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Westminster Group ready to "expand and prosper" after moving into the black

In the first half of 2020, Westminster was operationally cash positive and delivered EBITDA of £893,000 and a profit before tax of £236,000

Westminster Group PLC -

Westminster Group PLC (LON:WSG), the supplier of managed services and technology-based solutions, has revealed that it moved into profit in the first half of 2020.

The group, which was operationally cash positive in the first half of the year, made a profit before tax of £236,000 versus a loss of £787,000 in the first half of last year, on revenues that rose by 24% to £6.96mln from £5.61mln.

Underlying earnings (EBITDA) also turned positive, with EBITDA of £893,000, compared to a loss of £49,000 in the same period of last year.

The coronavirus (COVID-19) pandemic has presented some challenges to the company but also some opportunities – e.g. fever screening at airports – and Westminster saw a significant increase in product sales worldwide, which more than offset reductions in other parts of the business.

READ Westminster conducts trial of fever screening solution at Stockholm airport

The Services division, which includes the airport security services operations, got off to a good start to the year but as a result of the coronavirus pandemic, half-year revenues dipped to £2.2mln from £2.5mln the year before.

The Technology division saw first-half revenues surge 54% to £4.7mln from £3.1mln in the first half of 2019.

Westminster noted that the outlook remains uncertain, largely because of the coronavirus pandemic, but its performance in the first half of 2020 lent weight to its claim that its diversified revenue streams, many of which are recurring, leave it well placed to expand and prosper.

"These results, against a backdrop of the COVID-19 pandemic, are an outstanding achievement due, in part, to our multiple revenue stream business model and is a testament to the dedication and hard work of all our employees, some of whom have been isolated overseas for several months,” Peter Fowler, the chief executive officer of Westminster Group said in the results statement.

"These uncertain times present both challenges and opportunities for Westminster, and over the next few months and years we have an opportunity to build on our current achievements and our year on year growth, with the potential for step changes in revenues from the many prospects we are pursuing,” he added.

Quick facts: Westminster Group PLC

Price: 7 GBX

AIM:WSG
Market: AIM
Market Cap: £11.23 m
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