StockMarketWire.com - Security solutions provider Westminster Group said it expected to post positive earnings in 2018, though it had suspended work in Iran following President Trump's decision to pull out of an historic nuclear accord.

Trading for the first five months of the current financial year was in line with the board's expectations, chief executive Peter Fowler said in speech notes for the company annual general meeting.

In Iran, the company had earlier this year signed a 15-year contract for equipment and services at one of the country's 60-plus airports.

The contract, with initial annual revenues in excess of €24m, was the culmination of over two years of complex and intensive planning, Fowler said.

'Whilst none of Westminster's proposed equipment or services is subject to any existing or proposed sanctions, the US action has implications for finance and banking and has created uncertainty in the international business community,' he added.

'Given the initial uncertainty, and following discussions with our customer and commercial partners, the board made the decision to place the project on hold whilst it seeks clarification on the impact of the US withdrawal from the [agreement].'

Westminster said it had also placed a smaller contract in Iran on hold worth €2.65m, which it said it hoped would be a temporary decision.

'Whilst some multi-national corporations with large exposure to and trade links with the US have announced a withdrawal from Iranian activities we are encouraged that others such as Renault have publicly stated they are committed to continuing business with Iran.'

'Whilst our client is keen to commence the project as soon as practically possible they are cognisant of and understand our position and are actively working with us to explore various solutions to the challenges posed by the US action.'

At 8:16am: [LON:WSG] Westminster Group PLC share price was -0.38p at 12p



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