Westminster Group Secures 15+ Year, Multi-Million £ Airport Security Contract in Gabon
Why we think this is good
This is a significant long-term contract win for Westminster Group, which is expected to generate substantial revenues and improve the company's financial position. The contract is based on the company's proven managed services model, and the funding secured through the subscription reduces execution risk. While there are some uncertainties around the specific financial details and execution in a new market, the overall opportunity appears positive for the company.
Key Points
- 15+ year contract to provide security services at 4 airports in Gabon
- Expected to generate revenues of around $5.5m USD in the first 12 months
- Westminster to invest in upgrading security infrastructure at the airports
- Revenues to be driven by per-passenger fee collected through ticketing system
- £1.2m subscription secured from Pantheon A Family Office to fund working capital
Summary
Westminster Group PLC has signed a 15+ year contract to provide comprehensive security services at four airports in Gabon, Africa. The contract is expected to generate revenues of around $5.5m USD in the first 12 months of operation based on current passenger numbers. The company will invest in upgrading the security infrastructure at the airports, including advanced detection, surveillance, and screening equipment, as well as providing maintenance, training, and support services. The contract is based on Westminster's proven managed services model, with revenues driven by a per-passenger fee collected through the ticketing system. To fund the working capital requirements for this project, the company has secured a £1.2m subscription from Pantheon A Family Office, which will result in Pantheon holding a 27.79% stake in the enlarged share capital.