30th Sep 2015 14:22
LONDON (Alliance News) - Westminster Group PLC Wednesday said revenue from its recovering airport business and its soon to be launched ferry service would bring it to a monthly cash flow positive position in the next year, provided that airport traffic continues to recover at its current pace as the Ebola crisis eases.
Westminster provides managed services and security technology products for governments and government agencies, amongst other organisations.
For the half year to end-June the company reported a pretax loss of GBP1.0 million, widened slightly from a pretax loss of GBP939,000 a year before, as revenue fell to GBP1.9 million from GBP2.2 million, but this was offset by lower administrative costs.
The company attributed its revenue decline to lower passenger volumes, and therefore reduced security fees as a result of the Ebola crisis in West Africa. This offset an improved performance from its Technology division.
"We are looking forward to launching our ferry service and maximising the mutual benefit that this new transport link and the established airport traffic will achieve when working in tandem. The prop shaft is now repaired and will be transported back in-country on the first available governmental flight which is scheduled to leave on 6 October," said Chief Executive Officer Peter Fowler in a statement.
"Our internal calculations demonstrate that the revenues from these two operations alone will allow the Group to operate on a monthly cash flow positive basis within the next 12 months presuming the recovery in airport traffic continues at this pace to its pre Ebola levels," Fowler added.
Shares in Westminster were up 4.3% at 14.60 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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