TIDMWSG
RNS Number : 3270O
Westminster Group PLC
29 January 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
Business and Trading Update
and Notice of Results
Westminster Group Plc (AIM: WSG), a leading supplier of managed
services and technology-based security solutions worldwide, is
pleased to provide a trading update for the 12 months to 31
December 2018 and its business activities.
Following a particularly strong H2 performance in 2018 the Group
expects to report a 33% year on year increase in revenues to circa
GBP7.2m, an increase of GBP1.8m on the GBP5.4m reported for 2017.
This increase in revenues is despite excluding $2m (GBP1.6m) of
expected revenues relating to the $4.5m (GBP3.6m) vehicle screening
contract within the Middle East, signed in March 2018, which we
expected to be largely completed by the 31 December 2018, for which
cash has been received from the customer in advance but which
missed shipping deadlines and due to factory shutdowns is now
scheduled for shipment in February 2019.
Despite excluding the $2m (GBP1.6m) of expected revenues and
associated profit for the vehicle screening contract mentioned
above from our 2018 results, an EBITDA positive result for the full
year to 31 December 2018 remains achievable, subject to final
adjustments such as consolidation of the recent Keyguard
acquisition, revision of accounting estimates and the potential
collection of a long-term outstanding debt currently being pursued.
The final position will be clear in the next few weeks with further
updates being provided as appropriate.
Trading for 2019 has started on a strong note and the $2m
(GBP1.6m) for the Middle East contract is now expected to be booked
in Q1 along with a further $224K (GBP176k) of commissioning works.
January passenger numbers for our West Africa airport operations
are at record levels and both our Managed Services and Technology
divisions continue to have a healthy and active enquiry bank and
are delivering on expectations.
The large scale, long term security contract for one of 60
airports in Iran, which was signed in May 2018, but which had to be
put on hold following the US unilateral withdrawal from the Joint
Comprehensive Plan of Action (JCPOA), remains a key focus for the
Company. We continue to work closely with our Iranian client and
are pleased to report that the majority of issues and challenges
created by the US actions have now been addressed. The European
Union is hoping to have its Special Purpose Vehicle (SPV), to
assist with Iranian trade transactions, in place in the early part
of the year. Both parties remain committed to the project and
despite the challenges continue to work towards commencing the
project at the earliest opportunity.
In November 2018 we concluded the acquisition of Keyguard U.K
Ltd ("Keyguard"). Keyguard is a UK based security and risk
management company providing security services to organisations and
critical national infrastructure across the country. It is focused
on infrastructure assets in the Construction, Renewable Energy and
Transport sectors. Services include manned guarding, mobile
patrols, risk management and K9 services. The company has now been
successfully integrated into the Group and is now operating from
our corporate HQ in Oxfordshire. The acquisition has been
immediately earnings enhancing, is expected to bring circa GBP1.5m
pa of additional recurring revenue, and is synergistic to our
business.
We have made good progress with a number of large-scale project
opportunities under discussion and in our Interim Report in
September we announced that we continued to work towards signing at
least one further long-term Managed Services contract during the
year although, as always, there is never certainty as to timing or
outcome in these matters. In this respect we announced in December
that the Chairman, Sir Tony Baldry, and CEO Peter Fowler, had
recently returned from Africa having finalised discussions on one
of our long-term airport security projects. Contracts have been
drafted and, at the request of the client, Westminster have signed,
and we await counter signature from the government. We have also
made material advances with a number of other airport prospects,
which have been in discussion for some time. Whilst there is never
certainty as to timing or outcome in such matter we remain
encouraged by developments and will update on these and all
material developments when appropriate
Cash
At 31 December 2018, the Group had free cash available of circa
GBP0.7m (after taking into account the remaining balance of supply
costs still to be paid by Westminster to the end supplier pending
final delivery of the middle eastern vehicle screening
contract).
Board Changes
In our Annual Report issued in June 2018 we reported on the
progress of our strategic review and the need to have the right
people, processes and systems in place to successfully deliver our
planned growth and as part of that process we have continued to
strengthen our Board and senior management.
On 31 January 2018 Sir Tony Baldry moved from Non-Executive to
Executive Chairman. As a former Parliamentary Under Secretary of
State in the Foreign and Commonwealth Office, with a range of
responsibilities including South Asia, Africa, North America and
the West Indies, a former Governor of the Commonwealth Institute
and a member of the Overseas Development Institute, Sir Tony's
experience and insight into the emerging markets we are working in
is proving to be invaluable.
On 1 June 2018 Patsy Baker joined the Board as a non-executive
director and chair of the Disclosure and Nomination Committees.
Patsy has enormous experience of companies growing their global
business and brings considerable public relations experience to the
Board.
On 1 November 2018 Mark Hughes BSc MBA FCA joined the Board as
CFO. Mark's wide-ranging international experience, particularly in
emerging markets together with his considerable experience in
capital markets and in M&A work as CFO of listed (main market
and AIM) venture capital, private and private equity owned
companies, is a great asset in assisting the Company achieve its
growth potential.
On 17 January 2019 we announced Charles Cattaneo joined the
Board as a non-executive director and chair of the Audit and Risk
Committees. Charles is a Fellow of the Institute of Chartered
Accountants in England and Wales, a Fellow of the Securities and
Investment Institute and has over 30 years' corporate finance
experience gained in investment banking, industry and the
accounting profession. Charles has been a director of a number of
public and private companies and is currently the Chairman of the
West Midlands Regional Advisory Group of the London Stock
Exchange.
Also, on 17 January 2019 we announced James Sutcliffe was
leaving the PLC Board to take on the role as Chairman of the
International Advisory Board, where the benefit of his extensive
international experience and high-level Government contacts
overseas can be of significant value to the Company's business
development and expansion going forward. There are already signs
that this will produce future interesting contracts.
We therefore have a strong board with diverse skills and
expertise.
Outlook
We are pleased with our 2018 results and most encouraged with
the strong start to 2019 both in terms of our operations and in the
progression of our various large-scale opportunities. Delivering on
one or more of these opportunities will represent a major step
forward towards achieving the Group's strategic growth
objectives.
Notice of Results
Westminster will announce its Final Results for the 12 months to
31 December 2018 on Friday 24 May 2019.
For further information please contact:
Westminster Group Plc Media enquiries via Walbrook
PR
Rt. Hon. Sir Tony Baldry - Chairman
Peter Fowler - Chief Executive Officer
Mark Hughes - Chief Financial Officer
S. P. Angel Corporate Finance LLP (NOMAD
& Broker)
Stuart Gledhill 020 3470 0470
Caroline Rowe
Walbrook (Investor Relations)
Tom Cooper 020 7933 8780
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 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.
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contact rns@lseg.com or visit www.rns.com.
END
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