Westminster Group sinks despite record results

Shares in security solutions firm Westminster Group plunged on Thursday despite the company's record revenues and decreased losses during the year ended March 31st.

Revenues more than doubled to £10.1m (2010: £3.8m), while pre-tax losses reduced from £4.2m to £2.0m. Losses per share halved to 10.19p (2010: 20.54p), while gross margins improved to 24% (2010: 10%).

Annual cost of sales were up from £3.8m to £7.6m, while administrative expenses remained relatively steady at £4.1m (2010: £4.2m).

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The company boasted record order intake during the year, which soared from £3.2m in 2010 to £14.7m the following year.

Chief Executive Officer Peter Fowler said: "2011 has been a year of record achievements marking an inflection point for the group. The investment we have made over the last few years in building our global presence has begun to produce meaningful results. The strong momentum and trading we experienced during 2011 has continued into 2012.

"We have a solid order book, growing recurring revenues, improving gross margins, a robust business plan and vision. We have clear strategic goals and objectives and a commitment to the continuing development of our operational infrastructure. We are delivering on our vision and are now seen as a truly global security business. Accordingly we are confident of a solid performance for 2012 and exciting growth prospects beyond."

Divisionally, Westminster International had an "excellent" year, both in terms of revenue and expansion, while training business Longmoor Security is now performing well with its training courses running at an all time high. RMS Integrated Solutions has been stabilised and restructured following its acquisition of CTAC two years ago, while the company has invested in a dedicated sales resource to support anticipated growth in the International Monitoring Services division.

Cash at the end of the period stood at £0.4m, slightly up from £0.3m the previous year.

The share price was down 15.13% to 28.75p by 13:03.

NR