Westminster Group PLC – Final Results

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide is pleased to announce its Final Results for the 12 months ended 31 December 2018.

Highlights

Operational:

• Strong performance by both Managed Services and Technology Divisions
• Significant progress with several large-scale project opportunities
• Supplied numerous clients in around 53 countries across the world
• In March 2018 signed a $4.5million USD contract for advanced vehicle screening solutions within the Middle East.
• In May 2018 signed a 15-year contract, worth c €24million Euro per annum but placed on hold following US withdrawal from JCPOA
• West Africa airport operations performed well, strong H2 passenger growth
• Provided training throughout 2018 to various airports, including several major hubs, across the Middle East, Africa and Asia
• In November 2018 acquired UK security and risk management company, Keyguard U.K Ltd expected to deliver revenues of circa £1.5m per annum
• Recurring revenue from maintenance and service contracts increased by over 59% to £376k per annum (2017: £236k)
• New long-term airport project in Africa progressed to contract stage in December 2018, waiting for completion of client’s internal reorganisation for counter signature
• Board strengthened in terms of skills and experience with the appointment of two new non-executive directors, Lady Patricia Lewis (Patsy Baker) in May 2018 and Charles Cattaneo in January 2019 and with the appointment of Mark Hughes as CFO in November 2018 replacing Martin Boden  

Financial:

• Revenues up by 24% to £6.7m (2017: £5.4m) – despite revenues of £2.2m relating to the Middle East project slipping from Q4 2018 to Q1 2019
• Third consecutive year of growth double digit revenue growth
• EBITDA loss of £0.38m (2017: loss £1.23m)
• Total Equity / Net Assets grew from £0.1m in 2017 to £1.1m in 2018 

Post period End: 

• 2019 commenced on a strong and profitable note with Q1 orders and revenues ahead of budget
• Q1 2019 passenger numbers for our West Africa airport operations were at record levels
• Completed balance of $4.5 million USD Middle East screening contract secured in 2018
• In April 2019 announced a $3.4 million USD contract for the provision of advanced container screening solutions to two separate ports in Asia
• In May 2019 completed acquisition of Euro Ops providing the Group with a French base and better access to Francophone countries

Commenting on the Results and prospects, Peter Fowler, Chief Executive of Westminster, said:

“We have seen steady year on year revenue growth over the past few years and we expect this to continue. Based on our current order book, the improvement in our airport passenger numbers and our run rate business, including Keyguard and Euro Ops, we expect 2019 revenues to be significantly ahead of 2018 even without any further new major contract awards, which of course would materially improve the results.  

“Over the next few months and years we have an opportunity to achieve unprecedented growth from the prospects we are pursuing, and the Board and I remain committed to delivering on this potential.”