25 Yr Managed Services MOU - $300m Rev Potential

RNS Number : 7181O

Westminster Group PLC

11 August 2014

 



11 August 2014

Westminster Group Plc:

25 Year Managed Services MoU with $300m Revenue Potential

Ferry Transfer Service - Africa

Westminster Group Plc ('Westminster' or the 'Group'), the AIM listed supplier of system solutions and products to the security-led, defence, fire protection and safety markets worldwide, is pleased to announce that, in conjunction with a 50/50 joint venture partner, CWind Ltd ("CWind"), an experienced UK sea ferry operator, it has signed a Memorandum of Understanding ("MoU") with a government in Africa as a prelude to the signing of an agreement  for the long term provision of a vital sea ferry transfer service which is expected to be operational from the end of 2014.

The service, which will be run under the joint venture name of Sovereign Ferries, will provide a high quality, professional and safe ferry service to transport passengers between key national facilities and the main conurbations and in addition, in due course, will be expanded to include a water taxi service around the coast to neighbouring territories, assisting the country concerned to expand its tourist potential by providing safe transit to and from potential resort areas.

Westminster's joint venture partners, CWind and its sister company CTruk Ltd are manufacturers and experienced operators of high quality rugged ferries which can operate in all weather conditions and are ideal for this application. It is anticipated that the service will provide a premium service akin to a 'business class' level of transit service for all passengers and is expected to be in high demand.

The initial contract will be for a period of up to 25 years. Based on current market conditions and forecasted economic growth, the venture's revenues are expected to be in the region of $300m over the period, with there being significant incremental revenue potential from further routes and services which we have identified. We expect this service to share many of the strong financial dynamics which are already being delivered by our existing managed services business.

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

"I have previously reported that we would be expanding our Managed Services business of long term, recurring revenue contracts into other associated services and I am delighted to announce this latest development which is an example of such services.

"We have been in discussions with the government concerned for some time and the signing of the MoU is a major step forward. Due to the demand for our services, we anticipate this to be a fast track process with all licence and formalities completed and the service expected to commence from the end of 2014.

"Our joint venture partners are both very experienced and professional in the provision of ferry boats and services and together with Westminster, who will be providing in-country organisation, infrastructure and management, I believe we will be providing an essential and highly regarded service which will assist the country's economic growth and development in tourism."   

For further information please contact:

Westminster Group plc.	Tel: [phone]
Peter Fowler (Chief Executive)
Ian Selby (Chief Financial Officer)
S. P. Angel Corporate Finance LLP (NOMAD and 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, 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. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations.  For further information please visit www.wsg-corporate.com  

 

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