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Jimzi..... I don't know if you have watched the interview--- but item 3 was addressed by PF.
We know that the margins are good on the airport MSC's.. and he was at pains to stress that negotiating the fee during the 'covid' period, has allowed them to ensure that they operate profitably even with these reduced pax...--- given the costs for scanning equipment, etc., are largely fixed,... the increase in volume,.. which could be as much as 100% means the growth in sales revenue over the next couple of years will pretty much go straight to the bottom line. ... and he is clearly optimistic that these 5 airports will lead to more ....
.... is just 5 airports of 54 existing in country airports!
The 11th Largest country in the world,... twice the size by area of Western Europe.... where air travel is an absolute necessity to get anywhere fast.
The scope for winning more airports, just within DRC is HUGE.
Aiming,... nope,... I'm very happy with this weeks news. But in the past he had had a habit of keeping something back for the day,... who knows. There are many, many opportunities that they have been chasing.
Sadly I can make it the year, which is very annoying, but hopefully Gibbo and Hereandnow will be attending and can feed us any juicy bits that they can glean over the dodgy sandwiches.
Why is the resumption of discussions between the US and IRAN of interest to us? Because we have a signed contract with Iran for a massive MSC for airport security. It stalled when Trump unilaterally pulled the US out of the JCPOA and threatened sanctions on anybody who did business with Iran.
To get some scale on the potential should it be revived in some form over the next couple of years:
"We are closely monitoring geo-political events with regards to the US and Iran regarding the JCPOA agreement. As reported in our 2018 Annual Report and our 2019 interim Report we previously signed a 15 year, €24 million per annum contract for airport security, with the full support on the British Government, which was put on hold when President Trump unilaterally withdrew from JCPOA. Should circumstances change and US and international sanctions, including banking, be lifted, there remains an opportunity for our German office to revisit this prospect."
OTUP.... rather than guessing at what airports in the air may, or may not be passing over the country,,,, or be arriving or leaving,,, try this link,... which is the departure flights for just one of the five airports, for today.
Date: Wed 16-Jun-2021
Airport: (FIH) N'djili Airport
More FIH Departures FIH Weather FIH Airport Delays
Flight Carrier Destination Departure Status
BU* 4735 CAA (MJM) Mbuji Mayi 8:00 AM Scheduled
8Z* 10 Congo Airways (FBM) Lubumbashi 9:00 AM Scheduled
BU* 3331 CAA (FBM) Lubumbashi 9:30 AM Scheduled
KQ 555 Kenya Airways (NBO) Nairobi 10:00 AM En Route
AZ 5513 ^ Alitalia (NBO) Nairobi 10:00 AM En Route
ET 840 Ethiopian Airlines (ADD) Addis Ababa 1:40 PM Scheduled
KP 1014 ^ ASKY (ADD) Addis Ababa 1:40 PM Scheduled
KQ 2543 Kenya Airways (NBO) Nairobi 2:20 PM Scheduled
TK 6512 Turkish Airlines (NBO) Nairobi 2:40 PM Scheduled
WB 261 RwandAir (KGL) Kigali 4:15 PM Scheduled
KP 44 ASKY (BZV) Brazzaville 5:55 PM Scheduled
ET 1017 ^ Ethiopian Airlines (BZV) Brazzaville 5:55 PM Scheduled
SN 358 Brussels Airlines (BRU) Brussels 9:00 PM Scheduled
UA 9984 ^ United Airlines (BRU) Brussels 9:00 PM Scheduled
AF 738 Air France (CDG) Paris 9:00 PM Scheduled
DL 8714 ^ Delta Air Lines (CDG) Paris 9:00 PM Scheduled
KL 2070 ^ KLM (CDG) Paris 9:00 PM Scheduled
I think that to fully understand the importance of these two new MSC’s you have to look back at the past two years annual revenue.
