Westminster Share Discussion Threads

[someuwin] 09/6/2016 07:20

A lot better than I had feared.

[someuwin] 09/6/2016 07:14

09 June 2016

9 June 2016

Westminster Group Plc:

Final Results for the 12 months to 31 December 2015

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 announce its Final Results for the 12 months ended 31 December 2015.

Key Points:

Operational
-- Three new large scale long term Memorandums of Understanding signed for airport security;
-- Prospect list of potential long term managed services projects significantly enhanced;
-- Maintained full operations and kept all staff safe during Ebola Crisis in West Africa;
-- Ebola crisis waning in H2 and airlines begin to return;

-- Flagship ferry vessel Sierra Queen arrives in country but suffers damage creating delays in ferry commencement;
-- Second vessel, Sierra Princess, a 70 seater vessel secured;
-- Technology Division sales increased by 42%;
-- New Technology Division website underway.

Financial

-- Revenues GBP3.4m (2014: GBP3.5m) with GBP1.7m from Technology Division (2014: GBP1.2m). Decrease in Managed Services revenues reflected worst period of Ebola crisis now over and making a strong recovery;
-- 73% reduction in underlying EBITDA loss to GBP0.44m (2014: GBP1.59m)
-- Non depreciation operating cost reductions of 18% in the year, with a further 13% in 2016;

-- Debt of GBP3.32m (Gross) issued in the year to support capital investment in Ferry project and working capital needs; GBP0.9m converted into equity in the year;
-- Overall Loss GBP1.99m (2014: GBP2.43m);
-- Loss per share reduced by 29% to 3.49p (2014: 4.94p).

Post Period End
-- Three more signed MoU's making seven in total under discussion;

-- Letter of Intent received for long term airport project with potential for over GBP30m annual revenues;

-- Recovery in passenger numbers in West Africa enabling it to produce record financial performance; further cost reductions since January;
-- Group close to EBITDA break-even;
-- GBP0.475m unsecured debt issued and a further GBP0.75m converted into equity;

-- GBP1.3m new equity placed in June 2016 to provide additional working capital and to support growing airport security opportunity;
-- Group in a much stronger financial position than at the start of the year;
-- Full strategic review underway.

Commenting on the results and current trading Peter Fowler, Chief Executive of Westminster Group, said:

"Our 2015 results and achievements reflect not only the continuing challenges we faced, such as the ongoing Ebola crisis, ferry delays, and the oil price collapse, but also the measures we implemented to deal with them and move our business forward.

"Following two years of dealing with and overcoming a range of challenging issues, I believe we are now emerging leaner, stronger, and as a result of the strategic review we are undertaking, better structured to ensure maximum shareholder benefit is achieved from the numerous large scale, long term and high margin Managed Services opportunities we are developing. These Managed Services opportunities are now a key focus of our business and we remain excited about our future growth prospects."

[misty12] 08/6/2016 17:48

Nothing in there to be concerned about imo. Apart from they are asking for a little more money (if needed) and they are clearly leaving a door (probably wise in all honesty) for Darwin
GL for tomorrow

[tommyb81] 08/6/2016 13:30

Here's the AGM and form of proxy

hxxp://www.wsg-corporate.com/wp/wp-content/uploads/2015-AGM-Notice.pdf

[someuwin] 08/6/2016 10:59

That's an awful lot of potential just from the Middle East.

...Then there's the other SIX MoU's for major airport security projects around the world!

[someuwin] 08/6/2016 10:29

Whilst peeps are naturally getting excited at the Middle East airport project moving to draft contract stage (25 years at £35m per year) don't lose sight of the other Middle East Memorandum of Understanding that was announced in Feb this year...

"22 February 2016

New 20 Year Middle East Border Security MoU

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, is pleased to announce that its Technology Division has signed a Memorandum of Understanding ("MoU") relating to a 20 year border security project in the Middle East.

The project will involve the provision of equipment, training and ongoing maintenance of security screening checkpoints for the duration of the contract, being initially 20 years, at an import border crossing within the Middle East. The border crossing is a major and very busy transit point between two countries and due to the volumes of traffic passing through the crossing vehicles can be queued for several days waiting to cross. The purpose of the project is to provide advanced screening, monitoring and detection systems that will significantly speed up the crossing process whilst maintaining a high degree of security. The MOU has been entered into with the authority responsible for border security.

The authorities in the country concerned regard this project as a high priority and have selected Westminster, entering into an exclusive MoU with them, based on Westminster's reputation, experience and capabilities. In accordance with the terms of the MoU Westminster will now be undertaking a gap analysis and feasibility study prior to finalising contract negotiations.

