Placing & Trading Update

RNS Number : 6370Y

Westminster Group PLC

26 February 2013

 



26 February 2013

Westminster Group Plc:

Placing and Trading Update

The Board of Westminster Group plc ("Westminster" or the "Company") is pleased to announce a placing to raise £1,475,000 (before expenses) by the issuance of 4,916,667 new ordinary shares of 10p each ("New Ordinary Shares"), representing approximately 13.1 per cent. of the enlarged issued share capital of the Company, at a price of 30p per share (the "Placing").

Subscribers to the Placing include institutional and other investors (including new strategic investors).

The Placing will expand the Company's capital base and its proceeds will be used for working capital and supporting project expansion.

The New Ordinary Shares under the Placing are being placed under existing authorities to issue and allot shares in the Company. Application will be made to London Stock Exchange plc (the "Exchange") in relation to admission of these New Ordinary Shares to AIM and it is expected that dealings will commence on or around 4 March 2013 (the "Admission").

Total Voting Rights 

The New Ordinary Shares will rank pari passu with the existing shares of the Company. Following this issue, the total issued share capital of the Company consists of 37,525,571 Ordinary Shares of 10p each with voting rights. The rights attaching to the New Ordinary Shares, including as to voting, are the same as those of the Existing Ordinary Shares. The Company does not hold any ordinary shares in treasury. Therefore, the total number of voting rights in the Company is 37,525,571 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

TRADING UPDATE

Airport Managed Services Business

The West African airport contract announced in February 2012 continues to perform well. The new terminal, capable of accommodating up to 900,000 passengers a year has now opened and commenced operations.  Since the start of the year we have been informed that further new carriers will be commencing operations in 2013, and furthermore that existing operators are expanding their capacity on the route.  This in turn should benefit revenues and margins in 2013.  We have received further positive feedback from the aviation community as we continue to improve security. 

We are pleased to report that previously announced contract discussions regarding the international airport in East Africa are progressing well. Westminster's survey teams have completed their assignments and developed the required long term contract project plans; the clients have visited and been impressed by Westminster's operations and contract negotiations are now in advanced stages.  Other similar sales prospects continue to progress.

The cash and collections model for the airport business is operating well and at present we are collecting debts in approximately 35 days on average, which compares well to our invoicing terms of 30 days.

Products and Solutions Business

We are pleased to report that so far this year we have won orders worth approximately $4.0m from governmental and corporate customers. This includes $3.25m for a scanning system for a Middle Eastern oil and gas installation and $0.35m from two African governments for specialist security equipment.

Investment

The Company is delighted with the support for the Placing shown by institutional and new strategic investors, including certain aviation development partners where we have agreed to settle their fees amounting to £225,000 by issue of shares in the Placing. In addition to the Placing, the Company is pleased to report that it is in advanced negotiations regarding the resolution of the Synergy Capital loan note and will update further as appropriate.

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

"Westminster is at a game changing point in its growth plans.  We are very excited to be able to welcome our new investors to the Company and look forward to updating the market on our advanced contract negotiations referred to above at the earliest opportunity."

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 + 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

 

END

 

 

IOEUVUKROWAUUAR