Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Yes ... I have... and I posted the numbers a few days back together with the departure tax?.. together with the relevant links.
How much research have you done? Would care to comment t on my calc regarding potential value of the contract to the SP,.. would be good to hear your thoughts.
Well,.... no longer an IF, surely just a WHEN,.. hopefully in the timescale that they have put out there. Just 16 trading days before the end of April.
For anybody sticking there head in here and wondering why the rise:
"I am pleased to report we have made significant strides forward with several of the large-scale, long-term managed services airports and ports opportunities, each of which would, when secured, provide multi-million-pound step changes in annual revenues. Foremost amongst these is our project in the Democratic Republic of the Congo (DRC) for which I am delighted to announce that the long-awaited ratification process is currently being completed, being the final part of the formal procurement procedure for the now 10+ year contract signed in June 2021 for security services to 5 airports in the Democratic Republic of the Congo ('DRC'), Central Africa. Arrangements are now being made for a senior Westminster team to travel to the DRC with a UK Government Trade delegation in April to hopefully finalise matters and to prepare for commencement of the project. We expect to make a further announcement after that visit."
https://www.lse.co.uk/rns/WSG/interim-results-xlz7z1q0rg4v4au.html
Sorry,.. here is the link.
https://twitter.com/wg_plc
Dr M,
Quite a bizarre post from WSG---- just re-iterates what they already put out there in the interims,... unless it is just reinforcing the 'heads up'... to the faithfull.--? Let's hope it is PF trying to show us the way.
Max,
Well it is all being driven by the 'off to DRC' in April for the hopeful final ratification. Sincerely hope that we don't get let down again and it gets pushed back as that will be very disappointing,.... we are surely due a bit of reward after all of our years of patience and understanding! Fingers crossed, 1st week in April almost done.
........ nor me,,,,, as it would remind me too much of the good old bad old days ..... please post.... " I wouldn't want to be out of this one at the week-end'.
I haven't read that for a while and I'm feeling nostalgic.
Reece,.... FYI ...HMG website suggest that the UK-Africa Investment Summit to be held in London have been delayed and date will be pushed back due to other international commitments etc.,
That is not the visit that WSG are arranging for their visit to DRC.
PUBLISHED 8TH FEB---- no date mentioned for visit!
The Prime Minister has today made two new appointments to his Trade Envoy programme.
The appointments are:
Tom Hunt MP to Bangladesh
Stephen Metcalfe MP to Dominican Republic, Panama and Costa Rica
Trade Envoys support the UK economy by supporting British businesses to take advantage of the opportunities arising from the UK’s global trade agenda. They champion Global Britain and promote the UK as a destination of choice for inward investment across all regions of the UK, helping to level up the country.
The new appointments will extend the total number of Trade Envoys to 37 parliamentarians, covering 67 markets.
The Trade Envoys will work with the Department for Business and Trade’s global network to strengthen the UK’s trade and investment relationships within their appointed markets and break down barriers to doing business for UK firms.
https://www.gov.uk/government/news/prime-ministers-trade-envoy-programme-appointments--5
I've found the breakdown of passenger travel International and domestic for 2014 and I have applied the airport taxes that we also have confirmed to that year. It's quite interesting and far more lucrative than I had initially imagined as I was struggling to work out how WSG had stated that the contract was worth $6M/annum from the outset.
So,.... DEPARTURE... volumes, on which WSG revenues are based...
2014 figures. for whole of DRC, were as follows:
International= 244,000. x $55 = $13.4M
Domestic= 144,000 x $10= $1.4M
TOTAL = $14.8M
The top 4 airports carry the vast majority of passengers and I would estimate that a MINIMUM of 65% would be using what we believe will be WSG serviced airports, 65% of the $14.8M departure tax would be collected by the managed services provided by WSG = $8.9M.
Clearly we do not know what proportion of the departure taxes will be due to WSG and the DRC were using some of these taxes for investing in new infrastructure. IF we ASSUME that they would collect circa 50% of the over all revenue, that would equate to $4.8M..... or £4M ( at $1.2/£1)..... or 12p/share ( with 330m shares and at P/E of 10)
Arguably, if the contract is 20years, a very long term,... you could argue a higher p/e?
https://dlca.logcluster.org/print-preview/4402
I'm tempted to hire a private plane, nip up to Oxford,.. and fly them over myself!!
