House broker Beaufort Securities reiterated its ‘speculative buy’ rating in the wake of Westminster Group’s pre-Christmas Eve announcement regarding significant progress on finalising the details of a big contract in the Middle East.
All but a few more minor commercial and contractual issues have now been agreed by a number of governmental departments and organisations, Beaufort noted.
The company is now waiting on its client for one final internal approval to undertake this project in phases, with the initial phase expected to be worth roughly €24mln a year to Westminster.
“The company has made … huge progress with respect to its Middle East opportunity. We look forward to the further update this month,” Beaufort said.
Westminster had indicated it expects to provide a further update on the project’s progress later this month.
“Financially, the company said it has plans in place to raise the required funds in Q1 2018 to support investment in this project and other potential new Managed Services contracts. Given positive progress, Beaufort reiterates its Speculative Buy rating on the share,” the broker concluded.
Shares in Westminster were up 13% at 27.17p in late morning trading, and are almost triple the value they were before the announcement on 22 December.