ILUS Finalizes Acquisition and Provides Shareholder Update - Seite 2

During the third quarter, ILUS finalized the strategy and administrative procedures to spin out several of its public safety businesses into Emergency Response Technologies (ERT), which is wholly owned by ILUS. The ERT strategy will be rolled out over the coming months and the subsidiary also intends to complete further acquisitions to add United States based firefighting and ambulance manufacturing as well as a global wildfire equipment range to its portfolio.

In the United States, Georgia Fire and Rescue Supplies (GFR) had a strong third quarter with increasing order quantities and started the fourth quarter with over $1 million in new purchase orders. This is a positive step for the business which has historically turned over $300,000 to $450,000 per month and ILUS expects that GFR will deliver significant growth over its 2022 results. Furthermore, after discussions with a global wildfire equipment and vehicle manufacturer, GFR has obtained distribution rights for their wildfire equipment and vehicles in Georgia, Florida, and Tennessee. These products will soon be loaded onto the GFR website and an upgrade to their website is also underway to incorporate several new changes and additions. In Tennessee, Bull Head Products (BHP) has continued its steady growth. During August, ILUS moved a senior operations manager from its head office in Dubai to be based in Georgia and oversee operations at both GFR and BHP, which are within a 4-hour drive of each other. As a result, the company has seen significant improvements in the operational efficiency at both businesses. BHP is currently seeking larger facilities in the Kodak/Knoxville area of Tennessee in order to increase its production capacity.

In the Middle East, ILUS has incorporated its ERT Middle East division and is currently completing the administrative procedures to consolidate its local public safety businesses into the regional division. The company is also merging the operations of BCD Fire and Al Shola Safety, who both service the fire protection sector. ILUS believes that merging the two businesses which have the same target market will reduce their operating costs by as much as 40 percent and increase their ability to bid for and win larger contracts. ILUS’ regional firefighting equipment and rapid response vehicle manufacturer, FireBug Mechanical, has bid on several contracts with a total value of $19 million and is currently shortlisted in a $3.5 million bid to supply rapid intervention firefighting vehicles to Saudi Arabia’s NEOM region. During the third quarter, ILUS shifted FireBug’s firefighting equipment development and manufacturing to a facility outside Belgrade in Serbia. The company also delivered several orders to distributors in India and the Middle East and is subsequently ramping up its product development, testing and manufacturing capability out of the Serbian facility.