Westminster Group PLC Trading Statement (4190S)

TIDMWSG

RNS Number : 4190S

Westminster Group PLC

21 December 2016

Westminster Group Plc:

Trading Statement

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 for the year ending 31 December 2016.

The Group expects to report an improved financial performance both at the revenue and adjusted EBITDA levels for the current year compared to the year ended 31 December 2015. The cash position has been strengthened by the fundraising announced on 22 November 2016 which provides the Group with funding to support working capital requirements around current business development costs, certain anticipated initial post contract spend on the large Middle East opportunity as well as for general corporate purposes. This fundraising was structured with the aim of limiting potential shareholder dilution.

In September 2016, the Group provided its interim results and an update on its business activities. The momentum shown in H1 has continued and during H2 considerable progress has been made on a number of fronts.

Managed Services sales prospects continue to progress. In September, the Group provided an update on its various airport opportunities under previously announced MoU's, all of which remain live and are being progressed. Foremost amongst these is the major long term, Middle Eastern airport contract opportunity which is expected to have annual revenues in excess of GBP35m. Negotiations and contract preparations are making good progress. The Group has been actively working to prepare the required support structures and infrastructure in order to be able to deliver the project. Dialogue with the UK governmental export departments and the relevant national government continues at a high level.

In recent weeks additional business development initiatives have begun to gain traction and deliver value.

Over the last few months the Company has won a number of UK based maintenance contracts for x-ray screening equipment provided by a major supplier to Westminster. The additional annual recurring sales value is over GBP100,000; this is expected to increase as further contracts are secured. Customers include UK airport service providers and governmental bodies and enquiry levels are increasing. These maintenance contracts bolster Westminster's growing recurring revenue base and are being delivered by the Company's existing team of trained and qualified engineers.

In addition, Westminster has recently secured a number of security and training contracts in airports around the world and Westminster's growing reputation as a subject matter expert in airport security will aid awareness of its managed services airport security operations with potential customers.

Westminster continues to enjoy significant high level governmental support for its various project opportunities around the world and has recently received direct introductions in respect of a number of potential aviation security opportunities in the Middle East.

Sovereign Ferries has commenced initial operations in Sierra Leone. The service has been well received by passengers and the company has been approached by various bodies to provide specific ferry transport services in addition to the scope of ferry services under the initial contract, and we would expect it to contribute positive cash flows during 2017 and beyond. Major capital expenditure on this project is now complete.

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: [phone] 
Peter Fowler (Chief Executive) 
Ian Selby (Chief Financial Officer) 
 
S. P. Angel Corporate Finance LLP (NOMAD & Broker)          Tel: [phone] 
Stuart Gledhill/Lindsay Mair 
 
Walbrook PR (Financial PR)                                  Tel: [phone] 
Tom Cooper/Paul Vann                                             0797 122 1972 
                                                     [e-mail] 
 

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

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December 21, 2016 02:00 ET (07:00 GMT)