Last checked at 22 Dec 2017 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014
Westminster Group Plc:
Major Middle East Project Opportunity Update
Westminster Group Plc ('Westminster', the 'Group' or the 'Company'), the AIM-listed supplier of managed services and technology based security solutions, is pleased to provide an update on its previously announced major long-term project opportunity within the Middle East.
On 22 September 2017, the Company announced that certain Board members had met with and reached agreement with the client and other administrative bodies involved on the key points of the long term Middle East project opportunity. Since that time, further extensive discussions have been taking place regarding priorities, order of roll-out and the client's growing requirements.
Whilst these negotiations have taken longer than expected, the Company is pleased to report that senior management, including the Chairman and CEO, have just returned from an extended visit to the country concerned and all but a few more minor commercial and contractual issues have now been agreed. Due to the complexity and increasing potential scope of this project, it has now been agreed to undertake the project in phases, with the initial phase expected to be worth approximately €24m per annum to Westminster. Any future extensions and changes of scope are expected to be subject to price revision.
In order to achieve the commercial and contractual agreement, the contract required approval by a number of governmental departments and organisations, all of which have now been received. The client now has one final internal approval process to complete and whilst with any project of this size and complexity there can never be certainty of timing or outcome, the Company expects to provide a further update on this project opportunity in January 2018.
Plans are in place to raise the required funds to support investment in this project and other potential new Managed Services contracts, details of which will be announced in due course. These plans are now expected to be implemented in Q1 2018 with the commercial and contractual issues having been agreed later than anticipated at the time of our Interim Results announcement in September 2017
The Company will provide a trading update on its business activities for the year to 31 December 2017 in January 2018.
For further information, please contact:
Westminster Group Plc | Media enquiries via Walbrook PR |
Rt. Hon. Sir Tony Baldry - Chairman |
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Peter Fowler - Chief Executive Officer |
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Martin Boden - Chief Financial Officer |
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S. P. Angel Corporate Finance LLP (NOMAD & Joint Broker) |
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Stuart Gledhill | 020 3470 0470 |
Lindsay Mair |
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Caroline Rowe |
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Beaufort Securities Limited (Joint Broker) |
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Elliiot Hance | 020 7382 8300 |
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Walbrook (Investor Relations) |
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Tom Cooper | 020 7933 8780 |
Paul Vann | 0797 122 1972 |
| tom.cooper@walbrookpr.com |
Notes:
Westminster Group plc is a specialist security and services group operating worldwide through an international network of agents and offices in over 50 countries.
Westminster's principal activity is the design, supply and on-going support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long-term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manpower, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations.