While refusing to criticise his rivals, he said: 'We are defensive, not offensive, and when recruiting we make sure people are up to the job.'

Overall revenues will be around $190m for 2004. Underlying profits will be 'equal to, or slightly greater than' $19.5.