Proactive Investors - Run By Investors For Investors

Westminster Group surges as it closes in on lucrative long-term project in Middle East

Westminster bosses have just returned from the Middle East with almost all of the contract details agreed, while only one more approval is now required
security guard watching CCTV cameras
The project will be carried out in phases, with the initial phase expected to be worth €24mln to Westminster

On the last trading day before Christmas, Westminster Group PLC (LON:WSG) delivered a nice present to shareholders as the security firm moved another step closer to securing a lucrative long-term project in the Middle East.

Back in September, the AIM-quoted company said it had made “significant progress” with the opportunity after successful talks with the client and other administrative bodies.

Since then further “extensive” discussions have taken place to talk over the project in more detail, including the order of the roll-out and the customer’s growing requirements.

Westminster conceded that these talks had taken longer than it had expected but it seems to have been worth it.

Chairman Sir Tony Baldry and chief executive Peter Fowler have recently returned from the country concerned, with all but a few “minor commercial and contractual issues” having now been agreed.

Due to the increasing potential scope of the project and its complexity, Westminster will now undertake the project in phases, with the initial phase expected to be worth around €24mln a year to the company.

Should any further extensions or changes be made, that figure could rise as well.

READ: Westminster Group reeling in potentially transformational deal

All of the necessary approvals from governmental departments have now been received, so all that is left is one final internal approval process which Westminster hopes to update investors on in January.

The group added that plans are in place to raise the required funds to support investment in this project as well as other potential new managed services contracts, details of which will be unveiled “in due course”.

Shares surged 65.3% to 15.5p early on Friday morning.

View full WSG profile View Profile

Westminster Group PLC Timeline

Related Articles

ai graphic
August 26 2018
The company helps commercialise innovations developed in universities around the world. The shares are trading at a 40% discount to the value of its current basket of investments
Biohazard symbol
On 10 December, the group signed a 12-month contract with the agency, part of the US Department of Defense, carrying a value of US$1.99mln
November 16 2018
The e-learning specialist upgraded its long-term goals to run-rate revenues of £200mln and run-rate underlying earnings of at least £55mln by 2021, an increase of around 100%

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use