TIDMWSG
RNS Number : 5880F
Westminster Group PLC
29 July 2016
Westminster Group Plc:
Trading Update
Westminster Group Plc ('Westminster', the 'Group' or the
'Company'), 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, today updates on its
performance in the first half of the year and provides a divisional
update on current operations.
Trading in the 6 months to 30 June 2016
As referenced at the AGM statement, the Group expects to report
a much improved trading performance compared to the first half of
2015 where it lost c.GBP0.9m. The Company now expects (based on
unaudited management accounts) to report a positive EBITDA at the
Interim stage. This has been driven by improved passenger volumes
in its airport operations, improved revenue mix, a more favourable
USD exchange rate and lower Group costs. Revenues in the first half
are expected to be in the region of GBP2m (2015: GBP1.9m).
The Group had cash balances of c.GBP0.7m prior to the receipt of
the final placing monies of GBP0.31m, which were subject to AGM
resolutions, on 30 June 2016. As announced previously, the final
convertible loan note balance due to Darwin Capital of GBP0.472m at
30 June 2016 was converted into equity in July 2016.
Managed Services Division
The Company is pleased to report that its Managed Services
Division continues to build its presence and considerable potential
around the world and, in particular, has made significant progress
with the contract negotiations regarding the long term (15 year+)
Middle East airport project for which the Company received a Letter
of Intent in May 2016. Contract discussions are now largely
complete which has resulted in a substantial increase in both the
scope and value of the contract and is now significantly greater
than the estimated GBP30m pa previously reported. The Company,
together with UK Governmental bodies, is now working with the
potential customer and various other governmental organisations in
order to finalise the last few issues as a matter of urgency.
In addition to the above, the Company continues to develop its
long term managed services opportunities including the six other
Memorandum of Understanding (MoU) signed with various governments
and airport authorities in different regions of the world
previously announced, all of which are still active and three of
which were signed in 2016.
Technology Division
As outlined in the AGM Statement in June, the Technology
Division has made a positive contribution during the first half of
2016 with higher margins and a lower cost base.
The Company has secured orders and delivered a wide range of
products and services around the world and has also made good
progress with the potential 20 year Middle East border security
project announced in February 2016 for the provision of equipment,
training and ongoing maintenance of security screening checkpoints.
The Company successfully carried out trials and demonstrations in
relation to this project in May 2016 and due to the substantial
potential value of this contract and its own specific complexities,
is now discussing funding and deployment options with the
authorities and banks with UKEF support.
Ferry Update
The Company is pleased to report that its flagship vessel, the
Sierra Queen, has now completed the repair works in the local
shipyard and is back in the water undergoing engine and equipment
tests whilst the 2(nd) vessel, the Sierra Princess, a 70 seater
fast ferry, has arrived in country and has completed all safety
checks and is finalising formal in country registration. Both
vessels will be commencing sea trials during August and we look
forward to commencement of this long awaited service.
In view of the Company's growing long term aviation prospect
opportunities, and the momentum with various negotiations underway,
the Company has engaged an experienced marine and risk management
specialist who is now in country assisting with the operations and
deployment of the craft and who will now be providing the
management of the ferry service going forward.
New crew including an experienced Captain and Chief Engineer
have also been recruited and deployed to country ready for
operations.
Strategic Review
The Company has previously announced it is undertaking a wide
ranging strategic review of operations to ensure the business is
well positioned to maximise opportunities going forward and
successfully take the business to the next level. The review, which
is on-going, is looking at Board and management structures as well
as the Company's operations, financing and advisory structure,
particularly in view of the significant growth potential the
Company now faces.
At the AGM on 30 June, the Company announced various Board
changes and further changes will be made in the coming months to
strengthen our management and broaden our range of experience and
expertise.
New Websites
The Group has been undertaking a major upgrade of its various
websites and on-line presence with a view to further improving
enquiries and customer experience. So far in 2016 the Company has
completed and launched two new websites, www.wi-ltd.com and
www.wass-ltd.com, which are both also optimised for tablet and
mobile devices. Further Group websites are under development and
will be launched in coming months.
Outlook
Whilst there is never any certainty as to timing or final
outcome of the various opportunities we are pursuing, we believe
the size, number and geographical spread of the various
opportunities we are developing provide significant potential for
growth. We are encouraged by the momentum of the Managed Services
business, which is now our core focus, which together with the long
awaited commencement of the ferry services, at last in sight, means
we are both positive and excited by our growth prospects in the
months and years ahead.
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
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.
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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