New Business Development Partner & Issue of Equity

RNS Number : 9759C

Westminster Group PLC

24 March 2014

 



24 March 2014

'Managed Services Division' Business Development Partner

and New Strategic Investor

Issue of Shares

Westminster Group Plc ('Westminster', 'the Company' or 'the Group'), the AIM listed supplier of system solutions and products to the security, defence, fire protection and safety markets worldwide, is pleased to announce that on 21 March 2014 it issued and allotted 380,619 new ordinary shares of 10p each at a price of 77p per share, to a new strategic investor (the 'Investor') who has significant interests in emerging markets, raising £300,000.

This Investor is active in certain of the Company's target high growth geographical markets. They are focussed on infrastructure and natural resources projects in these regions and can assist the Company in the development of long term regular business from the delivery of security contracts for the Company's Managed Services Division.

The Company has also raised gross proceeds of £150,150 via a draw down on its Equity Financing Facility ("EFF") with Darwin Strategic Limited. This was achieved by the issue of 195,000 new ordinary shares of 10p each being issued at a price of 77p per share.

All of the above new ordinary shares rank pari passu in all respects with existing ordinary shares of 10p each in Westminster.

The proceeds of the issues referred to above will be used for working capital purposes to fund project expansion and provide balance sheet strength.

Appointment of Business Development Partner

In line with our expansion strategy and the alignment with strategic partners, the Investor has been appointed as a Business Development Partner to the Group and has been granted 0.5m options over 10p ordinary shares in Westminster ("Options").  The Options have a strike price of 85p each and vest on delivery of certain revenue based milestones as set out below.

The Options vest on achievement of incremental recurring revenue performance milestones arising from business in our Managed Services Division. 0.3m Options vest on achievement of £5m of new Managed Services revenues directly generated by the Business Development Partner within 3 years and a further 0.2m vesting on delivery of an aggregate of £8m new recurring revenue directly generated by them within the same period. The Options have a life of 8 years from date of grant, but will lapse after three years if the above revenue criteria are not achieved. A condition of the agreement is that revenue is defined in accordance with the Group's standard revenue recognition policies and that it has also been paid in full. Westminster will be involved at all stages in client negotiations and product specifications and will have ultimate sanction over contractual terms.

Commenting on the strategic investment and appointment of the Investor as a Business Development Partner, Peter Fowler, Chief Executive of Westminster Group, said:

"Westminster's agent and business development partner network is a unique feature within the industry.  Where we have a combination of a business development partner who has additionally invested in our Group, we have a very powerful combination.

"The Managed Services Division has attracted significant client interest and is working on a healthy and growing prospect pipeline around the world including the East African airport project which is still very much an active and advanced opportunity.  The strategic investor/partner mentioned above is well known to us and we are excited by the potential project opportunities they can bring to our group. The revenue profile on these projects is attractive and supports a long term growth opportunity for the Group and its shareholders."

Results and Annual General Meeting

The audited results for the year ended 31 December 2013 will be released at the end of May and the Annual General Meeting will be held at the Company's Banbury office at 10.30am on 25 June 2014.

Total Voting Rights

Application will be made to the London Stock Exchange for 575,619 new shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the Shares will commence on 27 March 2014 ("Admission").

Following Admission, the Company's enlarged issued share capital will comprise of 47,534,850 ordinary shares with voting rights. This figure of 47,534,850 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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 + 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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