22nd May 2019 14:39
LONDON (Alliance News) - Westminster Group PLC said Wednesday it made "strong progress" in 2018 and expects to report a sharp rise in revenue.
The security services firm expects to say its 2018 revenue rose 24% to GBP6.7 million.
The revenue increase is expected to result in a "significantly improved" earnings before interest, tax, depreciation and amortization loss of GBP378,000 compared to GBP1.2 million the year before.
"These results were achieved despite the delay in recognising turnover relating to the Middle East screening project related to shipping delays over the holiday period which, upon review, has resulted in a higher level of turnover becoming recognised in the first quarter of 2019 than was originally expected at the time of the company's trading update in January," the company said.
Westminster Group added: "The company's Ebitda result is still subject to the collection of an old and sizeable long-term debt, previously written off, referred to in the trading update, which is now potentially recoverable and being actively pursued. If received before the results, which is less likely now given the timescale, it would create a positive 2018 Ebitda; however if it is collected post the results date it will be recognised in the 2019 results."
Westminster Group expects to release its 2018 annual results this Friday.
The company also said it has agreed with noteholders to extend the maturity date of its convertible secured loan note to the end of June 2020. The GBP4 million facility was initially issued in June 2013.
The current outstanding principal stands at GBP2.2 million.
"Whilst the company plans to repay the loan note at the earliest opportunity, the extension gives the company the flexibility for a strategic and planned paydown of the loan note, at a time of its choosing, to avoid adversely affecting the group's business activities," the company said.
Under the terms of the extension, the conversion price on any unredeemed or unconverted loan notes will be 15 pence per share until September 2019, 12.5p per share from October 1 until December 2019, and 10p per share from January 2020 until the new maturity date in June 2020. The annual coupon payable on any unredeemed or unconverted loan note amount will be 15% from April 2019 until June 2020.
Shares in Westminster Group were down 0.5% Wednesday at 6.86 pence each.
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