How to Make Money – from War

The Guardian reports;

Armor Group International, the security firm that makes most of its profits in Iraq, reported a drop in earnings for the first half of the year because of increased competition for business and the loss of a major training contract in Iraq.

The London-based company reported a 30% rise in sales to $134.4m in the six months to June 30. Armor generated more than half of its revenues from business in Iraq - $70.3m - although its non-Iraq business grew by 57%.

However, pre-tax profits slipped to $3.7m from $4.7m for the same period a year ago. Analysts had expected profits to be only 10% lower than last year's.

Armor is chaired by Sir Malcolm Rifkind, the former Conservative foreign and defence secretary. It is one of the UK's leading providers of private security for reconstruction workers in Iraq.

"The group has achieved strong revenue growth over the first half, and we are encouraged by the significant growth outside Iraq," said Dave Seaton, the chief excecutive officer.

The main hit to sales was from the loss of a $7.8m contract with the United States for training staff at the ministry of justice in Iraq, the company told Reuters. "It was a one-off programme funded by the US," Mr Seaton said. "The Iraqi government does not have the funding for its own training needs."

Armor is diversifying and has new or extended contracts providing security at the World Bank headquarters in Kabul, Afghanistan; clearing land mines in southern Sudan, and doing security work for oil and gas companies.”

I wouldn't be worried so much as Failed States in the world seems to be increasing according to this World Bank report.

Related;

World Bank Lists Failing Nations That Can Breed Global Terrorism;

“The number of weak and poorly governed nations that can provide a breeding ground for global terrorism has grown sharply over the past three years, despite increased Western efforts to improve conditions in such states, according to a new World Bank report.

"Fragile" countries, whose deepening poverty puts them at risk from terrorism, armed conflict and epidemic disease, have jumped to 26 from 17 since the report was last issued in 2003. Five states graduated off the list, but 14 made new appearances, including Nigeria and seven other African countries, Kosovo, Cambodia, East Timor, and the West Bank and Gaza. Twelve states, including Afghanistan, Somalia and Sudan, made both lists.”

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This page contains a single entry by Paul published on September 20, 2006 2:30 PM.

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