4th Mar 2015 09:16
LONDON (Alliance News) - Security services company Westminster Group PLC on Wednesday said it has agreed the acquisition of a vessel under the West African ferry services contract it signed in November, saying it will buy a ferry which is larger and more expensive than initially planned.
Westminster said it has decided to buy a vessel which is more expensive and larger than initially planned after conducting sea trials and surveys prior to committing to the deal. The company said its trials indicated passenger volumes will be in excess of the initial contract scope.
The company said the initial customer estimates had been too conservative due to the concerns at the time over the Ebola crisis and that expressions of interest from local businesses, leisure facilities and hotels indicate the numbers will be higher than first estimated.
The vessel is now being made ready for shipment to West Africa and is expected to arrive in April.
"A successful search for suitable vessels has enabled us to secure a ferry larger than initially planned. This extends the scope of the contract and allows for greater use to be made of the existing infrastructure earlier than anticipated. This is an excellent flag ship vessel for our first managed services ferry project and one which I am confident will prove very convincing for other interested parties who are currently involved in discussions for similar projects," said Westminster Chief Executive Peter Fowler.
"The Ebola situation has markedly improved which, should this trend continue, will in due course lead to airlines reinstating their services to the region. With the future resumption of traditional passenger numbers passing through the airport and the volumes of local traffic, we anticipate that there will be significant demand for the service," Fowler added.
Westminster shares were down 5.4% to 28.37 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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