Under the proposed contract and project programme Westminster will establish an office in the country and will provide the specialist equipment and technologies and the ongoing support and maintenance teams necessary to ensure all equipment is regularly serviced and any malfunctions are quickly rectified. The Company will generate its revenues from a security charge on vehicles and containers passing through the crossing with certain minimum revenue guarantees provided by the authorities."


Also, note that the Airport contract being signed could well lead on to others in that country.

"...The airport which is the subject of this latest development is strategic both in terms of location and forecast growth, with potential for further agreements in respect of the country's other international airports."

[misty12] 08/6/2016 08:30

Yep. Sorry mate. Anger is a frustration. Have a good day my friend

[tax dodge] 08/6/2016 08:29

Misty you seem desperate now mate. Your better than this.

[misty12] 08/6/2016 08:15

One last thing. If you had spoken to cwind when I suggested it on the LSE BB then you would have known the ferry was going to be a disaster imo. But everyone there was happy to take the BOD reason for the JV break up. Just saying its good to talk to the "other" party sometimes not just the BOD especially when you need a rather large pinch of salt with everything they say imo

[misty12] 08/6/2016 08:13

someumin; when you vote posts down, what is it you disagree with? or is it just the fact they disagree with your posts? It just looks a little odd almost childish when you vote posts down almost straight away.

[misty12] 08/6/2016 08:06

Has anyone spoken to Giles yet? lol
Maybe a good question for the BOD at the AGM? How sticky is this "new" money?
Have good day

[misty12] 08/6/2016 08:04

Possible. Theres enough mugs out there. Results in a couple of days time though,

[someuwin] 08/6/2016 08:03

15p+ today?

[misty12] 08/6/2016 07:58

some; mate, I've seen it all before with this shower. What happened to the EA imminent contract for instance? Once they couldn't fob everyone off with more garbage they moved on to another. I will be amazed if this isn't the same. Time will tell I guess. Market will not take much more of this though thats for sure. At least the AGM will be a little more comfortable for them lol.

[someuwin] 08/6/2016 07:54

Rather than quibbling about the semantics look at the actual facts.

In March the ME CAA had made enquiries to WSG and an MOU was signed.

By May they had established requirements, agreed to go ahead (Letter of Intent) and had agreed draft terms of the contract (£30m per year)

8th March 2016...

"Westminster's aviation security subsidiary, Westminster Aviation Security Services ('WASS'), has signed a new Memorandum of Understanding ("MoU") with a Middle East Civil Aviation Authority for the provision of long term (up to 25 years) aviation security services at a significant international airport within the country concerned serving several million passengers annually.

In view of the heightened security threat worldwide, together with the strategic importance and forecast growth of the airport in question, the country's Civil Aviation Authority recognised the need to urgently improve airport security and equally recognised WASS's experience and expertise in this field.

Arrangements are now being made for a team of WASS technical experts to meet with the authorities in order to establish technical and operational requirements prior to final contract negotiations."


26th May 2016...

"In March 2016 the Company announced that its aviation security subsidiary, Westminster Aviation Security Services ('WASS'), had signed a new Memorandum of Understanding ("MoU") with a Middle East Civil Aviation Authority for the provision of long term (up to 25 years) aviation security services at a significant international airport. Following the signing of the MoU, the Company undertook and completed a gap analysis review of the airport concerned and subsequently commenced contract negotiations.

The Letter of Intent now received indicates the authority's intention to enter into contract with WASS in due course for the provision of long term airport security services. Under the draft terms of the contract WASS would generate revenues in excess of GBP30m per annum based on the current PAX throughput and the currently anticipated fee per passenger."

[misty12] 08/6/2016 05:58

Interesting that one Financial Site says a LOI is less worthy than a MOU lol.

"A letter of intent is likely to encompass a number of different aspects, and it varies in length according to the level of specificity and the type of transaction. All letters of intent lay out the basics of a deal, including cost, time frame and contingencies. Like a letter of intent, a memorandum of understanding outlines an agreement between two or more parties and is usually produced before a final, formal contract. The primary difference between the two is that a letter of intent is not binding, whereas a memorandum of understanding is considered binding and carries weight in a court of law.

A letter of intent is a document, often used in mergers and acquisitions, that records the preliminary terms of an agreement. Though the letter of intent is nonbinding, it is an important outline of the key terms that the parties involved in the transaction have been agreed upon. Ultimately, the information recorded in the letter of intent forms part of the definitive purchase agreement that legally sets out the transaction.

