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Shares of managed services and security solutions provider Westminster Group (LON: WSG) are climbing after the company revealed it has been awarded a long-term managed service contract to exclusively provide port screening services at Monrovia Freeport in Liberia West Africa.
The 10-year contract follows yesterday's announcement of a 20-year security contract to provide ground security services within five airports in the Democratic Republic of Congo.
The Liberian Government awarded the screening services contract to a consortium led by Medtech Scientific from the United Arab Emirates, who entered into an agreement with Westminster to provide port screening services for an initial ten years, commencing 1 July. The initial period may be extended.
The deal is expected to generate around $1.1 million in revenue in the first 12 months of the operation.
Westminster will provide the screening systems, warehousing and infrastructure to undertake screening and intrusive search of selected import containers, maintain and operate the systems and provide comprehensive training services to customs and other staff.
With the company having a pipeline of multiple other potential contracts, it stated that it continues to monitor funding requirements and options to ensure it has adequate financing to deal with the anticipated expansion of services.
Westminster CEO, Peter Fowler, said: “This latest new contract win further demonstrates Westminster's global reach and our ability to secure business in new territories and is a testament to the hard work and dedication of our business development teams around the world who have been working hard through the challenging conditions and travel restrictions created by the global pandemic. This particular contract is as a result of more than two years activities.
“A key goal we had set for the Company in 2021 was to secure at least one more large-scale managed services contract and so to have now secured two such contracts in two days is most encouraging.”
After initially rising to 6.7p, Westminster shares are currently at 6.04p, up 4.43%.
Westminster Group shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Westminster Group shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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