Westminster Share Discussion Threads

[youkme] 03/10/2017 13:27

Well we are in Q4 so get ready for the massive placing imo. Nominal value change down to 1p as well? imo Or can they break a 6 year duck and sign something?

[threeputt] 30/9/2017 09:59

yes, definitely a rampers paradise over there right now, amazing how they are ignoring the line accounting for the loan note payment needs in the rns, it seems like a keep the lights on placing ready for a Darwin raise very shortly to me.
Nearly all short term traders over there right now, they won't admit it but thats where they are at - but will they be able to get out before Darwinesque raise ?
Definitely tempting for a trade but carries massive risk while that line on the rns exists

[graham1ty] 28/9/2017 07:24

Chart looks like a classic see saw and they have just chopped through the log

[landmark2] 28/9/2017 05:39

On winning the contract the shares will go to 30/40p, then the funding will be easy to raise at the 20/30p level. This is a no brainer, never has there been a better company to make money on. Ps the last trade of 900K at 11.5 says it all. Smart guy.

[graham1ty] 27/9/2017 14:50

How much working capital will be soaked up in setting up the contract ( though once announced it will be much easier to raise that). I recall it was a couple of million just for Lungi.

As WSG are bust, will there be a performance bond required ? How much ? If I was a major authority, screaming out ( according to WSG) for the service to start yesterday, would I be worried about WSG being unable to deliver the service promised ? I would demand a performance bond, but that could be £10m.

Lastly, seeing the finances of WSG, why would any authority give them a 15-25 yr contract ? Why not 5 years, with a break clause after 2 years, but the possibility of extending it for 10 years.....if, big if, WSG can deliver a world class service.

What will the RNS look like if there is a contract, but for much shorter term, with a probationary period ?

[mr dexy] 27/9/2017 14:37

Getting the airport contract worries me not...

however, how much cash will it take to get it up and running, & how long is the payment cycle?

- even if they get it, and the funds to run it, given the Ferry Fiasco... can they operate it?

- even if they can.. have they done their sums right? will it be profitable?

Interesting to see how it all pans out.

Regards to all.


Mr D

[dave4545] 27/9/2017 14:21

Half the shares from placing have already been flipped. Love or hate this stock there is always a chance to make a quick buck when the placing stock all clears.
Placing could be cleared by Friday or at worst some day next week then the price will rebound at least 10% just a case of patience.

[owenski] 27/9/2017 14:12

I feel sorry for Fowler, if this company goes down the pan, where will his next shilling come from, been such a good earner for him.

[neo26] 27/9/2017 12:05

it was inevitable that they will raise funding, the ferry business has been a disaster, its all down to the ME contract...

They have to bag it now, not for the faint hearted can go anyway....

[alphapig] 27/9/2017 09:42

I'm no Xperia, but would not be surprised 1p to allow continued equity raises going forward.

[john henry] 27/9/2017 09:33

What par value is that alpha pig?

[alphapig] 27/9/2017 09:28

Beaufort pumping the volume, pi's gonna be left in the headlights wondering what happened, new par value looming, imho.

[someuwin] 27/9/2017 07:45

Westminster Group (WSG.L, 11.25p) – Speculative Buy
Westminster Group ('Westminster'), a 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, yesterday announced that it has raised £750,000 through issuance of 7,500,000 new ordinary shares at a price of 10p per share. The proceeds will be used to support the Group's development, with a particular focus on preparation for the anticipated Middle East project opportunity in its Managed Services division. Following Admission of the Placing Shares (expected on 10 October 2017), the Group will have 120,743,420 Ordinary Shares in issue, none of which are held in treasury. Through a separate announcement released on 22 September 2017, Westminster Group provided its interim results for the 6 months ended 30 June 2017 ('H1 FY2017'). During the period, revenue advanced by +44% to £2.9m; comprised of +41% growth each in Managed Services (£1.8m) and Technology (£1.0m) division, with Ferry Operation contributed revenue of £51k (H1 FY2016: nil), against the comparative period (H1 FY2016). Due to negative gross profit from the Ferry operation and the commencement of concession payments to Sierra Leone Aviation Authority, gross margin has declined to 59% (H1 FY2016: 73%). Administrative expenses increased by +71% to £2.9m, driven by the costs of the Ferry operations (£0.4m, H1 FY2016: nil), higher Group and central costs (£1.0m, H1 FY2016: £0.8m), and exceptional items (£0.4m, H1 FY2016: £0.3m). Altogether, this led to an adjusted EBITDA loss of £0.6m (H1 FY2016: profit £0.2m) and reported loss before tax of £1.4m (H1 FY2016: loss £0.8m), leading to loss per share of 1.4p (H1 FY2016: loss 1.2p). The Group has raised £0.6m and £1.0m in February and April, respectively. Cash and cash equivalents at the period end stood at £800k (31 December 2016: £152k), while this fell to £400k at 1 September 2017. On the operational front, the Group said certain Board members, including the Chairman and CEO, have now met with, and reached agreement, with the client and other bodies involved on the key points of the Middle East project, the long term managed services contracts opportunity, and it is now working with them to finalise the commencement programme and scope. Although with complex projects of this nature there can never be certainty as to timing or outcome, the Board said it "look forward" to making a further announcement in the "near future". Westminster's CEO, Peter Fowler, commented "The first six months of the financial year have been defined by our intense focus, efforts and achievements in developing our Managed Services business which has the potential to deliver transformational growth. Our financial results for the period show an improved performance by both the Managed Services and Technology Divisions, both of which achieved healthy revenue growth. The ferry operations in Sierra Leone, which commenced services in January 2017, have failed to meet our expectations".

