Member Info for DrMaccers

What will the tune change to when they are? Have you thought of a new line of attack yet?

Inflated share price indeed?

DRC will be producing revs soon and at that point there will be £14.3mill of long term yearly recurring revs with tech sales on top.

Breakeven is about £7mill with plenty of tax loses in the bag.

Margins on the recurring services are circa 50%

What would you then value the company at?

So the narrative has changed from it won’t happen to the profits will be skimmed by the DRC gov. We are getting places

I think that’s pretty hard on Amine and who knows who else local they’ve employed.

The DRC SARL company did a presser after the April announcement with 3 native guys heading it. They’ve had a long time to recruit as you know, although I’m sure there’s been turnover as it hadn’t started.

I’m sure the RVA grunt workers will be happier with a regular monthly wage than piecemeal pay but we shall see.

I don’t the any of the current (last) delay is on WSG or something they’ve done wrong. Once it does start it’s all contracted and funds via IATA etc so bypasses most local “issues”

Https://bills.parliament.uk/bills/3765

Protect Duty is currently on the Report state and nearly through the Commons.

Actual bill https://publications.parliament.uk/pa/bills/cbill/59-01/0119/240119.pdf

Good to have a read through and see the entire scope of what is going to need to be delivered.

Undertaking a Portect Duty collaboration that should read.

WSG are currently undertaking a Protect Duty with SCG Together (as seen on LinkedIn)

SCG...

SCG's Emergency Response Solution helps support Mass Communications when an event occurs. This originally grew from our work with Schools who inspired us to dedicate a solution to supporting Lockdowns, Invacuations and Evacuations. Using our Platform we are able to deliver Sound and Visual Alerts with instructions should a serious situation occur. Within Schools this could be a custody issue leading to a parent becoming aggressive, individuals with weapons, potentially ex students who may have personal issues and been radicalised, dogs attacking, gas leaks....the list is extensive and then there's Counter Terrorism to factor in. This solution is delivered through a Phone System (which everyone has), yes it's that simple so you should be utilising it! With Martyn's Law bringing in better protection for the general public this is now being offered to help anyone that needs support with their BCP and Emergency Planning. What's more important than keeping each other safe?

So we are clearly putting together a nice bespoke Protect Duty package with integrated secure communications and alerts.

This will produce lots of UK based revenues which i know this BB cherish

The average WSG salary includes probably a hundred or more working out in SL.

SL in fact is a great example for just how WSG deliver this type of deal. The guy is likely heading up DRC is a heavyweight in African aviation security.

How do you think a delay would go if PF RNSed - the reason for the delay is x not attending a meeting or y not answering an email? In terms of the delay, the the overall contract and as a security company trying to get new security work with governments and high profile companies.

The RVA workers have had poor relations as they didn't get paid on time, under WSG they will be getting paid on time and our funds flow straight from the airlines and IATA

"Fanciful beliefs that a small outfit in Banbury will have greater expertise in meeting ICAO standards" - Perhaps have a look at Amine MEJRI? Our newest aviation security manager and likely heading up DRC.

His bio was ....

'Im currently serving as the Head of Aviation Security Division at the Tunisian Civil Aviation and Airports Authority since September 2016. My responsibilities include overseeing all security-related investment projects in Tunisian airports, providing training and quality control, and managing risks on both airport and national levels. I am also a member of negotiation teams and involved in implementing bilateral and multilateral cooperation projects in the field of security and border management.

As an ICAO-certified Aviation Security instructor with over 17 years of experience, I am a member of the Arab Civil Aviation Organization's Security Experts Team, having served as its chief from 2019 to 2022. Additionally, I am the President of the Security Committee at ACI Africa and the African representative at the World Standing Security Committee at ACI World.

Over the years, I have received comprehensive training in aviation security and have provided dozens of training sessions at national, regional, and international levels. I have also participated in several security-related events as a panelist and speaker."

Certainly sounds like someone who might know about aviation security and ICAO standards.

Since year end the tech sales dept as delivered…

20 CEIA OPENGATE security systems at EHC Red Bull München’s SAP Garden

Delivering $1.7mill in Malawi

Installed an Astrophysics Inc 320kV Cargo scanner in Taiwan

Completed of a security project at V.C. Bird International Airport, Antigua

Deployed of cutting-edge CEIA OPENGATE screening technology at Manchester Central Convention Centre

This is quite the increase and bodes well for overall business.

Remember recurring revs is up to £6.6mill/year not including DRC so underlying business at about £10mill revs making it nicely profitable.

Layer on a high margin DRC stream of £7.7mill+ and the profit flies up due to gearing

Even 40% DRC margins produces £3mill profit which drops straight to bottom line as group costs already met and exceeded by underlying business

For once WSG are in an incredible position for grow and to be valued on actual financial metrics not sentiment

Recurring revenue minus DRC is set to rise by £1.8mill from £4.8mill to £6.6mill with growth and additional of high profile contracts like the 2/10/24 RNS

A 37.5% increase in non DRC recurring revs year over year. Fantastic

Add in DRCs circa £7.7mill to £14.3mill and it’s a 3 fold increase in yearly recurring revenues. Again brilliant

Great work from the company raising funds this Xmas

Even Misty can likely go “ Well behaved dogs on leads welcome”. #inclusive

Some more clout on the Pantheon 2.4p placement.

Our Company Secretary and legal council is Jing Zhou, a solicitor. She is also an executive at Pantheon.

Sound seem improbable that they put in £1mill at 3p and £500k at 2.4p without knowing the exact state of play of DRC and some future deals.

