onewayticket
29 Dec 2017
Technology Division - State of Play As promised earlier - a Technology Division update.The Technology Division generates its income from many free-standing contracts with government and non-governmental organisations as you will see but without any shadow of doubt it will be linked via vertically to any large scale Managed Services Contract that WSG secures such as the ME Airport deal, that plus focussing on recurring revenues. In a similar vein to the other respective Divisions already highlighted here is a summary of about 15 months worth of RNS’s on the Technology Division.29th September 2016 RNS:“As outlined in the AGM Statement in June, and despite project delays previously identified and which continue, The Technology Division has made a positive contribution during the first half of 2016 with higher margins and a lower cost base…”“The Company has secured orders and delivered a wide range of products and services around the world and has also made good progress with the potential 20 year Middle East border security project announced in February 2016 for the provision of equipment, training and ongoing maintenance of security screening checkpoints. The company successfully carried out trials and demonstrations in relation to this project in May 2016 and due to the substantial potential value of this contract and its own specific complexities, is now discussing funding and deployment options with the authorities and banks with UKEF support” “The worldwide reach of the Division is emphasised by a number of recent contracts. way of example, during the first 6 months of 2016, the Technology Division has supplied various products and services to UK prisons, security equipment to various airports in the UK and overseas, explosive detection equipment to a UN entity in Somalia, supplied screening equipment to the South African Police, as well as securing contracts with numerous other clients as far afield as Afghanistan, Canada, China, Germany, Greece, Indonesia, Kenya, Malaysia, Nigeria, Qatar, Romania, Singapore, Tanzania, Turkey, the UAE and the USA.”“The Division has a number of other advanced solution sales prospects underway …” (usual caveats)“2016 has seen a complete overhaul and upgrade of all our Group websites and as part of that process a new and comprehensive Westminster International website has been developed. This was launched in June following a nine month build programme and is optimised for mobile usage, improved SEO functionality has led to improved traffic and enquiries since commissioning.”“The business continues to provide essential technical resources to the Managed Services Division, again highlighting the vertical integration that exists in our business.”21st December 2016 RNS: Trading Statement“Over the last few months the Company has won a number of UK based maintenance contracts for x-ray screening equipment provided by a major supplier to Westminster. The additional recurring sales value is over £100,000; this is expected to increase as further contracts are secured. Customers include UK airport service providers and government bodies and enquiry levels are increasing. These maintenance contracts bolster Westminster’s growing recurring revenue base and are being delivered by the Company’s existing team of trained and qualified engineers. In addition, Westminster has recently secured a number of security and training contracts in airports around the world and Westminster’s growing reputation as a subject matter expert in airport security will aid awareness of its managed services airport security operations with potential customers”23rd February 17 RNS: Trading Update“The Groups Technology Division has made a strong start to the year and continues to make a positive contribution to the Group with increasing margins. In the trading update in December 2016 the company announced it had secured over £100,000 of annual recurring revenue maintenance contracts and further recurring
asilad
29 Dec 2017
Re: RNS lodged? Disorder. I hope you got in on this one. I expect there is a lot more to come from this on just the one ME contract alone, never mind all of the others they have in the pipeline. QFI, in spite of todays wobble will respond well in the NY and surge past it's past 14p levels. Looking for over a 100p here.Caspian, although for now has not attained a new trading level, is on the verge of delivering across at least two of it's deep wells, likely a third too and spudding another shortly. Also expect this to have a steep rise in 2018 to well over 30p.Can't afford to wait any longer for 70 on PXOG so have exited with a small profit. Turkeys are too big elsewhere.Apologies to all for the 'off topic' pieces on here.Happy New Year to all.
onewayticket
29 Dec 2017
Re: Technology Division More insight to come on this Division but here is a little taster for you on a Border Project that was specifically mentioned under the Technology Division update in the 29th September RNS. Note this is Border contract as distinct from the present ME airport contract that is presently enthusing."The company has secured orders and delivered a wide range of products and services around the world and has also mad good progress with the potential 20 year Middle east Border Security project announced in February 2016 for the provision of equipment, training and ongoing maintenance of security screening checkpoints. The company successfully carried out trials and demonstrations in relation top this project in May 2016 and due to the substantial potential value of this project and its own specific complexities, is now discussing funding and deployment options with the authorities and banks with UKEF support."Not much has been heard since - although we know from previous updates that all MOU's are seemingly active. We also know how long it has taken for the present ME Airport deal to get to where it is. Note also here the mention of funding using banks with UKEF (United Kingdom Export Finance Support.Own due diligence.
