Westminster reports narrowed losses and solid revenues for 2020
Westminster Group PLC (LON:WSG) has reported improved losses during 2020 as the company said it had “successfully navigated” the coronavirus (COVID-19) pandemic due to its multiple revenue stream business model.
In its results for the year to December 31, 2020, the supplier of managed services and technology-based security solutions reported that, despite delays in the award and delivery of contracts through travel delays and disruption from the pandemic, it had delivered a robust performance with a loss after tax of £0.7mln, narrowed from a £1.3mln loss in the prior year, while revenues remained relatively steady at £10mln compared to £10.9mln in 2019.
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The company highlighted a “strong and profitable” first half during the year, although the second half was more adversely affected by COVID-19, adding that in 2020 it had supplied products and services to 78 countries compared to 66 in 2019.
Post-period, Westminster said it had commenced 2021 debt-free and had made an “encouraging start to the year” despite the ongoing pandemic.
The firm added that all of its large-scale project opportunities remain live and enquiry levels are healthy.
Looking ahead, Westminster chief executive Peter Fowler said 2021 is “looking positive” for the firm.
“There are encouraging signs the Covid-19 disruptions and travel restrictions, which have continued to create delays and challenges for the first few months of the year, are at last easing and we expect to return to revenue growth levels that we were experiencing pre-covid. Revenues from existing contracts, including long-term managed services, and the revenue slippage from 2020 together with the anticipated recovery in our guarding, training and West African Airport operations provide the basis for our optimism”, the CEO said in a statement.
“The business model and opportunities we have been developing over the years underpin our confidence for the future growth of our business. Notwithstanding the continued disruption and delays in the first few months of 2021 we remain optimistic that with restrictions beginning to be eased we can once again return to double-digit revenue growth and whilst there is still uncertainty in the world, we currently still expect to meet 2021 financial year market expectations both at the revenue and [profit before tax] level”, he added.
The company’s shares were up 1.3% at 4.2p in early deals on Friday.