Westminster Group builds momentum with new contract win

Monday, Jan 10 2011 by
3
Westminster Group builds momentum with new contract win

Westminster Group Plc (LON:WSG), the AIM listed security and safety systems business, has picked up a new contract worth around $645,000 (£415,000) to supply a sophisticated countermeasures system to a national government in the Far East Under the terms of the contract, the company will provide specialised electronic countermeasures equipment compliant with export control requirements. The contract was secured by Westminster’s international division following a selective tender process and will be completed in the first half of 2011.

Last week, Westminster secured its largest single contract to date with a deal worth several million dollars to supply mobile surveillance systems to a national security service. In early trading this morning, shares in the group rose by 15% to 23p.

Peter Fowler, the chief executive of Westminster, said: “I am delighted to be able to announce this latest contract award which is not only significant in terms of revenue but also future business potential. This is yet another new governmental client to Westminster and further contract awards are likely to follow successful implementation. I am particularly pleased to be able to announce this new contract award so soon after our previous contract announcement which means we are now entering the 2011 trading year with our largest ever secured order book and a healthy enquiry flow.

He added: “This is a further validation of our distribution model via a specialist agency network. Our local agents are able to use their local knowledge and connections to successfully target governments and major corporations with Westminster's range of tailor made security solutions.”

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Westminster Group Plc is a United Kingdom-based company. The Company’s principal activity is the design, supply and ongoing support of advanced technology fire, safety, security and defense solutions to government and government agencies, non-government organizations and blue chip commercial organizations worldwide. The Company operates in five divisions: Westminster International Ltd, Longmoor Security Ltd, RMS Integrated Solutions Ltd, CTAC Ltd and International Monitoring Services Ltd. The Company operated through a network of agents located in 46 countries at 31 December 2011. Its subsidiaries include Westminster International Limited, RMS Integrated Solutions Limited, Longmoor Security Limited, CTAC Limited and Westminster Aviation Security Services Limited. In March 2013, the Company disposed two subsidiaries MS Integrated Systems Limited including CTAC (RMS) and International Monitoring Services Limited (IMS). more »

Share Price (AIM)
30p
Change
-1.0  -3.2%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
15.9



  Is Westminster fundamentally strong or weak? Find out More »


3 Comments on this News show/hide all

Elias Jones 13th Nov '12 1 of 3
3

Anyone following Westminster (LON:WSG) ?

I am not invested in WSG, but it has been on the watch list since the above article by Stockopedia News in January 2011.

WSG does seem like a story that could develop over the next few years, but the market does not seem to be showing much interest, which would be an opportunity cost consideration.

It’s currently a loss making operation (which is probably why the interest is not there as it’s just the story investors who would be considering without a barge pole), but this loss figure has reduced from 1.4m to 100k showing that it could be close to turning the corner, however WSG boasts a quote bank of over £300m having recently won an airport contract for $150m and has some blue chip clients.

Interim revenues were at 15m up 250% and the 32m shares in issue gives it a cap of around £8.7m.

Does anyone have any current thoughts on WSG?

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benchud 14th Nov '12 2 of 3

Hi, if you go to the LSE chat pages there are seasoned investors who have got loads of great links to thier current projects and the CEO is in active discussions to replicate the $150mln recurring rev contract signed in Fbe 2012, they also have new strategicinvestors from the Far East on board to access the India,China,Japan market more , also from those 32mln shares the CEO Peter Fowler owns a big chunk as do other BOD and investors
hope that helps

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Elias Jones 11th Dec '13 3 of 3
2

If anyone is interested in the Westminster Group story, I am hoping to upload a new Q&A article soon with Mr Peter Fowler the CEO of WSG.

The Westminster Group is an interesting story with seemingly, going by company announcements huge potential attached. Back in February 2012 WSG announced a 15 year airport security contract with a potential value in excess $150m over the first 8 years of the contract alone. WSG also recently announced that the much talked about East African airport prospect which is under a signed MoU continues to progress through the local statutory contract process.

Earlier this year the Westminster Group declared their quote bank had increased by 123% and stood at £783m.

Definitely a lot of jam tomorrow, but the big question is can they convert their leads into hard contracts and deliver, the jury at this moment would be out.

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