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17 Jan 2012 07:00
17 January 2012
Westminster Group Plc:
Trading Update
Westminster Group Plc ('Westminster' or 'the Group'), the AIM listed supplier of system solutions and products to the security, defence, fire protection and safety markets worldwide, is pleased to provide a trading update for the 12 months ended 31 December 2011.
Revenues for the year were approximately £10m (2010: £3.8m), an increase of some 260%, reflecting a much improved second half performance where revenues were in excess of £8m, as we delivered against the orders received in the first half. The Group achieved a significant underlying operating profit in the second half of the year, which compared favourably to the same period last year. Underlying gross margins for the second half of the year are expected to show further improvement from those in the first half of the year which were 16%. Cash balances at 31 December 2011 were £0.4m (2010: £0.3m).
Our record order intake for the year was approximately £14.7m (2010: £2m) of sales value and we enter 2012 with a contracted order book of £4.7m (2011: negligible) which, we expect to benefit the first half of this year.
Our pipeline of potential business continues to strengthen and we are attracting strong interest from high growth emerging markets in Africa, the Middle East and Asia, and we are aligning our sales efforts to maximise this growing opportunity. As referred to in our interim announcement on 30 September 2011, the Group is focussed on developing a recurring revenue model with long term contracts as a counter balance to its traditional large and volatile contract base and has identified certain opportunities which it is actively pursuing.
Commenting on current trading Peter Fowler, Chief Executive of Westminster Group, said:
"These figures demonstrate the successful delivery of the record order intake in 2011. Encouragingly, the order book going into 2012 is materially higher than at the comparative period in 2011. This much improved performance reflects the success of our decision to strengthen the management team with a series of key appointments which began in July 2011 with the appointment of a new group CFO and COO for our Longmoor division. We plan to further strengthen the team to help us address the significant growth opportunity that exists for Westminster.
"Westminster's opening order book is a key indicator of the momentum in the business. The level of new business enquiries is at a record level, with the mix of business improving to smooth the revenue profile of the business.
"We anticipate that 2012 will be an exciting and pivotal year for Westminster as we look to profitably grow the business to the next level."
Enquiries:
Westminster Group plc | Tel: 01295 756 300 |
Peter Fowler (Chief Executive) | |
Ian Selby (Chief Financial Officer) | |
Fairfax I.S. PLC (NOMAD + Broker) | Tel: 020 7598 5368 |
Stuart Gledhill / Katy Birkin | |
Winningtons Financial (Financial PR) | Tel: 020 3176 4722 |
Tom Cooper/Paul Vann | 0797 122 1972 |
Notes:
Westminster Group plc is a leader in the supply of system solutions and products to the security, defence, fire protection and safety markets worldwide.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, risk assessments, training and close protection services. These can range from product only assignments, such as the supply of specialised scanners, to the design and implementation of an integrated system solution such as a border detection and surveillance system. The majority of its customer base, by value, comprises governments and government agencies, non governmental organisations and blue chip commercial organisations.
For further information please visit www.wg-plc.com
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