30th Sep 2014 09:23
LONDON (Alliance News) - Security and defence equipment provider Westminster Group PLC Tuesday said its losses widened in the first half, despite winning a number of profitable contracts.
AIM-listed Westminster Group posted a pretax loss of GBP939,000 for the six months to June 30, compared with a GBP725,000 loss a year earlier, as revenue fell to GBP2.2 million from GBP4.9 million.
The company has two main divisions - Managed Services and Technology.
Gross margin improved to 58% from 39% a year earlier, due to due to the greater mix of high margin Managed Services revenues.
The company has been struggling in recent times and its full-year results where hit by the sale of its UK operations in March 2013, as it refocused its business towards international markets.
However on Tuesday, the group said its ongoing businesses have been beset by a number of problems during 2014.
Westminster Group said during the period its Managed Services division recorded revenue of GBP1.5 million compared with GBP1.6 million a year earlier, due to exchange rate movements. At constant exchange rates the airport Managed Services division grew to USD2.5 million from USD2.2 million based on increasing passenger volumes.
Meanwhile, Technology Division booked revenue in the previous year from the sale of a scanner system for USD3.2 million. An order for a similar system worth USD2.6 million was received in April 2014, but due to client delays this is now expected to show as revenue in 2015. Westminster didn't provide the full revenue figures for the Technology Division.
Westminster Group also Tuesday said it has signed a new 10-year franchise agreement in Mexico worth GBP1.9 million over the period in franchise fees alone.
Under the agreement, Westminster has licensed the use of the Westminster brand under the name of Westminster Mexico SA de CV (WM).
The franchise agreement will allow WM to operate as Westminster's exclusive agent in Mexico promoting all Westminster products and solutions within the country and sourcing all products and solutions exclusively through Westminster.
Looking ahead, the company said it continues to pursue large-scale managed services contracts.
"Our pipeline is growing and opportunities continue to progress and, whilst dealing with governmental processes can be time consuming and frustrating at times, I am confident the opportunities these potential contacts offer, being long term with excellent financial dynamics, are more than worth the effort," Chief Executive Peter Fowler said in a statement.
Westminster Group shares were quoted up 2.2% at 38.85 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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