logo-loader

Westminster Group shares surge on upbeat outlook

Published: 16:42 23 Feb 2017 GMT

shutterstock_399770035
Middle East is a key focus for Westminster

Shares in Westminster Group PLC (LON:WSG) soared on Thursday afternoon after the supplier of managed services and technology-based security solutions delivered another upbeat trading statement.

The AIM-listed group added a bit more colour to the bullish update it released back in December and said it expects to report year-on-year revenue growth of 22% for the 12 months to 31 December.

The “much improved financial performance” is also forecast to include a break even at the adjusted EBITDA [underlying earnings] level, Westminster added.

The recovery from the Ebola crisis that knocked performance in the recent past continues, with Westminster’s airport operations seeing “steady growth” in passenger numbers, and the company’s reputation in airport security also continues to rise.

The good performance at the West African airport operations has continued into this year as well, with passenger numbers up 40% year-on-year in January.

Westminster’s technology division has also made a strong start to the year.

Back in the December update the company said it had secured over £100,000 worth of annual recurring revenue maintenance contracts, and it revealed today that further contracts have since been secured.

 

Focus on Middle East

The company said a key focus of the business in recent months has been developing its several large scale long term potential project opportunities within the Middle East, including its potential major airport project which they say is expected to have annual revenues in excess of £35mln mentioning now that contract discussions have been largely completed the Company has been preparing the required support structures and infrastructure necessary to deliver the projects, including organising a complex supply chain.

In the first few weeks of 2017, the group has delivered and commissioned its Diver Communication and Disruption system to a Middle East Navy and has secured contracts for security equipment to countries including Belgium, Ethiopia, Guyana, Italy, Nigeria and the UK.

The ferry services, which had operational challenges during the setup, are now up and running and passenger numbers are in line with management expectations.

Westminster hopes to reach a minimum of 50% capacity during the second half of 2017, which it said will make a “healthy contribution” to the group.

Away from its operations, the group said it was “pleased” to report that the transfer of assets due to Westminster under the CTAC litigation settlement is underway and ahead of schedule.

Shares were up 10%, or 1,25p, to 13.75p on Thursday afternoon.

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