Westminster Group Regulatory News (WSG)

11 April 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

Westminster Group Plc

('Westminster', the 'Group' or the 'Company')

Completion of Signing of 10+ Year, Multi-Million £ Managed Services Contract covering 5 Airports in the DRC

Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide, is pleased to announce that the ratification process for the 10+ year contract, initially signed in June 2021 for security services to five airports in the Democratic Republic of the Congo ('DRC'), Central Africa, has been completed and contracts signed.

Contracts were officially signed today during the UK - DRC Trade and Investment Mission, at a formal ceremony in Kinshasa by board representatives of both Westminster and the airport authority, La Regie Des Voies Aeriennes ('RVA'), in the presence of various government officials and dignitaries including Lord Popat, the UK Prime Minister's Trade Envoy; John Humphrey, His Majesty's Trade Commissioner for Africa; HE Alyson King OBE, HM Ambassador to the DRC; and HE Ndolamb Ngokwey, Ambassador of the DRC to the United Kingdom.

The contract, which is for an initial period of 10 years, with a five-year renewal thereafter, is to provide comprehensive ground security operations, initially at four international airports and one national airport in the DRC.

Westminster will provide all the investment and expertise required to upgrade security at the airports. This not only includes the provision of advanced detection, surveillance, and screening equipment, but also the maintenance, training and various support services required to ensure DRC's airport security is run to the highest international standards. This enhancement in airport security will assist the authorities in DRC in developing and maintaining 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.

As part of the programme, Westminster will also be establishing an aviation security training academy to provide certified training to international standards for all aviation security ('AVSEC') staff within the country, ensuring that DRC's AVSEC staff are amongst the best trained, motivated, and valued in the entire 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 US$, 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'). Based on current international embarking passenger levels, the contract is expected to generate revenues of circa US$10m in the first 12 months of operation. In addition, there is an opportunity under the contract for further revenues, in due course, from domestic traffic and cargo screening operations.

The contract includes a 90-day transition period to allow for operational planning and recruitment processes to be completed. Operations and revenues are therefore expected to formally commence in July 2024, although Westminster will immediately deploy its transition team to commence planning, recruitment, training, procurement and logistics.

Initial funding for the project will be from Westminster's own resources and the Company has engaged with specialist corporate advisors to secure required funding beyond that stage, with several options under consideration focussed on project-based debt capital.

Commenting on the Contract Award, Westminster's Chief Executive Officer, Peter Fowler, said:

"I am delighted to be able to announce this important new contract during the UK - DRC Trade and Investment Mission.

"The Democratic Republic of the Congo is a key addition to our international aviation security services, and we believe the country has exciting growth potential. With a surface area equivalent to that of Western Europe it is, by area, the largest country in sub-Saharan Africa, the second largest in all of Africa, and the 11th-largest in the world. It is also the most-populous Francophone country in the world. Air travel is therefore an important and a necessary requirement within this vast country. DRC is extremely rich in natural resources and has the potential for sizeable economic growth. I look forward to Westminster having a long-term presence in the country and in playing our part in the successful growth and security of the country's numerous airports."

Commenting on the development, RVA Chairman, Prof. Tryphon Kin-Kiey Mulumba, said:

"The Government of the DRC and the RVA are committed to creating world-class airport operations within the country, which will create economic benefits for the country and its citizens.

"We have been impressed by the professionalism and expertise shown by Westminster and we see partnerships like this with leading global organisations, as a key part of this strategy."

Lord Popat, the UK Prime Minister's Trade Envoy to the Democratic Republic of Congo, who is leading the UK Trade & Investment Mission 10th-11th April in Kinshasa, added:

"Britain is keen to develop and grow bilateral trade and relationships between the UK and the Democratic Republic of Congo and I am delighted we have been able to announce an important and long-term contract award between British based Westminster Group and the Regie des Voies Aeriennes during the UK Trade & Investment Mission event. It is a clear indication of the business opportunities that exist between our two nations."

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 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 (including Fever 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.

The Westminster Group Foundation is part of the Group's Corporate Social Responsibility activities. www.wg-foundation.org

The Foundation's goal is to support the communities in which the Group operates by working with local partners and other established charities to provide goods or services for the relief of poverty and the advancement of education and healthcare particularly in the developing world.

The Westminster Group Foundation is a Charitable Incorporated Organisation, CIO, registered with the Charities Commission number 1158653.