Shares in Banbury-based managed services and technology-based security firm Westminster Group have dropped by nearly a quarter (24.21 per cent) after it scaled down its revenue expectations.
In August of this year, the group said it was “optimistic” it would meet 2022 market expectations. However, following delays in a multi-million pound technology project, the Westminster Board now expects revenue to be around one third below market expectations, leading to a pre-tax loss approximately half that which it reported in 2021.
The project, a contract covering five airports in the Democratic Republic of the Congo which was announced in June 2021, was originally expected to be finalised in Q4 of 2022. While this is still the case, Westminster now expects to start generating revenue on it in early 2023.
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Another factor is the ongoing negotiation of a multi-million pound technology project for the MENA region, of which time is running out to deliver and recognise revenues in 2022, meaning at least a portion is likely to slip into 2023.
More positively, the Group reports that revenues from its West African Airport operations look set to reach their highest level since operation started in 2012.
The Group has also pointed to two new contract wins stemming from the forthcoming Protect Duty legislation, one for an iconic UK building and another for a theatre and exhibition complex in Northern England.
Westminster also notes it expects to secure at least one more “long-term, large-scale” contract this year, “[h]owever, if signed, there would be little, if any, revenue recognised in the current year.”
The Group also notes strained relationships with its partner in Ghana, Scanport, which it is likely to enter into mediation with and may lead to an early termination of the project.
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Featured image: Westminster Group
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