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Up 30% and DRC landing next month. It was a $6mill a year rev deal when 50% down mid covid so likely to be north of $12mill on a 60%+ margin. Multibags on this one deal alone and then drop in a couple more, not hard to see where 26p/share comes from.
Its not too late guys. You can still make your money back by buying in now
"Its not too late guys. You can still make your money back by buying in now"
aka "I want to sell mine a little higher"
There are three or four other contracts too.DRC was meant to be a formality and PF put the boots on ground without getting paid rest is as they history.However he must be sitting on 10-20 mous right now.
“To hopefully finalise matters “…….. the word hope is in there for a reason…..
I still don’t understand why such a transformational cuspy is buried in the results…. He must have known weeks ago about this… why no RNS?…..
Passport at the ready…… lol😂😂😂😂
How is it buried? It’s literally in the first line.
DrMaccers.
The results are horrible with pitiful revenue and not much money available and everything else is recovering in the airline industry except WSG. Given they already raised substantially previously on the DRC announcement 3 years ago and have spent it how will they finance things if it does ratify. Classic pump and dumper.
The market cap has been battered down for a long time here by sellers/shorters/ no buyers etc and it being 5m gbp ish now puts such a potential contract sign off in its rightful game changing context imho
I say that even including the understanding that the devil would absolutely be in that contract detail .. eg margins, up front financing requirements etc.. but, generally speaking, the size and duration of such a contract have to be very significant for a now small company like WSG
And equally, why would you wait for the interims to announce you are off to DRC in a months time to sign the biggest deal in over 10 years….and I agree with rifle….. where is the money coming from to set this msc up….. they took less than 48 hours to place after they announced DRC three years ago….Enjoy the rise….B
Will you ever get a dividend?
Serious question. The benefit of long term contracts is to return the free cashflow to holders.
IF they get contract, big if, you can bet the costs will make it just enough attractive for all excess to be absorbed into suddenly inflated [read senior staff] overhead so next year, it will just be EBITDA positive but no net profit. As 3p says, the word transformational is a very over used PF word - for over a decade.
On top of this, there is 100% bound to be a problem. Twitter sold yet?
GL
UKF is the bulk of the finance for this and bank loan for the rest.
The results aren't great but bolt on £10mill a year DRC revs, £6mill profit, onto a breakeven balance sheet and its going to be pretty pretty pretty good
Don't buy it mate. It's not mandatory. Is there the usual risks? Sure. Is the reward an order of magnitude larger? Yep.
Its going to be quite the ride the rest of the year and i'll enjoy the crying here as much as my balances going up that's for sure.
Whereas I share your belief that UKF may provide some help I don't think it will be anywhere near the bulk.
Then as for bank finance, what bank would lend money to a company that never makes a profit and is presently showing a decreasing revenue stream. One that has also raised millions from investors and with very little to show for it.
So despite the cost cutting I just dont see sufficient money to get to one, let alone 5 DRC arrival halls, so best of luck but I won't be investing.
I might look to invest after the DRC contract is fully signed and with full transparency and knowledge of how it will be funded.
Fair
The company expect the majority of funds to be from UKF and judging by the UK gov trade envoy going out for the photo shoot then id not bet against it.
As of our now friendly bank, they are happen to give us a decent overdraft and which a fully completed contract worth £10mill+/year for 10+ years, there will be bank debt available
Dr M,...
Interesting. You made me go back through the RNS's.....to find the original. First thing to note... is that its mentions a minimum 20yr contract..... NOT... a 10yr contract that we have been quoting. And you are quite right... they state circa $6M revenues in first 12months... with scope to increase as volume builds.--- Let's hope those are the numbers.
'This latest multi-million USD per annum managed services contract was secured after many months of negotiation and delays caused by COVID travel restrictions. The contract, which is for an initial period of 20 years, with a 5-year renewal thereafter, is to provide comprehensive ground security operations, initially at 4 international airports and 1 national airport in the DRC. Westminster is to provide its expertise in assisting the authorities to 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'). Whilst air travel remains impacted by COVID, with passenger numbers estimated to be currently around 50% of normal levels and full recovery not expected until 2023, the contract is still expected to generate revenues in excess of $6m in the first twelve months of operation with proportional growth in revenues and margins as passenger numbers recover to normal levels. In addition, there is an opportunity under the contract for further revenues from cargo screening operations."
https://www.lse.co.uk/rns/WSG/min-20-year-5-airport-security-contract-in-africa-ao7eeuae6hkxqle.html
I think the 20 got watered down to 10 when the RVA started getting sticky but on the interims it now states "10+ year contract" whatever that means. Id guess there will be some easily achievable renewable clause.
I suppose, worst case is they are playing for the $6mill a year which is still worth an additional 9p in profits to them