onewayticket
29 Dec 2017
Re: Gross Margins at WSG Damp Seaweed,Its clear that you are either not clear about the USP's of what this company has to offer or are trying to trade it and probably not too successfully against what is a rising trend. I am merely stating it how it is reported in the updates. All companies require investment to build a sustainable business. G4S and the other big players will have done similar. I think many will know that the biggest blight on this companies net profit has been an excursion into Ferry operations that required successive investment costs and did not perform as expected. It shouldn't any longer be a drain on finances though as its been farmed out to another operator as of Sept 17. The larger of the ferries the Sierra Queen is presently up for sale so should recoup some outlay monies back. The main USP's are contained in this post from Wednesday.[link] I shall hopefully get a chance tonight or tomorrow to cover the last 15 months of the Technology Division to just about compete the insight on the company.Own due diligence
Damp Seaweed
29 Dec 2017
Re: Gross Margins at WSG It is Net Profit, or Net Earnings that rewards the Investors.I know very little about the USP of this company but;High Gross margin businesses usually have high fixed costs or need substantial investment in assets.I'm sure winning this contract is very good news for shareholders, but they are not about to be richly rewarded with a rapid payback without absorbing the diluting effect of the need for further investment.
onewayticket
28 Dec 2017
Gross Margins at WSG For a company looking like its just about to land the real deal of a transformational contract amounting to €24M per annum and with incremental businesses a scan of the last 15 months RNS's for their Margin threw up some good reading.From the June 16th RNS (Interim Results for 6 months to 30/06/16"Average gross margin improved to 74% (2015: 51%) due to favourable business mix;"22nd Sept 17 RNS: Interim Results for the 6 months to 30th June 2017"The Group generated a gross profit of £1.7m (H1 2016: £1.5m) which equates to a gross margin of 59% (H1 2016: 73%). This gross margin decrease is largely due to a negative gross profit from the Ferry operations... (Ferry business now Sea Coach Express thankfully)Own due diligence
Noville2
28 Dec 2017
Re: Technology Division You seem to be doing all the work for us... Good read.
onewayticket
28 Dec 2017
Re: Technology Division [link] due diligence
onewayticket
28 Dec 2017
Technology Division As stated I shall have a look at the mentions of the Technology Division in the RNS's when I can make some time.In the meantime a short trawl through the Westminster Group news pages will give you a flavour of what this entails from X-Ray scanners to security fencing and Vehicle checkpoint screening equipment etc. Its not been updated so regularly but it lets you see.[link] due diligence
onewayticket
28 Dec 2017
Lungi Airport - State of Play Lungi AirportWhilst I sat and summarised the last 15 months worth of RNS’s on the Memorandums of Understanding and on the Middle East contract I also made mention of Lungi Airport in Sierra Leone which services the capital Freetown and beyond and whereby Westminster Group undertakes Airport Security and operates Cargo Operations. Just ahead of any Operational Update in January (which we know is coming) here is a chronology of paraphrased RNS information and Internet links on the Airport operations which I hope proves helpful in gaining an understanding of what business Westminster Group is engaged in. This airport was hit badly by an Ebola epidemic prior to Sept 16 but has been recovering and with an increasing number of Airlines flying or set to fly into Lungi airport in Sierra Leone.29th September 16 RNS.• Cargo screening commenced in West Africa“I am pleased to report that despite the challenges of the last 2 years, our business is facing unprecedented growth prospects, particularly with our airport security operations. Airport traffic in West Africa is returning following the end of the Ebola crisis and whilst not yet back to pre-Ebola levels, is showing encouraging signs with the addition of cargo screening operations having commenced…”23rd February 17 RNS“The Groups Managed Services Division continues to make progress on a number of fronts. The Companies West African airport operations are seeing steady growth in embarking passenger numbers as the recovery from the Ebola Crisis continues. In January 2017 (a seasonally strong month), the airport recorded its second highetsnumber of embarking passengers since the company commenced operations there in 2012, showing a 40% increase on January 2016 and following on from a 35% increase year on year in December 2016 m(albeit December 2015 and January 2016 were still affected by the tail end of Ebola….”22nd September 17 RNS• Strong recovery in West Africa passenger numbers continues, several new airlines commencing services including Turkish Airlines due to commence in Q4 2017.“Our airport security business in West Africa is performing well”“Our airport security operations in West Africa performed well in the first half of the year as passenger numbers continue to rise and several new airlines commence services in Q4 2017. This service is likely to bring in passengers from new regions and bodes well for future growth.“Revenues from our airport security operations increased by 41% to £1.8m (H1 2016: £1.3M) with embarking passenger numbers growing by 18%..”“Passenger numbers continue to grow across all airlines with the exception of Air France who have reduced Flight numbers with their passengers being picked up by their code-share airline, KLM. Fly Mid Africa launched a new service in July 2017. Air Peace will be commencing flights to Nigeria from September 2017 and Turkish Airlines are planning a new route from Istanbul to Sierra leone later this year, following a successful trial at the end of August. Early September airlifting Hajj pilgrims to the Kingdom of Saui Arabia” (February 2018 – see link below)Some helpful links.[link] look at the Technology Division next when I have time.Own due diligence
HUCKLEBERRY TIM
28 Dec 2017
Re: This is a must BUY All,I am cashing out a chunk of my investment in this share. A profit is not a profit until it hits your bank. Nothing has materially changed - we are still in the final stages of negotiations but each time the news gets announced, it goes back up then drifts down. I will dip in and out again over the next few months skimming off the top - hopefully. We hit 20's through the autumn then it popped back down to 9 on the 23rd (approximates). All contracts in the middle east are always at the whim of the benevolent (ahem) ruler so it is not a done deal and in my experience, just at the point of signing is when the negotiated price is suddenly renegotiated..... In short - I think this is a long term winner but always take a bit of profit when it is offered. I am more cautious on my one pound/two pound estimates..... I would use the pound sign but I bought this computer in the middle east and I cannot figure out where it is.
