(Alliance News) - Westminster Group PLC on Tuesday said it has won a long-term contract to provide security services to five airports in the Democratic Republic of the Congo and expects to make USD6 million in revenue from the deal in the first 12 months.
Westminster Group shares jumped 39% at 5.69 pence each in London on Tuesday morning following the news.
The Oxfordshire, England-based security firm said the contract is for an initial period of 20 years with a five-year renewal thereafter. Westminster will begin by providing ground security services at four international airports and one national airport in the central African country.
"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 security and services firm said.
Westminster Group said it expects to generate USD6 million in revenue in the first 12 months of the contract, with revenues set to increase as passenger numbers recover to pre-Covid levels. Passenger numbers currently are 50% lower than usual, with expectations of recovery around 2023. The company's revenue will be funded by an embarking passenger fee, charged in US dollars to airline tickets and payable directly to Westminster Group. Potential further revenue may be gathered from cargo screening services.
Services to be provided by Westminster Group include the employment and management of airport security teams and technical staff, under improved working conditions. The company will upgrade security infrastructure and maintain related technology. Given the ongoing global pandemic, Westminster also plans to install temperature screening and sanitisation systems through the five airports.
Chief Executive Peter Fowler, said: "The Democratic Republic of the Congo has been one of our target markets for some time and a country we believe 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...The country is extremely rich in natural resources and has the potential for sizeable economic growth. I look forward to Westminster [Group] 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."
By Scarlett Butler; scarlettbutler@alliancenews.com
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Westminster Group (WSG)