RE: Foxy15 Nov 2018 23:45
This was the highlighted section he referred to referred to..
Managed Services
The first six months of the financial year have been defined by our intense focus, efforts and
achievements in developing our Managed Services business, which has the potential to deliver
transformational growth. Not least in this respect was the signing in May of the large scale, long term
contract for one of 60 airports in Iran.
Following the US unilateral withdrawal from the Joint Comprehensive Plan of Action (JCPOA) we had
to put the project temporarily on hold whilst we worked with our Iranian customer and the EU
Authorities in order to address a number of challenges created by the US action. Despite the fact that
none of the proposed equipment or services related to this project are covered by existing or
proposed, new primary or secondary sanctions, the US position has created some uncertainty in the
business world. Westminster does not have any significant US business activities and the US is not a
target market for us and so the US position is not a threat to our business. Unfortunately, some of the
proposed equipment manufactures in the supply chain do have US exposure and so we have had to
address this and in some cases source alternative suppliers.
Equally the restrictions on financing and banking being promoted by the US have created challenges
and we have had to put various measures in place to deal with these which have included changes to
our UK banking arrangements and ensuring we have robust payment and receipt processes in place
that do not involve any funds coming from or going to Iran. The project is a Euro denominated contract
and there will be no USD transactions.
Insurance is another area that has been affected by the US position however I am pleased to report
we are making good progress in this respect.
We have been working closely with our Iranian client on addressing all these issues and are currently
preparing an addendum to the contract covering proposed changes in equipment, order of the rollout
programme and the financial and payment structures. Both parties remain committed to the project
and are eager to exchange board letters to commence the project at the earliest opportunity.