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Yes, completely agree H&N.
It will be great to see H2 income include:
1. Lungi numbers recovering
2.Tema numbers for expanding no of births and TEUs as is evidenced recently
3. Huge tech sales of covid and non covid gear
4. Keyguard contract making a significant contribution
5. Vending business turns out to be a winner
6. Resulting in a big profit and a much higher SP
Some of these coming off during the second half of the year as well:
1. Menzies appoint us for all their locations:) Wow
2. Africa MSC is completed and/or the other MSC referred to in last RNS
3. The first of hopefully many Saudi Port MSCs.
....and ever the optimist,the resurrection of the Iran deal when Biden gets rid of Trump
AIMO but this looks great with low risk reward from here given that we are already in profit.
MPS TERMINAL 3 BREAKS THE ALL-TIME PRODUCTIVITY RECORD ON MSC LIVORNO
On 15th August 2020, Meridian Port Services (MPS) reached a new level of container handling productivity on vessels by exceeding the previous record of 112 moves/hour which was achieved on MSC ALTAIR that berthed at Terminal 3 on 15th May 2020.
THE NEW VESSEL PRODUCTIVITY RECORD OF 139.91 MOVES/HOUR ON MSC LIVORNO is from first lift to last lift and operationally recognised as 145.86 moves/hour after adjusting the permissible deductible times. This has so far been logged as the ALL-TIME RECORD for Tema Port and may certainly be by far the best on the West African Coastline.
MSC LIVORNO is flying the German Flag and among a fleet of Ultra Large Container Vessels (ULCV) deployed on the MSC’s Africa Express (AFEX) weekly service into Ghana. Her capacity is 14,000 TEUs and Gross Tonnage of 153,115. Her length overall (LOA) is 366 meters and she is 51 meters wide.
The CEO of MPS, Mr. Mohamed Samara remarked, “It has been identified by trade experts that one of the key factors for the realization of the vision of the Africa Continental Free Trade Area
(AfCFTA), is the development of significant trade and transport infrastructure. MPS Terminal 3 is first amongst these infrastructures; our progressive service efficiency to shippers and consignees as well as superb vessels’ productivity levels has resulted in direct vessels’ calls with deep drafted vessels (avoiding hubs) hence shorter transit times.”
With MPS Terminal 3 positioning itself as an effective transhipment hub providing connectivity between the seaports of Africa and the hinterland markets, Ghana through this will be in the lead for Africa in reducing to the barest minimum existing intra-continental trade barriers. This will boost economic development and fit the continent to harness all the diversified economic benefits inherent in the AfCFTA.
He described the recent record-breaking accomplishments as a stellar performance by the operations team. “We are proud to achieve this milestone with no incidents or accidents, respecting all safety protocols and for creating a worthy safety culture that safeguards all workers and company assets. On behalf of the Shareholders, Board and Management of MPS, I would like to take the opportunity to congratulate the entire MPS team, especially the Operations Management, Supervisors, Planners, Equipment & Crane Operators, Truck Drivers and all the support team that worked on the vessel.” Said Mr. Samara.
I took the opportunity to also ask Mark Hughes for an update on all the significant opportunities that we are aware of and asked if these are still all active. These included, Africa contract, Saudi Ports, etc etc and even Iran given the possibility of Biden winning and in turn the return to the JCPOA.
A bit cheeky to ask and obviously he can't give me anything price sensitive. But I think the response was more forthcoming than we normally get from the suits. He gave me permission to share this part:
''It is fair to surmise that as we have not issued RNS to change any of the items you have mentioned below, then we consider them to be ongoing.''
Good to hear this and have a CFO that tries to comment rather than just batting away. That tells me that they do care for us PI's.
Ok, the answer is in the Report and Accounts page 73 :
Revenue in respect of supply of product is recognised
at a point in time when products are delivered, and
legal title is transferred to the customer.
https://twitter.com/wg_plc/status/1296053656182296576/photo/1
Our stylish yet functional mist hand sanitising system blends in seamlessly with all environments. The unique design allows for brand personalisation and the ability to choose from 3 discrete colours...
