TIDMWSG

RNS Number : 8672B

Westminster Group PLC

15 June 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

Westminster Group Plc

('Westminster', the 'Group' or the 'Company')

New Minimum 20 Year Multi-Million USD Managed Services Contract covering

5 Airports in the Democratic Republic of the Congo

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide, is pleased to announce that its Services Division has been awarded a long-term managed services contract to provide security services to 5 airports in the Democratic Republic of the Congo ('DRC'), Central Africa .

The contract was officially signed in Kinshasa by board representatives of Westminster and the airport authority, La Regie Des Voies Aeriennes (RVA) and witnessed by the British Ambassador, Ms Emily Maltman. The signed contract will now undergo formal ratification in accordance with DRC government procurement requirements before meaningful activities commence.

This latest multi-million USD per annum managed services contract was secured after many months of negotiation and delays caused by COVID travel restrictions. The contract, which is for an initial period of 20 years, with a 5-year renewal thereafter, is to provide comprehensive ground security operations, initially at 4 international airports and 1 national airport in the DRC. Westminster is to provide its expertise in assisting the authorities to develop and maintain world-class airport security services, opening up the potential for growth in air traffic by attracting new international carriers and commercial enterprises to the region.

The contract is based on Westminster's managed services model successfully deployed elsewhere in Africa. Revenues will be driven by embarking passenger numbers using the airports and funded by a per passenger fee denominated in USD, collected through the ticketing system and payable directly to Westminster by the airlines or a suitable collection agency such as the International Air Transport Association ('IATA'). Whilst air travel remains impacted by COVID, with passenger numbers estimated to be currently around 50% of normal levels and full recovery not expected until 2023, the contract is still expected to generate revenues in excess of $6m in the first twelve months of operation with proportional growth in revenues and margins as passenger numbers recover to normal levels. In addition, there is an opportunity under the contract for further revenues from cargo screening operations.

Under the contract, Westminster will assume the employment and management of the airports' aviation security teams and technical staff and fund the upgrade of the security infrastructure, installing new security equipment and fencing, including a wide range of detection and surveillance technologies which will be maintained and updated throughout the life of the contract. Westminster will also assist the airports to become more Covid resilient by installing temperature screening and sanitisations systems. In addition to improving the employment conditions of existing security staff at the airport, Westminster will also provide a small team of experienced aviation security specialists to assist the airport operator meet and maintain the highest levels of security by providing the required training, mentoring, skills transfer and compliance support services.

The contract includes a 90-day transition period to allow for operational planning and recruitment processes to be completed. Operations are therefore expected to formally commence in September 2021, although Westminster will deploy its transition team once the DRC government ratification process has been completed in order to commence planning, recruitment, training and logistics. The required investment in the project by Westminster will be spread over a number of years as systems and equipment are deployed and upgraded.

The Company will continue to monitor its ongoing funding requirements and most appropriate sources of such funding, as this contract develops, alongside other potential contracts being pursued globally to ensure the Group has adequate financing in place to deal with the targeted expansion of services.

Commenting on the contract award Westminster's Chief Executive Officer, Peter Fowler, said:

"We stated in our 2020 annual report, issued in May 2021, that delivering at least one more large-scale managed services contract this year, despite COVID challenges, was one of our priority goals. I am therefore delighted that our Services Division has secured this important new long-term managed services contract in the DRC, one of several such opportunities being pursued around the world, which further expands our airport security projects and international presence.

"I am also delighted that as a direct result of our strategic acquisition of our French business, Euro Ops, in 2019 that we are now developing opportunities, such as this, in Francophone Africa.

"The Democratic Republic of the Congo has been one of our target markets for some time and a country we believe has exciting growth potential. With a surface area equivalent to that of Western Europe it is, by area, the largest country in sub-Saharan Africa, the second largest in all of Africa, and the 11th-largest in the world. It is also the most-populous Francophone country in the world. Air travel is therefore an important and a necessary requirement within this vast country. The country is extremely rich in natural resources and has the potential for sizeable economic growth. I look forward to Westminster having a long-term presence in the country and in playing our part in the successful growth and security of the country's numerous airports."

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 
 
Strand Hanson Limited (Financial & Nominated 
 Adviser) 
James Harris                                   020 7409 3494 
Ritchie Balmer 
 
 Arden Partners plc (Broker) 
 Richard Johnson (Corporate) 
 Tim Dainton/Simon Johnson (Broking)             020 7614 5900 
 
Walbrook (Investor Relations) 
Tom Cooper                                     020 7933 8780 
Paul Vann 
Nick Rome                                      Westminster@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 (including Fever 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.

The Westminster Group Foundation is part of the Group's Corporate Social Responsibility activities. www.wg-foundation.org

The Foundation's goal is to support the communities in which the Group operates by working with local partners and other established charities to provide goods or services for the relief of poverty and the advancement of education and healthcare particularly in the developing world.

The Westminster Group Foundation is a Charitable Incorporated Organisation, CIO, registered with the Charities Commission number 1158653.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

CNTDBGDLRGBDGBS

(END) Dow Jones Newswires

June 15, 2021 02:00 ET (06:00 GMT)

Westminster (LSE:WSG)
Historical Stock Chart
From Apr 2022 to May 2022 Click Here for more Westminster Charts.
Westminster (LSE:WSG)
Historical Stock Chart
From May 2021 to May 2022 Click Here for more Westminster Charts.