Westminster Group lowers revenue predictions

Shares in AIM-listed security solutions firm Westminster Group have taken a hit after admitting revenues are now expected to come in below expectations and broadly similar to levels seen the previous year.

This is lagely due to the Product and Solutions business making a materially lower contribution than originally anticipated.

As such, revenues for the period are expected to be in the region of £10.1m, compared to forecasts around the £14.5m mark.

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This, as the company explained, has had a further negative impact: "The revenue slippage outlined above, combined with our investment focus on our expanding aviation division, has delayed our expected pay-down of the Synergy loan which will result in a higher interest charge than envisaged for the current financial year. The board intends to make repayment of this loan at the earliest opportunity."

2012 revenues will include around £1.7m of additional recurring revenues derived from the delivery of the managed services airport security business, the firm added. Furthermore, the company has reported that several further airlines have recently commenced flights at the West African airport, partly as a result of the services it provides there.

In other positive news, the group has signed exclusive heads of terms with a further airport for the provision of similar services.

"Whilst, as ever, the result of such contract negotiations can be uncertain as to eventual outcome and timing, this is a very positive development for Westminster," it said.

"Currently the company is in active negotiations with additional airports across Africa for the provision of similar managed services," it added.

Shares fell 11.71% to 24.50p by 08:57.

NR