logo-loader

Westminster Group shares surge as it brings in £1.3mln from institutional investors

Published: 16:52 03 Jun 2016 BST

A load of £50 notes
The firm raised £1.3mln from institutional investors, via a placing and subscription

Shares in Westminster Group PLC (LON:WSG), the global security and services group,  rocketed as it said it raised £1.3mln from institutional investors, via a placing and subscription, to progress its managed services contracts as it also updated on its Sierra Leone ferry project.

The firm is issuing 13mln shares at 10p each, 10mln of which will be placed with  Hargreave Hale, while another institutional investor has subscribed for 3mln shares.

Last month, the group received a letter of intent (LoI) from a Middle East airport authority relating to a long term security contract.

The LoI related to the memorandum of understanding (MoU) signed by Westminster’s aviation subsidiary, Westminster Aviation Security Services (WASS), with a Middle East civil aviation authority back in March of this year, with the potential for generating revenue of over £30mln per year.

It was one of seven MoUs signed this year with the supplier of managed services and technology based security solutions.

Chief financial officer Ian Selby said: "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."

The firm added that in view of this and this fundraising above, the contemplated capital reconstruction announced earlier this month to reduce the nominal value of the shares is no longer considered necessary and will not be pursued.

In a separate statement today, the group said its planned second 70 seater vessel - the Sierra Princess - left port on the back of a delivery vessel on May 6 and is due to arrive in country around June 21.

The other vessel - the Sierra Queen -  meanwhile is still awaiting access to the shipyard slip due to the current occupant taking longer than expected to repair.

The latest indication is the slip will be available around the third week of June.

Shares gained over 44% to 12.25p.

Westminster Group has "delivered a strong recovery"

Westminster Group PLC (AIM:WSG) chief executive Peter Fowler speaks to Thomas Warner from Proactive after releasing final results for calendar year 2022. Fowler says that following a tough pandemic, Westminster Group "delivered a strong recovery" during 2022 and has continued to build on that...

on 2/6/23