StockMarketWire.com - Westminster Group said its directors continue to review options for further cost reductions. Gross margins have slightly improved compared to last year and operating results are expected to be materially better than 2014.

"Revenues are expected to be approximately GBP3.4m," the company said in a statement.

"Technology Division sales were higher overall due to larger product sales in the first quarter of the year whilst Managed Services revenues were lower than 2014 due to the full year being impacted by Ebola.

"Embarking passenger numbers at the West African airport steadily increased during the year (from a low point of c30% of normal volumes) and the airport has shown a positive contribution since February 2015.

"The loss of revenues in 2015 compared to the pre-Ebola period was in the region of £1.4m for the year. This comparison excludes the organic growth the airport was experiencing pre-Ebola.

"Cost reductions were made during the year across the Group and non-depreciation ongoing costs have now been reduced by more than 25% since the pre-Ebola period."

The investment in setting up the 21-year Sierra Leone Ferry service contract continued during the year. Following sea trials the vessel is close to being operational.

"The delays in commencement of services, originally envisaged for July 2015, have cost the Company though significant lost revenues. To provide context, the Company believes that the annual addressable market (before Ebola) to be over $9m, so this has materially impacted the business.

"Whilst these delays are frustrating, the economics of the operation should allow it to generate cash on a relatively small market share when the service commences and this should improve with the recovery from Ebola. The Board looks forward to providing further updates on the commencement of services."






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