So,.. quick bit of research this morning showed a high of circa 800,000k pax across all important, of which there are 4 international airport, the high being in 2012. This fluctuates a lot but plunged to a low of 80,000 in 2020 at start of covid period. This started to recover and Was up to 400,000 in 2021
I can't find any further detail after that, but would imagine that growth has continued.
The departure airport tax as at 2022, was $55 ( international flights).. and $10 ( domestic). Clearly we don't what proportion of that would be due to WSG.
https://drcprecop27.medd.gouv.cd/en/infos.php
Steven,....
Dr M.... is quoting the recent Inerims,....--- historically the Serviced managed contracts have a high operating margin.... and this fluctuates between circa 50+ and 60+%---- extract from recent interims below.
"The Group generated a continuing gross profit of £1.6 million (H1 2023: £2.2 million; H2 2022: £2.9 million) which equates to a gross margin of 57% (H1 2023: 64%; H2 2022 56%). The increase in high margin services sales in H1 2023 changed the margin mix which reverted to a more normal mix in H2 2023."
https://www.lse.co.uk/rns/WSG/interim-results-xlz7z1q0rg4v4au.html
Dr M,...
Interesting. You made me go back through the RNS's.....to find the original. First thing to note... is that its mentions a minimum 20yr contract..... NOT... a 10yr contract that we have been quoting. And you are quite right... they state circa $6M revenues in first 12months... with scope to increase as volume builds.--- Let's hope those are the numbers.
'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 contract, which is for an initial period of 20 years, with a 5-year renewal thereafter, is to provide comprehensive ground security operations, initially at 4 international airports and 1 national airport in the DRC. Westminster is to provide its expertise in assisting the authorities to develop and maintain world-class airport security services, opening up the potential for growth in air traffic by attracting new international carriers and commercial enterprises to the region.
___________________
The contract is based on Westminster's managed services model successfully deployed elsewhere in Africa. Revenues will be driven by embarking passenger numbers using the airports and funded by a per passenger fee denominated in USD, collected through the ticketing system and payable directly to Westminster by the airlines or a suitable collection agency such as the International Air Transport Association ('IATA'). Whilst air travel remains impacted by COVID, with passenger numbers estimated to be currently around 50% of normal levels and full recovery not expected until 2023, the contract is still expected to generate revenues in excess of $6m in the first twelve months of operation with proportional growth in revenues and margins as passenger numbers recover to normal levels. In addition, there is an opportunity under the contract for further revenues from cargo screening operations."
https://www.lse.co.uk/rns/WSG/min-20-year-5-airport-security-contract-in-africa-ao7eeuae6hkxqle.html
reece,
i've just done a *** packet calc which suggests that the drc contract might be worth circa 4p on the sp.
if we assume the same model as they operate in sl.
400,000 pax/annum last available figures that i have been able to find,.( i posted the link a few posts back)... across 30-ish airports many of which are freight only. again, if we assume that the security screening managed services will target the largest 5 airports we should be looking at circa 66% of pax, circa 275,000.
of which,.... wsg would be getting fees ( paid by the airline companies) for each departure scan;
275,000 x 50% ( departure)= 137,500 pax at say $25 ( believed to be sl figure)= $3.44m revenue
$3.44m x operating profit, circa 50% ( as per trading statement) = $1.78m/annum
$1.78m /330m shares. = $0.005 eps ....
p/e ratio,... say 10..... = circa $0.05p share
$1.2=£1....=== circa 4p share?
all up for debate!?
as rifle says,... we need confirmation of funding for installations etc.,-- with a signed contract and upfront payment i wouldn't see that as an issue.
... sp value on the ASSUMPTION,... that the DRC contract would generate circa $10M/annum for 10yrs, at circa 50% profit?
____
Fundamentals,... as of today as indicated on this LSE site.
Shares in Issue 330.51m
Market Cap. £5.95m
Market Size 30,000
PE Ratio 49.18033
Earnings 0.0366
Dividend 0.00
Yield 0.00%
"In 2021, number of air passengers carried for Democratic Republic of the Congo was 392,102.2. Though Democratic Republic of the Congo number of air passengers carried fluctuated substantially in recent years, it tended to increase through 1988 - 2021 period ending at 392,102.2 in 2021."
https://knoema.com/atlas/Democratic-Republic-of-the-Congo/Number-of-air-passengers-carried