$150m+ W. African Airport Security Contract

RNS Number : 6856X

Westminster Group PLC

20 February 2012

 



20^th February 2012

Westminster Group Plc:

Major New 15 Year Contract Award with $150m USD revenue potential

 Complete Airport Security Service

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 announce that its aviation division has secured a major 15 year contract to provide complete airport security at an international airport in Africa.

The contract, which has a potential revenue value in excess of $150million USD over the term of the contract, is to provide comprehensive ground security operations at the main international airport of a West African nation.

The contract involves the provision of a wide range of detection and surveillance technologies as well as the deployment of security personnel within the terminals, the airside zone and the airfield perimeter.

Following a two month pre-deployment transition period, operations will commence in May 2012. The contract will be funded by a per passenger fee denominated in USD, payable directly to Westminster by airlines using the airport and is expected to generate revenues of $4.5m in the first twelve months of operation. Westminster expects that, based on current passenger volumes and growth rates being sustained across the life of the contract, then revenues could be in excess $150m.  The airport, which is seeing a marked increase in traffic due to the growing economic prosperity of the country in question, is currently utilised by a number of major European Airlines.  Additional North American and Middle Eastern Airlines are expected to commence services in the foreseeable future, further increasing passenger numbers and, in turn, revenues to Westminster.

Westminster expects to use existing working capital resources during the early stages of this project.  The Group confirms that discussions previously referred to regarding potential strategic investors are ongoing and will provide further updates as, when, and if required.

The contract is illustrative of the bespoke nature of integrated security solutions that Westminster provides to clients with large and complex security requirements.

Commenting on the contract award Peter Fowler, Chief Executive of Westminster Group, said:

"I am delighted to be able to announce a major new contract award for our aviation security business which will create over 100 new jobs in West Africa and provides good visibility of revenue and earnings for the foreseeable future.

"Westminster has valuable reference sites for security solutions in airports worldwide and our aviation business is currently experiencing record interest, including enquiries from several other similar international airports. Last month we announced the appointment of Dr Phil Jackson as the new Chief Operating Officer of our aviation business and his experience will greatly assist in the delivery of this and other potential contracts in this sector.

"This latest multi-million USD, multi-year contract award follows other multi-million contract awards secured in 2011 and is in line with the Group's strategy of building large scale, long term, fully integrated security solutions with recurring revenue streams.

"The award is a testament to our strategy of focussing on growing markets in the Middle East, Asia and Africa where Westminster is building a significant presence and potential.  An indication of that potential can be seen from a recent report from the IMF which states that, in the next five years, seven of the world's ten fastest growing economies will be in sub-Saharan Africa, including many of the countries we are active in."

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)
Fairfax IS Plc (NOMAD + 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.wg-plc.com

 

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