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Hardware & electrical equipment

Westminster Group eyes inflexion point as revenues jump 63%

Trading for 2020 has started on a positive note, the group added

Westminster Group PLC (LON:WSG) has said 2019 was another record year for revenues, with turnover rising 63% year on year to £10.9mln.

The security group also said it expects to report 'greatly improved' underlying profits compared to 2018, even with set up costs for its port project in Ghana and ventures in Saudi Arabia, Bahrain and Tunisia.

In Ghana, Westminster expects formal contracts at the Port of Tema to be signed next month, though it has been running the container screening and secondary search operations in partnership with Scanport since the port opened on 28 June 2019.

Revenues are shared between Scanport and Westminster based on container traffic volumes passing through the port.

Westminster says its share of revenues during the soft opening and start-up phase of operations in 2019 was several hundred thousand US dollars.

Trading for 2020 has started on a positive note, Westminster added.

Technical Services saw a higher than normal order intake in both December and January for a wide range of security equipment.

In Managed Services, annual recurring revenues from Ghana and guarding and maintenance contracts have led to revenues already exceeding 2018 's total.

“As a business, we are operationally geared in that we have relatively fixed operating costs and as our revenues continue to grow our profitability will grow proportionally faster. In this respect, we believe we are now approaching an inflexion point,” the group added in its statement.

Shares rose 1.4% to 10.9p.

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