No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Westminster Group announced the start of full operations under its long-term airport security contract in Gabon on Monday, following the successful completion of a 90-day transition period.
The AIM-traded security services provider signed a 15+ year deal in March with Gabon's Ministry of Transport to deliver ground security operations across four airports - three international and one domestic.
It said the agreement involved the provision of advanced security technology, ongoing maintenance, staff training, and comprehensive operational support aimed at aligning airport security with international standards.
Under its managed services model, Westminster said it would fund and operate the security infrastructure, with revenue linked to passenger traffic.
The contract was expected to generate approximately $5.5m in its first year, based on current embarking passenger volumes.
Payments would be collected via a per-passenger fee embedded in the ticketing system, with funds remitted to Westminster either directly by airlines or through a collection agency such as IATA.
The company said the project would enhance Gabon's aviation security framework, and could help attract new international carriers and commercial partnerships to the region.
"I am pleased all the required transition services were completed and that formal operations regarding this important new contract have now commenced on time, which is a testament to the hard work and professionalism of the Westminster team deployed on site," said chief executive officer Peter Fowler.
"This latest long-term managed services security contract in Francophone Africa adds four more airports, Libreville, Franceville, Port-Gentil & Oyem, to our growing portfolio of airport operations around the world and I look forward to Westminster having a long-term presence in Gabon and in playing our part in the successful growth and security of the country's airports."
At 1443 BST, shares in Westminster Group were up 13.66% at 2.33p.
Reporting by Josh White for Sharecast.com.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.