...Here, you can see one of our stations in a Miller and Carter Steakhouse
Just a quick question about when people think the income we get from sales would be booked, So much has been said about our Covid contract wins and I am sure that the vast majority have not been announced due to the smaller size....in total they are however significant.
In terms of what would be shown in the H1 numbers, would these be the income actually received or would we have booked all sales agreed, supplied and invoiced? If the latter then our cash position is even better than stated in the last update.
Yes, agree completely that we are in the best position in our history.
I would add the Keyguard contract. We don't know much yet about the income potential but based on the comprehensive guarding services stated that we are providing but it should be significant. Another excellent win for the WSG team.
Providing the security for a multi stage building site of 3,500 houses doesn't come cheap and will last for a few years.
As Boris's build build build strategy starts to get implemented, this is another showcase for WSG/Keyguard to grow substantially. I'm sure there will also be some covid related Tech sales into this market in the short term as well.
HB
Panza, a really good summary of where we are and the hopes that I have for H2.
A good additional point is that perhaps many of the smaller contracts and indeed the larger ones (e.g. Blackrock) may well be paid in H2 rather than H1. They also have 400k of additional stock which has to bode well given the streched supply chains for this Covid equipment.
Thanks H&N for the update on the US contract. More good news that lots is still going on in the tech section.
WSG have put so much effort into developing this training business and I agree this is good for our credibility, showcasing our expertise and to generate up sell opportunities.
If this can become a significant revenue stream as well then that's a true a win win. Doesn't look like the capex is much either and so I'm happy they've jumped on this opportunity as another potentially significant revenue stream and string to our bow.
Keep at it Mrs Fowler.
HB
So, the biggest takeaway from the update for me was that we now have visability on the Tema income.
'' in H1 2020 the project has generated over $1 million USD for Westminster. A third berth has recently opened, and the fourth berth is due to open later this year, expanding the TEU (Twenty Foot Equivalent) container throughput capacity from around 1 million to around 3.5 million per annum when completed. ''
A couple of my conclusions are:
1. Looks like we're getting £2 to £3 a TEU. We discussed at length the possible income from this transformational contract at the 2019 AGM and this is precisely that. £1m in first 6 months and two births being added this year. We can reasonably expect a big increase in TEU's in the near term as companies don't invest £1.5Billion without a plan to use the capacity. If we get to the 3.5 million TEU's then we are looking at trebling our recurring revenue in one contract.
2. 40% margin. We talked about much higher figures for Tema but we had no idea exactly what service we were providing. Now we know we are not employing the people on the ground and so the 40% margin on the figures we have been given is excellent and IMO vastly reduces the risks associated with WSG.
3. Tema is an amazing opportunity for WSG to demonstrate it's services to the world and especially to the Saudis
Finally, profitable and in the middle of a pandemic:)
This is all down to PF and his team. If they're reading this, well done and keep up the good work.
AIMO
Humanbait
Just so many opportunities close to us :
Developments at Kumasi International Airport in Ghana includes a new passenger terminal with a 1,000,000 pax/year capacity, the supply of baggage handling systems & security equipment.
Thanks Manx....now I remember where I heard we were mentioned with Smiths.
That has to be good for us if they are using Smiths for the equipment for the Saudi ports as we will be aware of how to work with their kit and our service is proven in this regards at Tema.
''Increased throughput rates & system strength are chief considerations of container scanning at ports. The Smiths Detection HCVPZ60 is a drive-through portal for the inspection of trucks & containers with a throughput of up to 100 trucks per hour. ''
Correct me if I am wrong but we use/sell the Smith kit.
Another tweet:
Container screening and security contracts currently being discussed with sub contractors, exciting times for Saudi investments in ports and transport.
The more I read about Salman Investors, the more they appear to be major players....more research needed and so anyone know more about them?