Westminster Group PLC (AIM:WSG) said the multiple revenue streams provided by its business model are mitigating the effects of the pandemic.
The supplier of managed services and technology-based security solutions said it continues to receive a healthy flow of enquiries for its products and services and is already seeing improved product sales in 2022.
The company released its results for 2021 in which it said its Services Division delivered a robust performance while its Technology Division saw its sales affected by the pandemic, although enquiries are now picking up.
The Services Division increased revenues by 16% to £5.1mln from £4.4mln the year before, despite still being affected by Covid-19 travel and lockdown restrictions.
The Technology Division's revenues reduced to £2.0mln (2020: £5.6m), largely due to a lack of business confidence and uncertainty through the Covid-19 pandemic and a reluctance from many companies to commit to capital expenditure resulting in a number of expected contract awards being delayed.
"The defining aspect of 2021 was, of course, the ongoing global impact of the Covid-19 pandemic, whilst one of the main highlights of the year was the prestigious Queen's Award for Enterprise in recognition of Westminster's outstanding contribution to International Trade, which recognised Westminster's many achievements, particularly given the challenges presented by the global pandemic,” said Peter Fowler, the chief executive officer of Westminster.
"We continued to deliver on business opportunities and, in 2021, we supplied goods and services to 60 countries around the world, including some notable contract wins. We have continued to invest in our worldwide business development programmes in order to deliver on our growth potential, particularly in our long-term major managed services projects.
"I am pleased to report therefore that the outlook for 2022 is looking positive as the worst impact of the global Covid-19 pandemic recedes, travel restrictions are being lifted and business confidence is beginning to return,” Fowler said.
"Building on 2021's recorded revenue we are targeting a number of incremental revenue growth opportunities for 2022 which, if delivered, will be a step-change for the business. Our West Africa airport operations are recovering strongly returning to pre-pandemic levels. Our port security business is growing and we are targeting new opportunities to be delivered in the year. We are seeing recovery and anticipate healthy growth in both our guarding and training businesses. Our enquiries remain buoyant, and we are targeting material growth both in our product sales and larger-scale solutions business.
"In conclusion, therefore, the recovery we are seeing in existing revenue streams and new contracts, together with our business model and the opportunities we have been developing over the years, despite the challenges and setbacks we have experienced from the global Covid-19 pandemic, underpin our confidence for the future growth of our business. Whilst there is still uncertainty in the world, not least with evolving global events, we remain optimistic that we can meet 2022 financial year market expectations,” Fowler concluded.