Record Q4, annual revenue

Ottawa-based Allen-Vanguard Corp. marks record Q4 revenue, which more than doubles to just over $50 million. Earnings before interest, tax, depreciation and amortization nearly tripled to $8.4 million from $2.9 million a year earlier. However, the bomb-removal systems maker’s bottom line was impacted by costs associated with its $630 million-acquisition of local firm Med-Eng Systems Inc. in September, a purchase which positions Allen-Vanguard as a Allen%20Vanguard.jpgglobal leader in the counter-IED market in terms of both size and technology, according to CEO David Luxton. Annual revenue also reached a new high, soaring 69.2% to $96.2 million. But acquisition costs, including those connected to the $17.8-million friendly takeover of UK-based Hazard Management Solutions Ltd. in June, again made for net losses, which hit $14 million compared to net earnings of $38,000 in fiscal 2007. The company forecasts revenue of about $500 million for fiscal 2008, “provided that US defence budgets and allocations are approved in time to refresh order backlog in the company’s second quarter ending March 31.” Says Mr. Luxton, “Despite some recent abatement in IED attacks in Iraq, forecasts by military and homeland security agencies rank IEDs in various evolving forms as the top hazard now and long into the future, terming them a ‘persistent global threat’. For this reason we continue to feel confident in the sustainable, long-term potential of the counter-IED market.”

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