(Alliance News) - Westminster Group PLC on Thursday reported a sharp rise in revenue for 2019 as it expressed confidence in its future trading performance amid the Covid-19 outbreak.
Shares in the security services provider were trading 17% lower at 9.51 pence each on Thursday morning in London.
For 2019, Westminster posted revenue of GBP10.9 million, up 63% from GBP6.7 million recorded in 2018. Pretax loss was GBP1.5 million, marginally widened from GBP1.4 million.
Administrative expenses rose to GBP5.3 million from GBP4.7 million, while finance costs also increased to GBP620,000 from GBP333,000.
By division, Managed Services contributed revenue of GB5.5 million, up 49% from 2018, while the Technology Divisions contributed GBP5.4 million, up 80% from GBP3.0 million.
Recurring revenue from managed services, guarding and maintenance contracts accounted for GBP5.6 million of the total revenue amount.
"I am delighted to report that 2019 was a record year for the group, our fourth year of double-digit percentage revenue growth and shows the momentum we are building. 2020 has started on an equally positive note, building on the success of 2019 with both order intake and revenues ahead of budget. The first quarter delivered revenues of over GBP4.5 million, an increase of more than 22% over the same period in 2019," said Chief Executive Peter Fowler.
Looking ahead, Westminster Group said that while the Covid-19 pandemic has resulted in disruptions to its business - which includes providing security in airports - it began the year with visibility over GBP8 million of annual recurring revenue, and therefore expects affected revenue streams to recover quickly once the pandemic passes. It added that it expects growing demand for more-permanent fever screening systems at major facilities and commercial sites, as well as an increase in its distribution of personal protection and safety equipment.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Westminster Group (WSG)