New 10 Year Franchise Agreement in Mexico

RNS Number : 9268S

Westminster Group PLC

30 September 2014

 



30 Sept 2014

Westminster Group Plc:

10 year Franchise Agreement - Mexico

Westminster Group Plc ('Westminster', the 'Company' 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 announce the signing of a new 10 year franchise agreement (the 'Agreement') for Mexico.

Under the Agreement Westminster has licensed the use of the Westminster brand under the name of Westminster Mexico SA de CV. ('WM' or the 'Franchisee'). The franchise agreement will allow WM to operate as Westminster's exclusive agent in Mexico promoting all Westminster products and solutions within the country and sourcing all products and solutions exclusively through Westminster.

Under the Agreement the Franchisee will be responsible for all costs associated with operating WM in Mexico including setting up offices and staff recruitment as well as promoting Westminster's brand and business. Westminster will provide management, technical and sales support throughout the term of the Agreement in order to maximise opportunities within Mexico.

The Franchisee will pay Westminster an annual franchise fee worth £1.9m over the 10 year period commencing October 2014 and is required to achieve at least £1.5m of business per annum with Westminster commencing from year 2.

Commenting upon the new franchise, Westminster CEO, Peter Fowler, said:

"I am delighted to be able to announce this latest franchise operation for Mexico which we see as an important and growing market for our products and services.

"Mexico is the 2^nd largest economy in Latin America and one of the "Mint" countries which are forecast as the next emerging economic giants. The IMF expects Mexico to be a top 10 global economy by 2018. This economic growth combined with internal security requirements make it a logical market for Westminster.

"This latest example of our expansion into growing economies in different parts of the world underpins our strategy of diversification and will not only enhance our international presence and strong corporate brand but, with the potential that Mexico offers, could lead to substantial business far in excess of the franchise fee."

For further information please see the Company's web site, www.wg-plc.com, or contact:

Westminster Group plc	Tel: [phone]
Peter Fowler (Chief Executive)
Ian Selby (Chief Financial Officer)
S. P. Angel Corporate Finance LLP (NOMAD and Broker)	Tel: [phone]
Stuart Gledhill/Katy Birkin
Winningtons Financial (Financial PR)	Tel: [phone]
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 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.wsg-corporate.com.

 

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