www.wg-plc.com
The Westminster Group is a specialist security group operating worldwide via an extensive international network of agents and offices in over 45 countries. The Group's principal activity is the design, supply and ongoing support of advanced technology Fire, Safety, Security and Defence solutions to governments and government agencies, non governmental organisations and blue chip commercial organisations worldwide. The Group is listed on the AIM market of the London Stock Exchange and its Corporate Headquarters and Demonstration Grounds occupy a 4½ acre site, discreetly located in the heart of the English countryside.
Westminster Group shares soar after winning largest ever contract
Westminster Group (LON:WSG) shares spiked 27 percent with its largest contract win to date, with a multi-million dollar deal to sell mobile surveillance systems to a new government client.
The project is expected to get underway immediately and it should be completed during the first half of 2011.
The stock has been under pressure for some time but crucially it appears to be delivering on the promises made to investors in the wake of December’s profit warning.
The security specialist had previously warned that it expects to make an operating loss of £2 million in 2010, as a result of contract delays.
Speaking with Proactive Investors in December, finance director Nicholas Mearing Smith emphasised that it was merely a timing problem and that, provided they are completed, the delayed contracts could ultimately prove to be business transforming.
This morning Westminster confirmed that this new deal is one of several major contracts that it has been negotiating for some time.
"I am delighted to be able to announce this latest contract award, which is one of several major contracts we have been negotiating for some time, and which we had anticipated securing during the latter half of 2010,” chief executive Peter Fowler said.
"I am particularly pleased to be able to announce this contract so early in 2011 which provides us with a very encouraging start to the new trading year and is an indication of the extensive potential we have been developing over the recent years.”
Investor swiftly reacted to the news with the shares surging 27 percent immediately. This helped the stock recover the ground lost since December.
Westminster’s interests span from fire alarms to flak jackets and site protection. The group’s major customers are governments, who have been re-assessing their spending priorities in recent months, which has in turn has led to delays in winning new business.
However in December Mearing Smith told Proactive Investors that all major deals in the pipeline were with governments in the Middle East - where cash rich states have not had the same budgetary concerns of the western economies.
This morning Westminster said it is unable to give further detail about the contract because of the confidential nature of the business. It did however hint that the contract may be first in a series of contracts with the new customer.
Fowler added: "This is an important new governmental client to Westminster.”
“We are already discussing further security solutions that Westminster can provide, for which they have already expressed interest, and the potential for further business is considerable.
"This demonstrates our ability to secure several million dollar contracts and our ability to provide, in conjunction with our agents, a wide range of security solutions to governments and major corporations around the World.
“The size and scope of this contract will provide a valuable reference point for our agents in our target markets."