I thought the 2.4p mid price placement was good going but maybe they felt the 10p warrants were so easily hit that they were gouging us.

Whatever way you look at it, they know more about the exact state of play than the morons on here and have backed it to the tune of £1.5-2mill so far.

I can imagine he’d want to add open market at these levels which would be another enormous nod

I'll take a stab at some metrics

DRC live - £15mill revs. Profit £3mill, PE 8, SP around 7p initially

DRC + New MSC. £20mill revs. Profit £5mill PE 8 , SP 12p or so

DRC, New MSC, Malawi. £24mill revs. Profit £6.5mill, PE 8, SP 15p

These include basically no onions tech sales and just the initial start of the MSC which will clearly grow both in terms of passenger numbers and added domestic/cargo etc

After the most recent £500k private placement to Pantheon, on top of the £1mill CLN with £500k spare, WSG have more than enough capital to start all available contracts and continue capex from profits

In terms of running DRC, i would guess our latest LinkedIn "Aviation security manager" title, will be Amine Mejri.

His bio says - which he's not changed post new role at WSG

'Im currently serving as the Head of Aviation Security Division at the Tunisian Civil Aviation and Airports Authority since September 2016. My responsibilities include overseeing all security-related investment projects in Tunisian airports, providing training and quality control, and managing risks on both airport and national levels. I am also a member of negotiation teams and involved in implementing bilateral and multilateral cooperation projects in the field of security and border management.

As an ICAO-certified Aviation Security instructor with over 17 years of experience, I am a member of the Arab Civil Aviation Organization's Security Experts Team, having served as its chief from 2019 to 2022. Additionally, I am the President of the Security Committee at ACI Africa and the African representative at the World Standing Security Committee at ACI World.

Over the years, I have received comprehensive training in aviation security and have provided dozens of training sessions at national, regional, and international levels. I have also participated in several security-related events as a panelist and speaker."

Clearly he is a big figure in African Aviation Security and it is quite the coup to get this guy. He's not left his Tunisian CAA job to do nothing. DRC will be producing revs shortly

After the "near term" RNS (maybe before but its WSG so likely post new year) they have highlighted the hope to sign a further MSC which is the tech contract they are currently delivering in Malawi.

You can google the passenger numbers but it looks to be a decent size and larger than SL again. It'll be limited start up costs as someone is already paying for all the scanners to be put in in the first place.

Any MSCs further out than this are too far away to speculate on but Malawi would be bringing the group recurring revs up towards £25mill form the last financial year of £4.8mill. Quite the jump in 18months or so.

We also know DRC has the provision to add domestic and cargo screening which are massive markets to us. Currently is seems DRC can't screen any of their own cargo which adds to cost enormously.

All in all, forward looking is very good.

This year even without DRC is profitable but with all the added revenue streams coming online, the future is very mush rosey.

Bearing in mind that they have ran SL brilliantly so know the model well.

So we are well into this financial year, tech business has certainly ticked up and the underlying service business is set to increase this year by circa £1.8mill on the pervious 12 (2/3 of the 18month figures)

That would be booked services that are literally happening at £6.6mill

Since the summer they've delivered

20 CEIA OPENGATE security systems at EHC Red Bull München’s SAP Garden

Delivering $1.7mill in Malawi

Installed an Astrophysics Inc 320kV Cargo scanner in Taiwan

Completed of a security project at V.C. Bird International Airport, Antigua

Deployed of cutting-edge CEIA OPENGATE screening technology at Manchester Central Convention Centre

All that tech is worth a bob or two if you google but even £3mill total bring this year minus DRC to £9.6 which is higher than the 18months before and would make us profitable

Any DRC added in this year would clearly increase the revs and profitability enormously but lets think ahead.

I have zero doubt the DRC will be producing revs in this financial year so the focus can be on the next full year.

The company has already stated the booked recurring revs will be at least £14.3mill for next year including DRC, add in an extremely modest 700k tech to round it up to £15mill

They've RNSed the services margin is circa 50% so once costs covered about about £7mill then there is a lot of profit to be booked.

What is a reasonable forward PE in this case, adding in a bit of African haircut to it

The next likely add on is the "near term" MSC. DRC is about the hardest Francophile African country to work in or that we would work in so anywhere else like a Gabon, Niger etc would be easier. If it is bigger than SL then they may be another £4-6mill of revs to be added in with a total of up to £20mill with all that margin going to the bottom line.

I would anticipate new coverage/broker note with the new contract and DRC revs beginning. It won't be pie in the sky numbers but ones that are actually live.

Good of you to mention revenues, worth a look

Certainly they've been falling, tech not performing, however...

£7.2mill over 18months was recurring services so £4.8mill annualised.

They've stated repeatedly that DRC will bump this up to £14.3mill and DRC is $10mil(£7.7mill) so that means the other services rev is also growing by £1.8mill or 37.5%. A large chunk of this will be the 2/10/24 contract with plenty of UK based revs.

The "near term" MSC is unlikely to be as large as DRC but even in-between DRC/SL bumps in the forward year recurring revs to nearly £20mill with whatever tech they do on top. It has its uses despite the poor revs as as you mentioned the $1.7mill tech fit out in Malawi, will turn into an MSC after it and i presume its the second MSC that they hope to secure in 2025.

So next years recurring revs are 200% higher than the year just past and likely to be 300% higher.

It'll be interesting to know if there is a reason it wasn't at 7 or before open. Only once in their history as a interim or final results not been RNSed before open

Looks like its still 6th to me Yrab?

Here's fun, if the results don't come today i'll transfer you 1mill shares, if they do you never post again?