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 shares advance on major contract win
Shares in Banbury headquartered security firm Westminster Group (LON:WSG) soared 14 percent this morning after it landed a new multi-million contract.
It will supply security equipment, which will be used to protect high-profile sites in the Middle East.
The exact details of the deal were not revealed - due to the inherent confidentiality in the security industry – but Westminster revealed that new order intake now stands at £11.7 million, which is its highest ever level.
It will supply the un-named customer – which it said was a new governmental client - with advanced detection and surveillance equipment. The contract begins immediately and it will be completed by the first quarter of next year.
Xcap Securities analyst Tim Freeborn reckons there’s more to come from the sales pipeline.
Freeborn now believes the AIM-listed security firm should easily make £13 million in sales for the current financial year. The Xcap analyst highlighted that the deal represents a a great move forward."
“Today's announcement is a breakthrough,” Freeborn said in a note to clients.
Freeborn adds: “A key point is that it has been in the offing for several years and is one of those that were expected / hoped to close in 2010.
“We understand the bidding process involved two full trials and an evaluation by an independent consultant. The final run-off involved a big-name UK security firm and a US electronics leader.
“The contract really should be a flagship for Westminster in the discreet world of security.”
Indeed this morning Westminster chief executive Peter Fowler told investors that there is considerable potential for further business.
“I am particularly pleased to be able to announce this new significant contract as it 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.
“This not only provides us with a very encouraging start to the 2011 trading year but is a good illustration of the types of contracts that we have been tendering for over the past twelve months.
“This is yet another important new governmental client to Westminster and we are already discussing various other security solutions the group can provide and for which they have expressed interest. The potential for further business is considerable.
“This demonstrates our ability to secure multi-million pound 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 future business development.”