2020- £10.0M ( Co-vid affected)
1 The 5 airport contract is predicted to generate £4.8M in the first 12months, operating at a reduced 50% capacity due to covid,… so with the potential to generate circa £10M annually as volumes return. ie this airport contract alone, over the course of the next 2 or 3 years,..has the potential to double the current sales…. and it is a minimum 20yr contract.
2 Todays Liberian Contract will generate sales of circa £0.9M annually, with screening commencing in September. This represents circa 10% of the total sales achieved in 2020 and 2019. So, also a significant contract win, and again, a decent length of contract, minimum of 10yrs.
Very encouraging outlook now, and looking forwards the length of these two contracts, 20yr s and 10yrs respectively, with potential to extend, really starts to underpin the core annual sales,... and provide the security that has been lacking over the past few years. If one or two more could land... and we know that we are active and on the ground in Saudi,....pursuing a Port(s) contract.... then this could be the year that WSG finally come good.
3 MSC are as follows:
1 Sierra Leone- Freetown International Airport..
We get paid, per passenger departing at circa $40/head-- Pre-covid capacity growing and was up to circa 120K/annum.. so circa $5M year.... or £1M/qtr
2 TEMA- Ghana port screening- upfront capital and staff on the ground paid for by others-- we get paid on a fee/per container basis,... which look at figures of TEU volume and sales revenue generated looks like circa $2/TEU. Current throughput of the port circa 1M TEU's, but recent extension and upgrading of the Port is ongoing... final phase due to be completed by year end. To date build works have been onetime or ahead of schedule. Once completed the Port will have the capacity to handle 3.5M TEU's... so considerable room for growth. TEMA will then be the largest port in West Africa. The works have included dredging to provide 4 new deep berths,.. and these deep births are required to service the super container vessels which can carry 14,000+ TEU's each.---- Even at 1M TEU's this generates circa $2M sales revenue an if ramped up to nearer max capacity over the next few years this could easily represent sales revenue in excess of $5M
3 The new MSC announcement --- clearly revenues of $6M/annum, at 50%.... $12M..... normal,.. and with further growth potential--- plus a 20yr contract........
Key facts about today-
length of contract.min 20yrs with renewal option
Anticipated sales revenue fo circa£5M/annum operating at current 50% pre-covid capacity...ie significant growth opportunity in the short term.
11th largest country in the world, heavily reliant on aviation industry for travel
Huge endorsement for WSG in the African continent-- now active in Sierra Leone and Ghana.
Underlines the importance of the Euro Ops - francophile- acquisition.
IMHO we now have 3 MSC's the potential to generate min £10M annual sales revenue over the short term ( 12-18months) with £15M plus not far away.
Apologies for posting facts.
Old news,... but worthy of re-posting amongst the poetic ramblings of those too busy to attend the AGM but have plenty of time to spend on here.
The President of the Ports Management Association of West and Central Africa (PMAWCA), Michael Luguje (pictured), who happens also to be the Director-General of Ghana’s Ports and Harbours Authority (GPHA), has revealed that with the completion of phase 1 of the MPS Terminal 3, the Tema Port is currently the biggest in terms of capacity of all ports in the West and Central Africa.
‘We have the biggest container terminal within West and Central Africa. If you look at single terminal volumes that are handled, we were able to do 1 million TEUs at the close of 2018 and 2019. Barring COVID-19, our target was to cross the 1 million mark,’ the DG said.
Crystal... "still using covid as an excuse for not letting shareholders attend..."
Are you reading the correct RNS? It is an OPEN meeting---
". It is the Board's intention to proceed with holding the Annual General Meeting on 24 June 2021 at 11.00 a.m. (BST) as an open meeting. Accordingly, Shareholders are invited to attend this year's AGM in person."
It's cheaper than that Ian---- the fit to fly test starts at £72.
How much cash is left?... not seeing it mentioned here...so tread carefully...they normally come twice a year on WSG if history repeats itself...
Did you ask the question Dacs,.. seeing as you are asking it?.... It didn't appear that you did? Do you always rely on other people ?