Westminster Group PLC (AIM:WSG), a provider of managed services and technology-based security solutions, demonstrated resilience and strategic progress in its managed services segment and international operations in today’s interim earnings release.
The AIM-listed group reported revenues of £2.9 million, a decrease from the previous year, primarily due to delayed orders influenced by the global economic downturn.
Despite these challenges, Westminster managed to achieve a gross margin of 57%, reflecting an improvement from the previous period thanks to strict cost management.
The continuing operating loss was £100,000 compared to a £200,000 profit in the comparable 2022 period.
A notable operational highlight was the near completion of the ratification process for a security services contract with five airports in the Democratic Republic of Congo.
The company also made strides in its guarding business, delivering products and services to 33 countries, and maintained a healthy gross margin.
Chief executive Peter Fowler warned that “we continue to battle against probably one of the worst world economic and political backgrounds in recent times”.
He continued: “I am pleased to report therefore that, despite the global uncertainty and economic challenges, our underlying business continues to perform largely to expectations although revenues fell in this six-month period…largely due to the economic climate delaying some capital-intensive orders."
He added that a cost-cutting programme and careful resource management meant, "we have delivered a near break-even result for [our] ongoing operations".
Shares surged 9% in opening Thursday trades.