11 April 2024
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION
NO. 596/2014 ("MAR") WHICH IS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN
Westminster Group Plc
('Westminster', the 'Group' or the
'Company')
Completion of Signing of 10+
Year, Multi-Million £ Managed Services Contract covering 5 Airports
in the DRC
Westminster Group Plc (AIM:
WSG), a leading supplier of managed services and technology-based
security solutions worldwide, is pleased to announce that the
ratification process for the 10+ year contract, initially signed in
June 2021 for security services to five airports in
the Democratic Republic of the
Congo ('DRC'), Central Africa, has been completed and
contracts signed.
Contracts were officially signed
today during the UK - DRC Trade and Investment Mission, at a formal
ceremony in Kinshasa by board representatives of both Westminster
and the airport authority, La Regie Des Voies Aeriennes ('RVA'), in
the presence of various government officials and dignitaries
including Lord Popat, the UK Prime
Minister's Trade Envoy; John Humphrey, His
Majesty's Trade Commissioner for Africa; HE Alyson King OBE, HM
Ambassador to the DRC; and HE Ndolamb Ngokwey, Ambassador of the
DRC to the United Kingdom.
The contract, which is for an
initial period of 10 years, with a five-year renewal thereafter, is
to provide comprehensive ground security operations, initially at
four international airports and one national airport in the
DRC.
Westminster will provide all the
investment and expertise required to upgrade security at the
airports. This not only includes the provision of advanced
detection, surveillance, and screening equipment, but also the
maintenance, training and various support services required to
ensure DRC's airport security is run to the highest international
standards. This enhancement in airport security will assist the
authorities in DRC in developing and maintaining world-class
airport security services, opening up the potential for growth in
air traffic by attracting new international carriers and commercial
enterprises to the region.
As part of the programme,
Westminster will also be establishing an aviation security training
academy to provide certified training to international standards
for all aviation security ('AVSEC') staff within the country,
ensuring that DRC's AVSEC staff are amongst the best trained,
motivated, and valued in the entire region.
The contract is based on
Westminster's managed services model successfully deployed
elsewhere in Africa. Revenues will be driven by embarking passenger
numbers using the airports and funded by a per passenger fee,
denominated in US$, collected through the ticketing system and
payable directly to Westminster by the airlines or a suitable
collection agency such as the International Air Transport
Association ('IATA'). Based on current international embarking
passenger levels, the contract is expected to generate revenues of
circa US$10m in the first 12 months of operation. In addition,
there is an opportunity under the contract for further revenues, in
due course, from domestic traffic and cargo screening
operations.
The contract includes a 90-day
transition period to allow for operational planning and recruitment
processes to be completed. Operations and revenues are therefore
expected to formally commence in July 2024, although Westminster
will immediately deploy its transition team to commence planning,
recruitment, training, procurement and logistics.
Initial funding for the project will
be from Westminster's own resources and the Company has engaged
with specialist corporate advisors to secure required funding
beyond that stage, with several options under consideration
focussed on project-based debt capital.
Commenting on the Contract Award, Westminster's Chief
Executive Officer, Peter Fowler, said:
"I am delighted to be able to
announce this important new contract during the UK - DRC Trade and
Investment Mission.
"The Democratic Republic of the
Congo is a key addition to our international aviation security
services, and we believe the country has exciting growth potential.
With a surface area equivalent to that of Western Europe it is, by
area, the largest country in sub-Saharan Africa, the second largest
in all of Africa, and the 11th-largest in the world. It is also the
most-populous Francophone country in the world. Air travel is
therefore an important and a necessary requirement within this vast
country. DRC is extremely rich in natural resources and has the
potential for sizeable economic growth. I look forward to
Westminster having a long-term presence in the country and in
playing our part in the successful growth and security of the
country's numerous airports."
Commenting on the development, RVA Chairman, Prof. Tryphon
Kin-Kiey Mulumba, said:
"The Government of the DRC and the
RVA are committed to creating world-class airport operations within
the country, which will create economic benefits for the country
and its citizens.
"We have been impressed by the
professionalism and expertise shown by Westminster and we see
partnerships like this with leading global organisations, as a key
part of this strategy."
Lord
Popat, the UK Prime Minister's Trade Envoy to the Democratic
Republic of Congo, who is leading the UK Trade & Investment
Mission 10th-11th April in Kinshasa, added:
"Britain is keen to develop and grow
bilateral trade and relationships between the UK and the Democratic
Republic of Congo and I am delighted we have been able to announce
an important and long-term contract award between British based
Westminster Group and the Regie des Voies Aeriennes during the UK
Trade & Investment Mission event. It is a clear indication of
the business opportunities that exist between our two
nations."
For further information please
contact:
Westminster Group Plc
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Media enquiries via Walbrook
PR
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Rt. Hon. Sir Tony Baldry -
Chairman
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Peter Fowler - Chief Executive
Officer
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Mark Hughes - Chief Financial
Officer
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Strand Hanson Limited (Financial & Nominated
Adviser)
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James Harris
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020 7409 3494
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Ritchie Balmer
Richard Johnson
Zeus
Capital Limited (Broker)
Louisa Waddell
Simon Johnson
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020 3829 5000
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Walbrook (Investor Relations)
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Tom Cooper
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020 7933 8780
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Joe Walker
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Nick Rome
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Westminster@walbrookpr.com
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Notes:
Westminster Group plc is a
specialist security and services group operating worldwide via an
extensive international network of agents and offices in over 50
countries.
Westminster's principal activity is
the design, supply and ongoing support of advanced technology
security solutions, encompassing a wide range of surveillance,
detection (including Fever 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 manpower, consultancy and training
services. The majority of its customer base, by value, comprises
governments and government agencies, non-governmental organisations
(NGO's) and blue-chip commercial organisations.
The Westminster Group Foundation is
part of the Group's Corporate Social Responsibility
activities. www.wg-foundation.org
The Foundation's goal is to support
the communities in which the Group operates by working with local
partners and other established charities to provide goods or
services for the relief of poverty and the advancement of education
and healthcare particularly in the developing world.
The Westminster Group Foundation is a
Charitable Incorporated Organisation, CIO, registered with the
Charities Commission number 1158653.