REG - Westminster Group - New Airport MoU & Operational Update <Origin Href="QuoteRef">WSG.L</Origin>

WestminsterAnnouncement

09/12/2015 07:10

RNS Number : 4283I
Westminster Group PLC
09 December 2015
09 December 2015
Westminster Group Plc: 
New Airports MoU & Operational Update
Westminster Group Plc ('Westminster', the 'Group' or the 'Company'), the AIM listed supplier of managed services and technology based security solutions to governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations worldwide, is pleased to announce a new airport security Memorandum of Understanding (MoU) with a government owned airport authority and an update on operations.
New Airport MoU
The Company can today announce that it has entered into another important MoU with a government owned airport authority through its wholly owned subsidiary Westminster Aviation Security Services ('WASS') for the provision of long term (up to 25 years) aviation security services at a significant international airport. The airport is strategically located and is a key hub serving several million passengers per annum and growing. In addition, and in line with Westminster's strategy, the airport is in a region outside of the Group's existing operations offering a further mitigation of risk through a broader spread of operations.
WASS is now preparing to send its team of aviation security specialists to undertake a comprehensive survey of the airport, producing a full gap analysis and project plan as a prelude to contract discussions.
Commenting on the MoU award Peter Fowler, Chief Executive of Westminster Group, said:
"I am particularly delighted to announce this latest development in our roll out of airport security services around the world as not only is the airport strategically located in terms of our planned geographical spread of operations but it is an important hub serving numerous airlines and millions of passengers annually. For this reason the country and this airport hub has long been a target of ours and the signing of this MoU is a major step forward."
Operational Update
Ferry Service - the Board is pleased to report that the works on our flagship ferry vessel, Sierra Queen, are progressing in the shipyard and we are now looking forward to her commencing sea trials shortly. Whilst this process has been frustratingly slow due to the challenges involved in the country, once operations commence the new ferry service offers tremendous expansion opportunities, not only in the country concerned but also in neighbouring countries and I can report that we are already now in discussions with and undertaking feasibility studies regarding extending the services to other countries in the region.
Airport MoU announced on 12 October 2015 - the Company can announce it has made good progress with MoU announced on 12 October 2015 and has now completed its surveys and analysis of the various airports concerned and arrangements are now being made to commence contract discussions.
Ebola - the Ebola outbreak in West Africa, which was a tragedy and crisis for the region and certainly presented us with many challenges, is now largely over, with Sierra Leone being declared Ebola Free in November. Although the social and economic damage to the region's economy resulting from the crisis will take some time to fully recover we are encouraged to see existing air carriers increase flights and new carriers commence operations, which can only be good for the region and we look forward to a healthy return in passenger numbers to and from the country.
Technology Division - the Technology division continues to pursue a number of large scale project opportunities as well as continuing to deliver a range of smaller contracts around the world. Whilst 2015 has been a disappointing year in terms of revenues for the Division, we expect to deliver on a substantial new and existing order pipeline in 2016, including completing the USA Bridge Project which has commenced, and in the broader Americas where we have sizeable opportunities in progress. The $4.4m consultancy contract in the Americas is expected to be recognised before the end of 2016. We continue to receive strong UK Government support through our various overseas diplomatic missions and UKTI and this support is proving invaluable for many of our high level contract discussions.
On prospects for Westminster, Peter Fowler added:
"In our AGM statement on 30 June 2015 we mentioned that the priority prospects within our Managed Services airport pipeline had increased significantly since 2014 and this latest airport MoU announced today, following closely on from the signing of an MoU for several airports announced in October for which we have now completed surveys and are preparing for contract discussions, indicates the momentum being developed. 
"We currently have four separate MoU's in place in different regions of the world through our Managed Services division, three of which have been signed this year. In addition to the two mentioned above, we have one signed on 09 February 2015 for Airports in Asia serving 2 million passengers annually, which is now going through a parliamentary process, and one for East Africa which is still live but taking far longer than anticipated due to local issues and bureaucracy. 
"The Technology division continues to deliver encouraging opportunities whilst additionally providing valuable technology support to the Managed Services operations. 
"Whilst there is of course no certainty as to timing or the final outcome of these or any of the project opportunities in progress we believe the detailed discussions and works we have been undertaking and the current security situation worldwide are providing significant momentum and we will of course update the market on progress in due course."
For further information please contact:
Westminster Group plc.
Tel: 01295 756 300
Peter Fowler (Chief Executive)
Ian Selby (Chief Financial Officer)
S. P. Angel Corporate Finance LLP (NOMAD & Broker)
Tel: 020 3470 0470 
Stuart Gledhill
Walbrook PR (Financial PR)
Tel: 020 7933 8780
Tom Cooper/Paul Vann
0797 122 1972
tom.cooper@walbrookpr.com
Notes:
Westminster Group plc is a leader in the supply of system solutions and products to the security, defence, fire protection and safety markets worldwide.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, 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 manned services, 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. For further information please visit www.wsg-corporate.com

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