REG - Westminster Group - 15+ Year, 4 X Airport contract in Gabon

WestminsterAnnouncement

04/03/2025 07:00

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RNS Number : 1744Z  Westminster Group PLC  04 March 2025

 

 

04 March 2025

 

 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE
MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH IS PART OF UK LAW BY VIRTUE
OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION
OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN

 

 

Westminster Group Plc

('Westminster', the 'Group' or the 'Company')

 

New 15+ Year, Multi-Million £ Managed Services Contract Covering 4 Airports
in the Gabonese Republic (Gabon) and Subscription to Raise £1.2 million

 

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and
technology-based security solutions worldwide, is pleased to announce that it
has signed a 15+ year contract for security services to four airports in
Gabon.

 

Contracts were officially signed during the General Assembly of the National
Council for Security and Facilitation of the Civil Aviation of Gabon in
Libreville by representatives of Westminster and the Ministry of Transport, in
the presence of various government officials and dignitaries.

 

The contract, which is for an initial period of 15 years with a 5-year renewal
thereafter, is to provide comprehensive ground security operations at three
international airports and one domestic airport within Gabon.

 

Westminster will provide the investment and expertise required to upgrade
security at the airports. This not only includes the provision of advanced
detection, surveillance, and screening equipment, but also the maintenance,
training and various support services required to ensure Gabon's airport
security is run to the highest international standards. Thereby assisting the
authorities develop and maintain world-class airport security services,
opening up the potential for growth in air traffic by attracting new
international carriers and commercial enterprises to the region.

 

The contract is based on Westminster's managed services model successfully
deployed elsewhere in Africa. Revenues will be driven by embarking passenger
numbers using the airports and funded by a per passenger fee, denominated in
USD, collected through the ticketing system and payable directly to
Westminster by the airlines or a suitable collection agency such as the
International Air Transport Association ('IATA'). Based on current embarking
passenger levels the contract is expected to generate revenues of circa $5.5m
USD in the first 12 months of operation.

 

The contract includes a 90-day transition period to allow for operational
planning and deployment processes to be completed, although Westminster will
immediately deploy its transition team to commence planning, training,
procurement and logistics.

 

Subscription

 

The Company also announces it has agreed to issue Pantheon A Family Office
Limited ('Pantheon') 100,000,000 new ordinary shares of 0.1p each ('Ordinary
Shares') (the 'Subscription Shares') at a price of 1.2p per Subscription Share
(representing a premium to the closing mid-market price of 1.1p per Ordinary
Share on 03 March 2025), to raise £1,200,000 before expenses (the
'Subscription'). 25 million warrants with an exercise price of 2.5p and 25
million warrants with an exercise price of 10p have been conditionally issued
to Pantheon as part of the Subscription, subject to Board and shareholder
approval, and with a three-year exercise period from point of issue. It is
also intended that Pantheon will appoint a representative to the Board in due
course.

 

The Subscription was conditional on the signing of the Gabon Contract and the
net proceeds of the Subscription, being £1,000,000, will be utilised for
working capital purposes for the project. Following the Subscription, Pantheon
will be interested in 125,433,333 Ordinary Shares, representing 27.79% of the
Company's enlarged share capital.

 

Admission and Total Voting Rights

 

Application will be made for the Subscription Shares, which will rank pari
passu with the Company's existing issued Ordinary Shares, to be admitted to
trading on AIM ('Admission') once funds have been received pursuant to the
Subscription.  It is expected that Admission will become effective and that
dealings in the Subscription Shares on AIM will commence at 8:00 a.m. on or
around 12 March 2025.

 

In accordance with the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules ('DTRs'), the Company hereby announces that following
Admission of the Subscription Shares, it will have 451,347,993 Ordinary Shares
in issue, none of which are held in treasury. Therefore, following Admission
the total number of voting rights in the Company will be 451,347,993, which
may be used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of the
Company under the DTRs.

 

Commenting on the Contract Award, Westminster's Chief Executive
Officer, Peter Fowler, said:

 

"Gabon, situated on the Atlantic coast of Central Africa, has one of the
highest per capita incomes in Africa and became a member of the British
Commonwealth in 2022. I look forward to Westminster having a long-term
presence in the country and in playing our part in the successful growth and
security of the country's airports.

 

"I am delighted to be able to announce this latest long-term managed services
security contract in Francophone Africa, which adds four more airports to our
growing portfolio of airport operations. I am equally pleased to note that the
government has ensured all the required processes and approvals have been put
in place ahead of signing.

 

"This latest contract award follows the award for five airports in the
Democratic Republic of Congo which, despite the invasion of the east of the
country which has understandably caused some distraction and delay, continues
to make progress, albeit slower than anticipated. The one airport affected by
the invasion, Goma, will not be included until the security situation on the
ground permits, though this will have no material impact on revenues. We
continue to carefully monitor the situation and will update shareholders on
any material change accordingly.

"I am delighted our strategic investor, Pantheon A Family Office, continues to
show their support and belief in the Company."

For further information please contact:

 

Westminster Group Plc                                                   Media enquiries via Walbrook PR
 Rt. Hon. Sir Tony Baldry - Chairman
 Peter Fowler - Chief Executive Officer
 Mark Hughes - Chief Financial Officer

 Strand Hanson Limited (Financial & Nominated Adviser and Broker)
 James Harris                                                            020 7409 3494

 Ritchie Balmer

 Richard Johnson

 Walbrook (Investor Relations)
 Tom Cooper                                                              020 7933 8780
 Joe Walker
 Nick Rome                                                               Westminster@walbrookpr.com (mailto:Westminster@walbrookpr.com)

 

 

 Notes:

 

Westminster Group plc is a specialist security and services group operating
worldwide via an extensive international network of agents and offices in over
50 countries.

 

Westminster's principal activity is the design, supply and ongoing support of
advanced technology security solutions, encompassing a wide range of
surveillance, detection (including Fever Detection), tracking and interception
technologies and the provision of long-term managed services contracts such as
the management and running of complete security services and solutions in
airports, ports and other such facilities together with the provision of
manpower, consultancy and training services. The majority of its customer
base, by value, comprises governments and government agencies,
non-governmental organisations (NGO's) and blue-chip commercial organisations.

 

The Westminster Group Foundation is part of the Group's Corporate Social
Responsibility activities. www.wg-foundation.org
(http://www.wg-foundation.org)

 

The Foundation's goal is to support the communities in which the Group
operates by working with local partners and other established charities to
provide goods or services for the relief of poverty and the advancement of
education and healthcare particularly in the developing world.

 

The Westminster Group Foundation is a Charitable Incorporated Organisation,
CIO, registered with the Charities Commission number 1158653.

 

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