REG - Westminster Group - Signing of 10+ year 5 airport DRC contract

WestminsterAnnouncement

11/04/2024 14:15

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RNS Number : 3217K  Westminster Group PLC  11 April 2024

 

 

11 April 2024

 

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Westminster Group Plc

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

 

Completion of Signing of 10+ Year, Multi-Million £ Managed Services Contract
covering 5 Airports in the DRC

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and
technology-based security solutions worldwide, is pleased to announce that the
ratification process for the 10+ year contract, initially signed in June 2021
for security services to five airports in the Democratic Republic of the
Congo ('DRC'), Central Africa, has been completed and contracts signed.

 

Contracts were officially signed today during the UK - DRC Trade and
Investment Mission, at a formal ceremony in Kinshasa by board representatives
of both Westminster and the airport authority, La Regie Des Voies Aeriennes
('RVA'), in the presence of various government officials and dignitaries
including Lord Popat, the UK Prime Minister's Trade Envoy; John Humphrey, His
Majesty's Trade Commissioner for Africa; HE Alyson King OBE, HM Ambassador to
the DRC; and HE Ndolamb Ngokwey, Ambassador of the DRC to the United Kingdom.

 

The contract, which is for an initial period of 10 years, with a five-year
renewal thereafter, is to provide comprehensive ground security operations,
initially at four international airports and one national airport in the DRC.

 

Westminster will provide all 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 DRC's airport
security is run to the highest international standards. This enhancement in
airport security will assist the authorities in DRC in developing and
maintaining 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.

 

As part of the programme, Westminster will also be establishing an aviation
security training academy to provide certified training to international
standards for all aviation security ('AVSEC') staff within the country,
ensuring that DRC's AVSEC staff are amongst the best trained, motivated, and
valued in the entire 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
US$, 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
international embarking passenger levels, the contract is expected to generate
revenues of circa US$10m in the first 12 months of operation. In addition,
there is an opportunity under the contract for further revenues, in due
course, from domestic traffic and cargo screening operations.

 

The contract includes a 90-day transition period to allow for operational
planning and recruitment processes to be completed. Operations and revenues
are therefore expected to formally commence in July 2024, although Westminster
will immediately deploy its transition team to commence planning, recruitment,
training, procurement and logistics.

 

Initial funding for the project will be from Westminster's own resources and
the Company has engaged with specialist corporate advisors to secure required
funding beyond that stage, with several options under consideration focussed
on project-based debt capital.

 

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

 

"I am delighted to be able to announce this important new contract during the
UK - DRC Trade and Investment Mission.

 

"The Democratic Republic of the Congo is a key addition to our international
aviation security services, and we believe the country has exciting growth
potential. With a surface area equivalent to that of Western Europe it is, by
area, the largest country in sub-Saharan Africa, the second largest in all of
Africa, and the 11th-largest in the world. It is also the most-populous
Francophone country in the world. Air travel is therefore an important and a
necessary requirement within this vast country. DRC is extremely rich in
natural resources and has the potential for sizeable economic growth. 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
numerous airports."

 

Commenting on the development, RVA Chairman, Prof. Tryphon Kin-Kiey Mulumba,
said:

 

"The Government of the DRC and the RVA are committed to creating world-class
airport operations within the country, which will create economic benefits for
the country and its citizens.

 

"We have been impressed by the professionalism and expertise shown by
Westminster and we see partnerships like this with leading global
organisations, as a key part of this strategy."

 

Lord Popat, the UK Prime Minister's Trade Envoy to the Democratic Republic of
Congo, who is leading the UK Trade & Investment Mission 10th-11th April in
Kinshasa, added:

 

"Britain is keen to develop and grow bilateral trade and relationships between
the UK and the Democratic Republic of Congo and I am delighted we have been
able to announce an important and long-term contract award between British
based Westminster Group and the Regie des Voies Aeriennes during the UK Trade
& Investment Mission event. It is a clear indication of the business
opportunities that exist between our two nations."

 

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)
 James Harris                                                 020 7409 3494
 Ritchie Balmer

 Richard Johnson

 Zeus Capital Limited (Broker)                                020 3829 5000

 Louisa Waddell

 Simon 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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