Westminster Group PLC Extension to CLN and Results Update (7613Z)
22 May 2019 - 4:00PM
UK Regulatory
TIDMWSG
RNS Number : 7613Z
Westminster Group PLC
22 May 2019
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
Extension of Convertible Secured Loan Note and Results
Update
Westminster Group Plc (AIM: WSG), a leading supplier of managed
services and technology-based security solutions worldwide is
pleased to announce that it has agreed with noteholders to extend
the maturity date of its Convertible Secured Loan Note ("CLN") to
30 June 2020.
Variation of Convertible Secured Loan Note:
The Company's GBP4m CLN facility, initially issued on 19 June
2013, was further extended on 25 May 2018 with an annual coupon of
12% until 30 June 2019 and thereafter, if not paid down, an annual
coupon of 15% until the final maturity date of 31 December 2019
with a conversion price of 25p per share. The current outstanding
principal stands at GBP2.245m.
Whilst the Company plans to repay the CLN at the earliest
opportunity, the extension until 30 June 2020 announced today gives
the Company the flexibility for a strategic and planned paydown of
the CLN, at a time of its choosing, to avoid adversely affecting
the Group's business activities.
Under the terms of the CLN extension, the conversion price on
any unredeemed or unconverted CLN will be 15p per share until 30
September 2019, 12.5p per share from 1 October 2019 until 31
December 2019, and 10p per share from 1 January 2020 until the new
maturity date of 30 June 2020. The annual coupon payable on any
unredeemed or unconverted CLN amount will be 15% from 1 April 2019
until 30 June 2020. The terms have also been amended so that the
Company may redeem the CLN holding in whole or in part at any time
without restriction or penalty.
All other terms of the CLN remain unchanged. The CLNs are listed
on The International Stock Exchange (TISE), formerly the Channel
Islands Securities Exchange.
Results Update:
The Company will issue its Annual Results for the 12 months to
31 December 2018 on Friday 24 May 2019.
The Annual Results will report that the Group made strong
progress in 2018 with a 24% year on year increase in revenues to
GBP6.7m, an increase of GBP1.3m on the GBP5.4m reported for 2017,
resulting in an expected significantly improved EBITDA loss of
GBP378,000 (2017: loss of GBP1,234,000). These results were
achieved despite the delay in recognising turnover relating to the
Middle East screening project related to shipping delays over the
holiday period which, upon review, has resulted in a higher level
of turnover becoming recognised in Q1 2019 than was originally
expected at the time of the Company's trading update of 29 January
2019 ("Trading Update").
The Company's EBITDA result is still subject to the collection
of an old and sizeable long-term debt, previously written off,
referred to in the Trading Update, which is now potentially
recoverable and being actively pursued. If received before the
results, which is less likely now given the timescale, it would
create a positive 2018 EBITDA, however if it is collected post the
results date it will be recognised in the 2019 results.
Market Abuse Regulation (MAR) Disclosure:
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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
& Joint Broker)
Stuart Gledhill 020 3470 0470
Caroline Rowe
SVS Securities PLC (Joint Broker)
Elliot Hance 020 3700 0100
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCCKDDDABKDFPB
(END) Dow Jones Newswires
May 22, 2019 02:00 ET (06:00 GMT)
Westminster (LSE:WSG)
Historical Stock Chart
From Apr 2024 to May 2024
Westminster (LSE:WSG)
Historical Stock Chart
From May 2023 to May 2024