News on 07 December 2000

Reliance Security Group has bought a 16.1% stake in Chesterton International for £4.9m, bringing its total holding to 16.7%. This makes Reliance the largest single shareholder in Chesterton. Prior to the purchase the major shareholders were Schroder Investment Management, with 16.13%, followed by Mohammed Jafari-Fini, BG Energy Holdings and Fidelity International, all with around 10%.

Reliance refused to be drawn on the reasons for the purchase beyond saying it was a "strategic investment."

Reliance provides contract security, electronic surveillance, facilities management and business process outsourcing services to a wide range of customers throughout the UK. For the year to April 2000, Reliance reported a pre-tax profit of £8.5m on consolidated turnover of £152.9m.

For the year to June Chesterton reported a pre-tax profit of £5m on consolidated turnover of £14m (see News story).