onewayticket
27 Dec 2017
Re: This is a must BUY Also note the credentials of the Chief Financial Officer."Martin Boden is a Chartered Accountant with considerable experience with high growth businesses. He has worked with both AIM and FTSE 250 listed companies as well as Private Equity owned organisations, having most recently been CFO at Genus plc and JDR, a privately owned energy services business. Martin has worked closely with both UKTI and UK Export Finance on overseas projects."The Contract I suspect will arrive first and have to be announced (with a further rise) then I would expect any finance arrangements to arrive about a month later. Hence why I think it will be at a premium but thats only my own viewpoint.Own due diligence
onewayticket
27 Dec 2017
Re: This is a must BUY FrankersI suspect any fundraising will be at a significant premium to present levels and that there may be an element of HMG backing and possibly a combination of bank finance and a placing. Note also what it says in the below post re the 2nd German company.Own due diligence
Frankers70
27 Dec 2017
Re: This is a must BUY It's a good point Seaweed. There could well be a 15p - 20p placing to raise funds and it may well be purchasing more on the drawback rather than on current euphoria. Our club have 11,000 shares at circa 14p so sitting pretty at the mo. As ever GLA holding.
onewayticket
27 Dec 2017
It might just be worth parking up and adding Evening EveryoneI have taken the time and trouble over a couple of hours during the Festive break to look back over the last 15 months worth of updates and Regulatory News releases particularly in respect of the Managed Services Division of Westminster Group as it’s the area of business where the Middle East contract previously mentioned is always referred to. What I have then done is then summarise key mentions and the key developments so that you can relatively quickly make reference yourselves to arrive at your own decision.29th September 16 RNS:Keypoints (Operational)• Increasing momentum in airport security business with 3 New Memorandum of Understandings (MOU’s) signed with governments and airport authorities during the period making a total of 7 signed MOU’s in different regions of the world now in progress, all of which remain live opportunities.Of these, one in East Africa was signed some time ago, 3 were signed in 2015 and so far in 2016 3 more MOU’s have been signed, including a substantial project opportunity within the Middle East (Total 7)• Received letter of Intent from Middle East Civil Aviation Authority for the provision of long-term (15+ years) airport security services at a “significant international airport” with potential to expand the Groups airport security business annual revenues to over £35m with significant future growth potential …• Further long term multi-million GBP significant incremental business relating to the above Middle East airport project opportunity under negotiation …December 2016 RNS: This one talked about Post-Contract expenditure etc.“In September 2016 the Group provided its interim results and an update on its business activities. The momentum shown in H1 has continued and during H2 considerable progress has been made on a number of fronts.… In September the Group provided an update on its various airport opportunities under previously announced MOU’s, ALL OF WHICH REMAIN LIVE and are being progressed…(It then went on to update on the ME opportunity including mention of dialogue with UK Govt export departments and at High level relevant National Government level) It then later stated:“Westminster continues to enjoy significant high level governmental support for its various project opportunities around the world and has recently received direct introductions in respect of a number of potential aviation security opportunities in the Middle East.”February 2017 RNS: Ancilliary Project + Border Project mentioned + 2 New German Companies“Westminster’s reputation and expertise in the field of aviation security continues to grow, evidenced by both the number of new training and support contracts secured for airports around the world and our growing pipeline of long-term potential airport projects, which includes some very large opportunities. In September 2016, the Company provided an update on its various airport opportunities under previously announced MOU’s, ALL OF WHICH REMAIN LIVE and with certain opportunities having made good progress in recent weeks.A key focus of the business in recent months has been developing its SEVERAL large scale long term potential project opportunities within the Middle East, including the previously announced major airport project for which the company received a letter of Intent during may 2016 and which is expected to have annual revenues in excess of £35M – TOGETHER WITH AN ANCILLIARY LARGE SCALE PROJECT FOR THE SAME CLIENT AS WELL AS A SIGNIFICANT BORDER PROJECT IN THE SAME REGION“As part of its growth strategy, and to facilitate some of its major project opportunities, Westminster has now established 2 new European subsidiaries strategically located in Germany; Westminster Group GmbH, a 100% subsidiary of Westminster Group Plc and Westminster Sicherheit GmbH which has a 15% minority holding by strategic investors who will help provide financial and structural support for some of the
