TIDMWSG
RNS Number : 7154X
Westminster Group PLC
23 February 2017
Westminster Group Plc:
Trading Update
Westminster Group Plc ("Westminster", the "Company" or the
"Group"), the AIM listed supplier of managed services and
technology based security solutions to governments and government
agencies, non-governmental organisations (NGO's) and blue chip
commercial organisations worldwide, is pleased to provide a trading
update on its business activities.
As referenced in the Company's trading statement of 21 December
2016, the Group is expecting to report a much improved financial
performance for the year ending 31 December 2016 with revenue
growth up 22% year on year and expected break even at the adjusted
EBITDA level.
Managed Services Division
The Group's Managed Services division continues to make progress
on a number of fronts. The Company's West African airport
operations are seeing steady growth in embarking passenger numbers
as the recovery from the Ebola crisis continues. In January 2017 (a
seasonally strong month), the airport operation recorded its second
highest number of embarking passengers since the Company commenced
operations there in 2012, showing a 40% increase on January 2016
and following on from a 35% increase year on year in December 2016
(albeit December 2015 and January 2016 were still affected by the
tail end of Ebola). If this growth pattern continues it will
potentially benefit both the Company's airport and ferry
operations.
Westminster's Cargo screening operations in Sierra Leone
commenced in West Africa during 2016, following the cargo
operations and security screening service achieving the coveted RA3
status. The new cargo sheds currently have far greater capacity
than current utilisation and the authorities are looking to build
on this and create a regional hub for cargo services.
Westminster's reputation and expertise in the field of aviation
security continues to grow, evidenced by both the number of new
training and support contracts secured for airports around the
world and our growing pipeline of long term potential airport
projects, which includes some very large opportunities. In
September 2016, the Company provided an update on its various
airport opportunities under previously announced MoU's, all of
which remain live and with certain opportunities having made good
progress in recent weeks.
A key focus of the business in recent months has been developing
its several large scale long term potential project opportunities
within the Middle East, including its previously announced major
airport project for which the Company received a letter of intent
during May 2016 and which is expected to have annual revenues in
excess of GBP35m, together with an ancillary large scale project
for the same client as well as a significant border project in the
same region. Contracts of this size and nature are not only
time-consuming but involve complex negotiations with numerous
commercial and political bodies. With the major airport contract
discussions largely completed, the Company has been actively
preparing the required support structures and infrastructure
necessary to deliver the projects, including organising a complex
supply chain. Whilst there is never certainty in relation to either
the outcome or timing of such negotiations the considerable
progress made to date and the ongoing support received from UK
governmental departments is extremely encouraging.
As part of its growth strategy, and to facilitate some of its
major project opportunities, Westminster has also now established
two new European subsidiaries strategically located in Germany;
Westminster Group GmbH, a 100% subsidiary of Westminster Group Plc,
and Westminster Sicherheit GmbH, which has a 15% minority holding
by strategic investors who will help provide financial and
structural support for some of the major project opportunities.
Ferry Operations
As previously reported, Sovereign Ferries commenced operations
utilising its Sierra Princess vessel in December 2016. Passenger
numbers to date are in line with management expectations following
a planned soft start in December designed to trial services and
timetables. The service is now operating 68 crossings a week to
coincide with flight schedules and at full capacity is capable of
carrying around 9,000 passengers a month. With total airport
passenger numbers passing through the airport increasing, and
currently averaging around 15,000 per month, there is a strong and
captive market for a safe, reliable and professionally run ferry
operation. Sovereign's professional service with well-trained
uniformed staff, air conditioned transit coaches, well equipped
terminals and fast, safe craft is well placed to deliver a much
needed service. Marketing has now begun including street video
screen displays in country and plans are in place for ticketing
sales through airlines, travel agents and hotels using our online
booking system due to go live in the near future. This new service
has been well received by passengers and the Company's aim is to
reach a minimum of 50% capacity during the second half of the year
which will make a healthy contribution to the Group, with
continuing growth as the service expands.
The current service is focussed on the Sierra Princess which is
operationally proving successful and which will be joined by other
vessels as demand and operations dictate. The larger Sierra Queen
will be brought into service in due course for longer distance
regional routes currently being planned.
Technology Division
The Group's Technology division has made a strong start to the
year and continues to make a positive contribution to the Group
with increasing margins. In the trading update in December 2016 the
Company announced it had secured over GBP100,000 of annual
recurring revenue maintenance contracts and further recurring
contracts continue to be secured providing a growing portfolio of
business in high security and sensitive locations such as airports,
ports, governmental sites and correctional facilities.
In addition, Westminster continues to secure contracts for a
wide range of products and services from around the world. In the
first few weeks of 2017 the Group has delivered and commissioned
Westminster's unique Diver Communication and Disruption system to a
Middle East Navy and secured contracts for security equipment and
solutions to countries as widespread as Belgium, Ethiopia, Guyana,
Italy, Nigeria and the UK.
CTAC Litigation Settlement
The Group is pleased to report that the transfer of assets to
satisfy the remaining amounts due to Westminster under the CTAC
Litigation Settlement announced in July 2015 is underway ahead of
the originally expected timescale and therefore expects these funds
to benefit our current financial year.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information, please contact:
Westminster Group plc. Tel: 01295 756 300
Peter Fowler (Chief Executive)
Ian Selby (Chief Financial Officer)
S. P. Angel Corporate Finance LLP (NOMAD & Broker) Tel: 020 3470 0470
Stuart Gledhill/Lindsay Mair
Walbrook PR (Financial PR) Tel: 020 7933 8780
Tom Cooper/Paul Vann 0797 122 1972
tom.cooper@walbrookpr.com
Notes:
Westminster Group plc is a specialist security and services
group operating worldwide via an extensive international network of
agents and offices in over 50 countries.
During 2016 the Group has been active around the world and by
way of example has supplied various products and services to
clients as far afield as the Afghanistan, Aruba, Australia,
Azerbaijan, Bahamas, Bulgaria, Canada, China, Croatia, Dubai,
Egypt, Gambia, Germany, Greece, Hong Kong, India, Indonesia, Iraq,
Italy, Jamaica, Jordan, Kenya, Korea, Kosovo, Malaysia,
Netherlands, Nigeria, Portugal, Qatar, Romania, Rwanda, Saudi
Arabia, Senegal, Singapore, Somalia, South Africa, Tanzania,
Thailand, Tunisia, Turkey, UAE, UK, USA and Vietnam
Westminster's principal activity is the design, supply and
ongoing support of advanced technology security solutions,
encompassing a wide range of surveillance, detection, tracking and
interception technologies and the provision of long term managed
services contracts such as the management and running of complete
security services and solutions in airports, ports and other such
facilities together with the provision of ferry services, manpower,
consultancy and training services. The majority of its customer
base, by value, comprises governments and government agencies,
non-governmental organisations (NGO's) and blue chip commercial
organisations. For further information please visit
www.wsg-corporate.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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