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Westminster Group plc: Riddler article

27 Mar 2014 | by: Richard Mason

ValueTheMarkets welcomes a feature article by Riddler

Today I am covering a security firm called Westminister Group plc who state that:

“Westminster’s principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, 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 manned services, consultancy and training services.”

While I have followed these for over 2 years I believe we might be at a turning point both chart wise and in terms of levels of new business. They are currently negotiating on some very large long term contracts but just this week there were two new pieces of news that signalled a potentially significant next few months. One of these was that a new strategic investor was willing to invest at near to the 2mth high of 80p when he invested £300k at 77p, and the second piece of news was a commercial agreement which states:

“The contract, secured by Westminster International, is for the provision of consultancy services to review and assess the country’s K9 law enforcement operations, including Police, Customs, Prisons and Army.”

Also of note is that Westminster might also be in line to gain work in the UK due to it’s larger FTSE rivals Serco and GFS being barred from tendering for new Government work for the next year at least. In fact a recent Observer article in March stated that the whole scandal could be much larger than expected which would mean the Government may have to look to firms like Westminster for these large contracts. Finally, while it must be noted that Westminster group is currently capitalised at only £35mln and trades on the AIM market, make no mistake that this company could well be a FTSE350 constituent in the next few years. It has had public support from many agencies and government bodies and indeed was a winner of a very prestigious award in late 2013.

Buy @ 73p for the long term, or more cautious investors might await a break of the Bollinger resistance at 80p.

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