A letter of intent or memorandum of understanding may serve a number of purposes. Such a document is likely to identify any terms that need to reach resolution before completing the deal. The document also usually addresses the time frames and deadlines for the transaction, the price, and the method of payment. Other aspects that may be included in the letter of intent or memorandum of understanding include warranties of marketable title, a list of total liabilities and total assets, and operating condition of all equipment and machinery at the time of purchase. The letter of intent or memorandum of understanding may outline stipulations for the operation of a business until the date the business is sold. A drop-dead date is an important clause; this is a point in time when the parties agree to discontinue negotiations if they haven't reached an agreement."

hxxp://www.investopedia.com/ask/answers/042715/what-difference-between-letter-intent-and-memorandum-understanding.asp

Well played BOD, very well played

[someuwin] 07/6/2016 20:08

Yes its on the website. And on twitter. But little contracts like this are not big enough for RNS.

[bernieboy] 07/6/2016 19:56

Is that from the website someuwin? I guess it will be announced in an RNS in the morning?

[someuwin] 07/6/2016 18:11

New Contract Award – West Africa

June 7th, 2016 News

Westminster Group Plc announces that its Technology Division subsidiary Westminster International Ltd has secured a contract for the supply of Security Screening Equipment to a secure a facility in a West African country.

Under this contract Westminster is providing a combination of X-Ray Baggage Scanner and Walk Through Metal Detectors for the detection of contraband items such as explosives, narcotics and weapons.

Westminster’s experience, expertise and international presence means that Companies and Governments around the world, such as this, are able to procure specialist security services and equipment from a known and trusted source with confidence.

[someuwin] 07/6/2016 14:23

Will be interesting to see the outcome of the strategic review.

Hopefully we'll see a leaner, more focussed company concentrating on the big opportunities.

"We have recently been working with other strong individuals with backgrounds in government and finance with a view to them joining the board. This is consistent with the strategic review of our business previously announced and we will be reporting on further appointments and changes to the Board in due course."

[threeputt] 07/6/2016 14:03

This was the trading update for the year to dec 2015, they make no reference to pbt losses only revenues, and also that they refer to the ferry project as "an investment", well that "investment" will have cost them a lot against the bottom line last year imo

Don't get me wrong, I do believe this has a chance of eventually turning a profit IF they can convert a contract, get the ferry going, and avoid a debacle similar to the ferry with an airport build, but the results could be grimmer than grim, although I guess the future opportunity is where the share price would focus.
I am torn a) because I tend to focus on bigger mcap aim companies these days b) fear of missing out which I am battling against, I originally sold out around 24 c) at the end of the day they have yet to convert a single contract outside of SL d) the bod seems to find it extremely hard to close a deal/complete a contract, and don't give confidence


"Revenues are expected to be approximately £3.4m. Technology Division sales were higher overall due to larger product sales in the first quarter of the year whilst Managed Services revenues were lower than 2014 due to the full year being impacted by Ebola. Embarking passenger numbers at the West African airport steadily increased during the year (from a low point of c30% of normal volumes) and the airport has shown a positive contribution since February 2015. The loss of revenues in 2015 compared to the pre-Ebola period was in the region of £1.4m for the year. This comparison excludes the organic growth the airport was experiencing pre-Ebola. Cost reductions were made during the year across the Group and non-depreciation ongoing costs have now been reduced by more than 25% since the pre-Ebola period.

The Board continues to review options for further cost reductions. Gross margins have slightly improved compared to last year and operating results are expected to be materially better than 2014.

Ferry Project

The investment in setting up the 21 year Sierra Leone Ferry service contract continued during the year. Following sea trials the vessel is close to being operational. The delays in commencement of services, originally envisaged for July 2015, have cost the Company though significant lost revenues. To provide context, the Company believes that the annual addressable market (before Ebola) to be over $9m, so this has materially impacted the business"

[tommyb81] 07/6/2016 13:04

Trading Update for the Year Ended 31 December 2015



Revenues are expected to be approximately £3.4m. Technology Division sales were higher overall due to larger product sales in the first quarter of the year whilst Managed Services revenues were lower than 2014 due to the full year being impacted by Ebola. Embarking passenger numbers at the West African airport steadily increased during the year (from a low point of c30% of normal volumes) and the airport has shown a positive contribution since February 2015. The loss of revenues in 2015 compared to the pre-Ebola period was in the region of £1.4m for the year. This comparison excludes the organic growth the airport was experiencing pre-Ebola. Cost reductions were made during the year across the Group and non-depreciation ongoing costs have now been reduced by more than 25% since the pre-Ebola period.



The Board continues to review options for further cost reductions. Gross margins have slightly improved compared to last year and operating results are expected to be materially better than 2014.

[someuwin] 07/6/2016 11:42

"We are pleased to have the support of institutional investors and I am delighted that Hargrave Hale have substantially increased their investment in Westminster to support the major growth opportunities we have in our managed services business. Any one of these major opportunities could be transformational for the Group. We are currently undertaking our strategic review and we look to this, combined with the support of new investment, to deliver value against a compelling market backdrop for our services for all shareholders."

[misty12] 07/6/2016 10:54

Ah sorry someuwin, misread it.