Our View: Westminster Group's results for the H1 FY2017 made for sobering reading. Despite both Managed Services (63% of revenue) and Technology division (35% of revenue) achieving strong revenue growth during the period, the Group's profit performance was let down by the Ferry Operation which recorded an EBITDA loss of £0.4m (H1 2016: nil). This was below the Board's expectations due to disappointing passenger growth and financial performance amid a background of growing competition. Given such circumstances, together with downgrades on future passenger growth forecasts (therefore the greater loss), the Board has now taken the tough decision to exit its ferry operations (and cancel the lease on its second vessel, the Sierra Duchess). As per this decision, the Group have entered into a formal agreement with Sea Coach Express, the largest ferry operator in Sierra Leone, commencing on Monday 25 September, under which they will take over the Sovereign (SL) operations and responsibility for managing the service and vessels, including the Sierra Princess, and will expand the Sovereign fleet by several more vessels. Westminster Group will be jointly promoting and marketing the enlarged operation and will receive a share of revenues on ticket sales made through its own operations, together with a payment for all passengers travelling to and from its terminals. The Group will continue to operate and manage the terminals in accordance with its 21-year agreement signed with the government in 2014. This move is expected to push the Group back to achieving a positive contribution from ferry ticket sales and passenger royalties from Q4 2017. Going forward, the Managed Services division will become the Group's key focus; clearly, with ever-increasing international threats to airport security there are many business opportunities to target in emerging markets. Growth in passenger numbers continued across all airlines except Air France, which declined due to a reduction in their flight numbers. Looking ahead, launch of a new service by Fly Mid Africa in July 2017, commencement of flights to Nigeria by Air Peace later this month and Turkish Airlines who are looking to begin services in Q4 2017, can be expected to create opportunity for significant passenger growth. The Technology division continues to secure orders for a wide range of products and services delivered to clients all over the world. The Group continues to build its recurring revenue base, which it now stands at c.10% of the maintenance and service sales. Given the Group's monthly cash burn of c.£166k, together with repayment of the convertible loan notes valued at £2.2m (plus annual coupon of 10%) maturing in June 2018, the Board noted in its interim statement that it will need to secure additional funding. Yesterday's oversubscribed placing to raise £750,000 (before expenses) demonstrate continuing support for the Group's prospects by the investors. Such funds will support the anticipated 15-year Middle Eastern airport contract opportunity which has the potential to generate annual revenues in excess of £35m. Considering the Group has now addressed the principal problem within its portfolio of businesses and continue to make encouraging progress elsewhere in its pipeline, together with the potential for long-term recurring revenues, Beaufort reiterate its Speculative Buy rating on Westminster Group.

[neo26] 26/9/2017 15:30

it will touch 10p sometime very soon..

[wynterwilde] 26/9/2017 15:12

Just a cursory glance at the charts for Freetown suggest the SQ drew too much depth to operate there. I posted as much at the time and suggested whoever was responsible should be fired. I'm presuming it was the CEO who still provides his (extended)family with a very nice living.

[graham1ty] 26/9/2017 13:11

Welby walked away from 625,000 options. The only trouble is they had an exercise price of 28.5p. When it spiked to 90p three years ago, he must have been feeling rich. Not now

[graham1ty] 26/9/2017 13:11

Welby walked away from 625,000 options. The only trouble is they had an exercise price of 28.5p. When it spiked to 90p three years ago, he must have been feeling rich. Not now

[2magpies] 26/9/2017 12:22

Saucepan

Well put.

In some businesses 'pipeline' is just another word for 'wish list'.

If I remember correctly the ex-military chap who was on the Board, left around the time of the AGM.

Also the then FD stepped down. Neither of which suggested 'imminent' positive development at the time. And so it has proved to be.

'standing by' seems to be turning into 'standing around'!

And, from the point of view of the a wealthy ME Govt, how does it look if you have to raise money at 10p?? What is it doing to their credibility?

[saucepan] 26/9/2017 11:52

Those with longer memories will recall that it was supposed to be the Longmoor Training Centre in 2012 that was going to make this Company.



That was abandoned as a failure.

Then it was the ferry service in Sierra Leone; also now being abandoned as a failure.

I am not going to get started on the infamous record "pipeline" of prospects.

I think it has been well said today that if a transformational contract was "in the bag", institutions would have been falling over themselves to get in here.

In such circumstances, WSG would have been able to raise £7.5 million at a PREMIUM, not a deeply discounted pittance with a bucket shop.

AIMHO.

[dodge city] 26/9/2017 10:31

Mug punters are being scammed by the promise of big contracts which never happen.

[owenski] 26/9/2017 10:29

Puts this BoD wage machine business in strikingly clear perspective there Graham with your post.

[qs99] 26/9/2017 10:01

Wow Graham that is phenomenal.....how do they get away with it and who keeps shovelling placing money their way?