25th May 2018 11:25
LONDON (Alliance News) - Westminster Group PLC said Friday annual revenue increased 22% on the back of a "transformational" agreement with an Iranian airport.
The security services firm, however, recorded a sharply widened pretax loss for 2017 of GBP6.1 million compared with a GBP2.0 million pretax loss the year before due to increased administrative expenses, which totaled GBP8.7 million versus GBP4.5 million.
Revenue for the year stood at GBP5.4 million versus GBP4.4 million.
The company's Managed Services division recorded 29% rise in revenue to GBP3.6 million from GBP2.8 million - owing to the "end of the Ebola period" in west Africa and the resumption of passenger volumes. Technology division revenue grew to GBP1.8 million from GBP1.6 million.
Annual adjusted loss before interest, taxes, depreciation and amortisation for 2017 amounted to GBP1.2 million, versus a profit of GBP25,000 in 2016.
Westminster said its business is in a "better position" that it has been in for some time despite the "extremely frustrating" delay in its Iranian airport contract due to threat of sanctions on the country by the US. Westminster expects the Iranian contract to contribute EUR24 million in revenue annually.
Westminster is "hopeful" the EU will put in place measures to protect EU companies allowing the project to commence.
The company believes it has the opportunity to "achieve unprecedented growth" in the coming months and years and "remain committed" to reaching that "potential".
Chief Executive Peter Fowler said: "I am pleased to report the group has made progress during 2017. Revenues rose strongly in both our Managed Services and Technology divisions and the loss making Sovereign Ferries operation was discontinued in September 2017."
"Our business is both stronger financially and in a better position than it has been for some time in terms of management, structure, revenues and prospects. Our Managed Services division is making progress on several fronts and our Technology division continues to deliver a wide range of products and solutions around the world. Over the next few months and years we have an opportunity to achieve unprecedented growth from the prospects we are pursuing. The Iranian airport opportunity and other managed services contracts could be transformational for the group and the board remains committed to delivering on this potential."
Shares in Westminster were up 5.9% Friday morning at 13.50 pence each.
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Westminster Group