Westminster Group spikes after securing major security contract in Asia (WSG)

By Richard Mason

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Security business Westminster Group (WSG) leapt by more than a fifth to 9.7p on Wednesday morning after securing a $3.48m deal covering two ports in Asia.

The £10.8m firm, which was trading at a two-month high at writing, revealed that its technology division will provide advanced container screening solutions to two separate ports in an as-yet-un-named Asian country. It added that the contract has been under negotiations for several months and will begin as soon as export licencing has been granted.

Under the contract, around $3.05m relates to the supply and installations of the systems and its expected to be delivered predominantly in the final quarter of this year. The remaining c.$430k relates to maintenance services and will be paid out over the next two years.

Westminster is a specialist security and services group that operates worldwide through a network of agents and offices in more than 50 countries. Its principal activity is the design, supply, and support of advanced technology security solutions.

This covers surveillance, detection, tracking, and interception technologies as well as the provision of long-term managed services contracts in airports, ports, and similar facilities. The majority of the business’s customers by value are governments, government agencies, non-governmental organisations, and blue-chip commercial organisations.

On Wednesday, Westminster’s CEO Peter Fowler said the Asia contract was a testament to the firm’s ‘expertise and global reach’ following the recent completion of a $4.5m vehicle screening contract in the Middle East.

‘I am delighted to be able to announce this latest new contract award for large scale screening solutions, which has been secured after a prolonged period of negotiations,’ he added. ‘We have commenced 2019 on a strong note ahead of budget and this latest award underpins our expectations for the year. Security of ports, like airports, is a high priority for governments around the world and Westminster have been developing wide-ranging solutions covering various aspects of port and airport security. This contract is one of several large-scale projects we are currently negotiating in different parts of the world.’

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Author: Richard Mason

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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