Westminster Group Regulatory News (WSG)

21 Jun 2007 08:00

Westminster Group PLC21 June 2007 For Immediate Release 21 June 2007 WESTMINSTER GROUP PLC Admission to the Alternative Investment Market (AIM) Publication of Admission Document and Placing of 4,537,336 new Ordinary Shares at 67.5p per share Westminster Group plc ("Westminster" or "the Company") a supplier of systemsolutions and products to the security, defence, fire protection and safetymarkets worldwide, announces that it is applying for admission to AIM, a marketoperated by the London Stock Exchange plc. It also announces the publication ofits AIM Admission Document and the Placing of 4,537,336 new Ordinary Shares inthe Company at 67.5 pence per share through J M Finn & Co Ltd, the Company'snominated adviser and broker. Placing Statistics Issue Price: 67.5p Total number of shares being placed: 4,537,336 Total number of shares in issue immediately following Admission: 13,572,336 Percentage of the enlarged share capital being placed: 33.4% Market Capitalisation at the issue price: £9.16million Estimated net proceeds of the placing £2.5million Business Westminster's principal activity is the design, supply and ongoing support ofadvanced technology security solutions. These can range from product onlyassignments, such as the supply of specialised scanners, to the design andimplementation of an integrated system solution such as a border detection andsurveillance system. The majority of its customer base, by value, comprisesgovernments and government agencies, non governmental organisations and bluechip commercial organisations. In recent years the Company has devoted much of its efforts into building aninternational presence. It currently has a network of some 60 agents anddistributors operating in over 40 countries. Westminster's principal marketsoutside the UK are in the Middle East, the Far East and Africa. The origins of the business date back to 1988 when Westminster Security SystemsLimited ("WSS") was formed to provide security systems and equipment to both thedomestic and commercial markets exclusively in the UK. In 1990 WSS was acquiredby the Menvier-Swain Group Plc and in 1996 WSS was the subject of a managementbuyout led by Peter Fowler, the Company's current Chief Executive. In 2000, WSS was sold, but the manufacturing business and assets were retainedand transferred to the Westminster Group. Since then the Directors ofWestminster have focussed the business on international security. Numerousinternational incidents since the 9/11 disaster in 2001 have resulted in anumber of governments and businesses focussing much greater attention onimproving safety and security measures generally. In particular, certaingovernments have significantly increased spending to better protect theirborders and infrastructure. It is difficult to quantify accurately the value of the markets in whichWestminster operates; however the Directors believe that hundreds of billions ofUSD are spent on security each year. It was estimated in 2004 that the privatesecurity industry's turnover was between $100 and $120 billion worldwide and wasforecast to grow at a rate of 7-8% annually (Source: The Security Economy, OECD2004). The Directors believe that the market drivers for the global electronic securitymarket are the perceived threats of crime, insurrection and terrorism togetherwith a growing mobility of people and goods across the world. It has been widelyreported that these perceived threats have increased in recent years. The Company's international network of some 60 agents operating in 40 countriestypically generates sales leads and work with Westminster in preparing therequired tender documentation. The majority of these agents are based in theMiddle East, the Far East and Africa where indigenous competition is limited andthe Directors believe that the reputation of British companies in the areas inwhich Westminster operates remains strong. The Directors consider that the operation of this network provides Westminsterwith significant advantages in competing against often much larger companies. Itis the intention of the Directors to expand further this international networkand to increase direct marketing support in generating new businessopportunities. The key differentiators of the Westminster business from its competitors are: • Its ability to evaluate swiftly the needs of clients and to providecost effective solutions based on a broad knowledge of the available productsand systems; • The Company's extensive agent network provides access to good localknowledge and intelligence, in country logistic support, local and costeffective labour resource and, crucially for many customers, a facility forafter sales engineering service support and back up; and • The Company's ability to offer a wide range of products within safetyand security, enabling it to provide a turnkey solution for each customer'sneeds, an approach which is very appealing to Westminster's target market. Current trading and prospects: The Directors have been pleased with the increased level of enquiries andtenders since the start of the current financial year. In recent months newcontract wins have been secured including the International Atomic Energy Agencyin Romania, the ECO Bank in Ghana, British Council offices in Beirut and the UAEand BP in Algeria. The £2.5million net proceeds of the Placing are intended to be used principallyfor marketing, including the opening of a representative office in the UAE and,in due course, India and Africa, and also to provide additional working capital. Commenting on the flotation, Westminster's Chairman, Lt. Col. Sir Malcolm Ross,currently Master of the Household to the Prince of Wales, said: "The Company's Admission to AIM will not only enable us to access finance forfurther growth, it will enhance the profile of the Group and very importantly,will enable us to undertake some of the larger contracts for our internationalcustomer base." Chief Executive and Founder, Peter Fowler added: "Westminster's markets have grown significantly in recent years and its orderenquiries have risen in number in both terms of size and complexity. In recentmonths new contract wins have been secured, further adding to the Company's 'blue chip' customer base. Our flotation on AIM will enable us to maximise theopportunities open to us." -Ends- Enquiries: Peter Fowler, Chief ExecutiveWestminster Group plc Tel: 01295 756300 Clive CarverJM Finn & Co Tel: 020 7628 9688 Tom Cooper/Paul VannWinningtons Financial Tel: 020 7256 9445 Mob: 07971 221972 or 07768 807631 This information is provided by RNS The company news service from the London Stock Exchange