Last checked at 26 May 2016 07:01
26 May 2016
Westminster Group Plc:
Middle East Airport - Letter of Intent
Westminster Group Plc ('Westminster', the 'Group' or the 'Company'), the AIM listed supplier of managed services and technology based security solutions to governments and government agencies, non-governmental organisations (NGOs) and blue chip commercial organisations worldwide is pleased to announce it has now received a Letter of Intent from a Middle East Airport Authority relating to a long term airport security contract.
In March 2016 the Company announced that its aviation security subsidiary, Westminster Aviation Security Services ('WASS'), had signed a new Memorandum of Understanding ("MoU") with a Middle East Civil Aviation Authority for the provision of long term (up to 25 years) aviation security services at a significant international airport. Following the signing of the MoU, the Company undertook and completed a gap analysis review of the airport concerned and subsequently commenced contract negotiations.
The Letter of Intent now received indicates the authority's intention to enter into contract with WASS in due course for the provision of long term airport security services. Under the draft terms of the contract WASS would generate revenues in excess of £30m per annum based on the current PAX throughput and the currently anticipated fee per passenger.
This project represents a major growth opportunity not only for Westminster, but is also significant for the United Kingdom and consequently we are working closely in conjunction with the UK Government as it has its own specific hurdles to overcome prior to contract finalisation.
The Company is in discussions with potential specialist financing partners regarding supporting the deployment of this large incremental opportunity.
Commenting on the Letter of Intent Peter Fowler, Chief Executive of Westminster Group, said:
"Whilst the last couple of years have been a challenging period for our Group, Westminster has continued to expand its international presence and to advance its large scale project opportunities with a particular focus on airport security, which has the potential to transform the business. This Letter of Intent is an example of such a project.
"While there can be no certainty as to the timing or final outcome of contract discussions, the receipt of this Letter of Intent is an encouraging step and demonstrates the progress that we have made to date. This, and progress on other long term contract discussions, gives us confidence that our strategy will deliver more positive results in the future."
For further information please contact:
Westminster Group plc. | Tel: 01295 756 300 |
Peter Fowler (Chief Executive) |
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Ian Selby (Chief Financial Officer) |
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S. P. Angel Corporate Finance LLP (NOMAD & Broker) | Tel: 020 3470 0470 |
Stuart Gledhill |
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Walbrook PR (Financial PR) | Tel: 020 7933 8780
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Tom Cooper/Paul Vann | 0797 122 1972 |
| tom.cooper@walbrookpr.com |
Notes:
Westminster Group plc is a specialist security and services group operating worldwide via an extensive international network of agents and offices in over 50 countries.
Westminster's principal activity is the design, supply and ongoing 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 ferry services, 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. For further information please visit www.wsg-corporate.com