StockMarketWire.com - Westminster (WSG) experienced an encouraging start to 2016 with the end of the Ebola crisis in West Africa, ongoing recovery in revenues and increasing interest in Westminster's long-term airport security operations.

Trading in the first six months of 2016 shows a continuing improvement in performance in both divisions

The Managed Services division also recorded a record financial performance in the first half of the year with further improvement expected in H2 as passenger numbers continue to recover to pre-Ebola levels (currently c85%).

This improving performance in both divisions, combined with the lower cost base of the group, allowed the group to reach close to EBITDA breakeven for the first half of 2016.

This compares to a loss on a similar basis of approximately £0.9m for the first half of 2015, although this clearly reflected the worst effects of the Ebola crisis.

The group's cash position has been strengthened by the fundraising announced on 3 June and cash collection levels remain healthy.

JOINT VENTURES

Under its strategy for dealing with the growing prospect list of major long term airport security projects in various parts of the world, the company is looking to enter strategic joint venture (JV) arrangements in certain countries and for certain projects whereby the JV partner will bring added value through financing support for the project, providing a regional presence, language and cultural enhancements.

One such JV arrangement is already at an advanced stage of discussion and further announcements in this respect will be made in due course.

OUTLOOK

With the end of the Ebola crisis in West Africa, a recovery of revenues and the improved performance of both Divisions we have delivered a significantly improved financial performance for the first six months of 2016.

This, together with the long awaited commencement of the ferry services now in sight, the business changes and enhancements we are undertaking to strengthen the business, and the progress we are making in our core long term managed services business, not least the recently signed Letter of Intent for a long term major airport contract, means we are both positive and excited by our growth prospects in the months and years ahead.

Whilst there is never any certainty as to timing or final outcome of the various opportunities we are pursuing we believe the size, number and geographical spread of the various opportunities we are developing provide significant potential for growth.




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