Allen-Vanguard announces restructuring plan to reduce cost base

    - 660 headcount to be reduced by approximately 100
    - Annual savings estimated at $6.5 million
    - Estimated fourth quarter restructuring charge of $4.6 million

    OTTAWA, Sept. 25 /CNW Telbec/ - Allen-Vanguard Corporation (TSX: VRS)
("Allen-Vanguard" or the "Company") of Ottawa, Canada today announced
proposals to reduce annual operating costs by approximately $6.5 million
through consolidation of facilities and other efficiency measures. Under the
announced plan the Company proposes to shed approximately 100 positions, or
about 15% of its global workforce of 660. The Company will record a
restructuring charge including severance and other costs of approximately
$4.6 million in the fourth quarter ending September 30, 2008. All amounts are
in Canadian dollars unless otherwise stated.
    "The decisions announced today are the result of a rigorous planning
process that has been underway for some time," said David E. Luxton, President
and CEO. "The overall objective of our restructuring plan is to rebuild our
base of operating earnings from our diversified, high-quality portfolio of
products and services ... and achieve a rapid and permanent reduction in our
operating cost base. Our operations are readily scaleable and therefore we
expect to be able to maintain and grow revenue from a permanently lower cost
    The Company added that today's announcement deals with the staff
reduction and facilities rationalization component of its leaner operating
plan, and that it will discuss overall plans and the outlook for fiscal 2009
on or before the release of its fourth quarter financial results for fiscal
    The planned staff reductions primarily affect the manufacturing and
administrative functions that support the Company's Personal Protection
Systems business, where business acquisitions have created overlapping
functions and facilities.
    Today, the Company informed employees affected by these plans and
proposals, and said it would be working with affected staff to facilitate as
smooth a transition for them as possible.

    - The Company proposes to relocate the assembly of its bomb disposal
      robots from its facility in Kilbrittain, Ireland, to its facilities in
      Tewkesbury, UK, where it has available capacity. This proposed plan
      would eliminate 43 full-time assembly positions. Proposed efficiency
      gains at the Tewkesbury facility would eliminate a further 18 positions
      in operations and administration.

    - In its North American operations, the Company will consolidate and
      relocate its decontamination technology business from Stoney Creek,
      Ontario, to its operations in the Ottawa, Ontario area, eliminating
      11 positions. A further 30 positions will be eliminated from efficiency
      gains in operations and administration at Ottawa and at Ashburn,
      Virginia, including the elimination of two executive positions - Vice-
      President, Unmanned Systems, and Vice-President, Corporate Development.

    The Company stated that it will be proceeding with its respective
proposals and plans as quickly as possible in accordance with applicable local
employment regulations, and expects to see the full financial benefit of these
decisions by the beginning of the second quarter of fiscal 2009.
Allen-Vanguard's 2009 fiscal year commences October 1, 2008.

    Allen Vanguard

    Forward looking statements

    This press release may contain forward-looking statements, which reflect
Allen-Vanguard's current expectations regarding future events, its strategy,
expected performance and condition. Forward-looking statements include
statements that are predictive in nature, that depend upon or refer to future
events or conditions, or that include words such as "expects," "anticipates,"
"plans," "believes," "estimates" or negative versions thereof and similar
expressions. In addition, any statement that may be made concerning future
performance, strategies or prospects, and possible future acquisitions or
dispositions, is also a forward-looking statement. Forward-looking statements
are based on current expectations and projections about future events and are
inherently subject to, among other things, risks, uncertainties and
assumptions about the Company and economic factors. Forward-looking statements
are not promises or guarantees of future performance, and actual events and
results could differ materially from those expressed or implied in any
forward-looking statements made about the Company. Any number of important
factors could contribute to these digressions, including, but not limited to,
general economic, political and market factors in North America and
internationally, interest and foreign exchange rates, global equity and
capital markets, business competition, technological change, changes in
government regulations, unexpected judicial or regulatory proceedings, and
catastrophic events. We stress that the above-mentioned list of important
factors is not exhaustive. We encourage you to consider these and other
factors carefully before making any investment decision and we urge you to
avoid placing undue reliance on forward-looking statements. Further, you
should be aware that the Company disclaims any obligation to publicly update
or revise any such forward-looking statements whether as a result of new
information, future events or otherwise, prior to the release of the next
Management Discussion and Analysis to be released by the Company or except as
required by law .

    About Allen-Vanguard

    Allen-Vanguard Corporation supports the mission of military and homeland
security forces around the world with leading proprietary solutions for
protection and counter-measures against hazardous devices of all kinds,
whether chemical, biological, radiological or explosive (CBRNE), including
improvised explosive devices (IEDs) and remotely controlled IEDs (RCIEDs).
Allen-Vanguard equipment is in service in more than 120 countries. Products
include Electronic Counter-Measures ("ECM") equipment for jamming remote
detonation of terrorist devices, specialty security equipment for Explosive
Ordnance Disposal ("EOD"), remote intervention robots for hazardous
applications, and personal protective wear for use in dealing with explosive
and bio-chemical agents. Allen-Vanguard is the developer and/or sole,
worldwide licensee of proprietary technologies such as the Med-Eng bomb suit,
the DefenderTM and Vanguard TM Mk2 bomb disposal robots, and the Universal
Containment System and CASCAD Foam system for blast mitigation and
decontamination of bio-chemical warfare agents. Professional services
encompass counter-IED intelligence, training and advisory services, including
the TritonTM Report on terrorist incidents around the world. The Company
operates globally through its wholly-owned subsidiaries under the names
"Allen-Vanguard", "Med-Eng" and "Hazard Management Solutions". Head office
operations are located in Ottawa, Ontario, Canada, with manufacturing
operations in Stoney Creek and Pembroke, Ontario; Ogdensburg, New York;
Tewkesbury, U.K.; and Cork, Ireland; The Company has professional services
operations in Shrivenham, UK, Canada and in the U.S. in Arlington, Virginia,
plus sales offices in Canada, the U.S., the U.K. and Asia. Allen-Vanguard's
shares are listed on The Toronto Stock Exchange (TSX) under the symbol "VRS".
    To find out more about Allen-Vanguard Corporation (TSX: VRS), visit our
website at
    %SEDAR: 00018026E

For further information:

For further information: David Luxton, CEO, (613) 288-5555

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