Westminster Group PLC (LON:WSG), the supplier of managed services and technology-based security solutions, has told investors it is making “significant progress” on a potentially lucrative airport security contract in the Middle East.
Although nothing is certain until the customer signs on the dotted line, Westminster said several key milestones in the “large and complex deal” either had been, or were close to being, achieved.
The 15 year contract could be worth in excess of £500mln to Westminster, although additional airports and services are being discussed as part of the agreement which could push that value even higher.
The company praised the “highly supportive” British government, adding that it remains in discussions at a ministerial level with regards to the contract.
Westminster raises £1mln
Westminster also revealed this morning it has raised £1mln before expenses through an oversubscribed placing, undertaken by its newly-appointed broker, Beaufort Securities.
The cash injection will be used to support the development of the group, with a particular focus on investment in tis Managed Services division.
As part of the placing, Westminster is issuing 10mln shares at 10p a piece.
Final conversion of convertible loan notes
Elsewhere, Darwin Capital has told Westminster it will convert the final portion of its convertible loan notes.
The notes were issued to Darwin as part of the £1.2mln financing deal announced back in November last year.
Darwin will convert the final £500,000 worth of loan notes at 10p a share – a slight discount to Thursday’s closing price. To satisfy the conversion, Westminster will issue 5mln shares to the lender.