Peter Fowler (CEO) Ian Selby (CFO) This presentation, which is made - - PowerPoint PPT Presentation

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Peter Fowler (CEO) Ian Selby (CFO)

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• r exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other investment professionals, high net worth

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• ther description, including those who do not have professional experience in matters relating to investments, should not rely on these presentation

materials or act upon their content, and should return the same and all copies. This presentation does not comprise an admission document, listing particulars or a prospectus relating to Westminster Group plc (“Company”) or any subsidiary of the Company, and does not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. This presentation and the accompanying verbal presentation (this presentation and the accompanying verbal presentation together, “Presentation”) do not constitute any recommendation regarding any decision to sell or purchase securities in the Company sell or purchase securities in the Company. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company or its respective shareholders, directors,

• fficers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Presentation, and no

liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). The Presentation contains forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward- looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward- looking statements looking statements. The Presentation should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person whatsoever, including but not limited to any person with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement.”

The Westminster Group is a specialist security group operating worldwide via an

We are delivering on our vision, have built a strong brand and are now seen as a truly global security business. The board and I remain excited about our growth prospects for 2014 and beyond.”

“

security group operating worldwide via an extensive international network of agents and offices in over 48 countries.

Peter Fowler, Chief Executive Officer.

The Group’s principal activity is the design, supply and ongoing support

• f advanced technology security solutions and the provision of long term
• f advanced technology security solutions and the provision of long term

managed services, consultancy and training services.

primarily to

Governments & Governmental Agencies Governments & Governmental Agencies, Non Governmental Organisations & Blue Chip Commercial Organisations Worldwide Worldwide with a focus on the Africa, Asia, Middle East & Latin America

Lieutenant Colonel Sir Malcolm Ross GCVO, OBE

(F h d f th H h ld f th Q )

Peter Fowler

(40+ years experience in the security industry) (Former head of the Household of the Queen) industry)

Ian Selby

(Chartered Accountant with significant board level experience)

Roger Worrall (40+ years experience in the security industry) y) Stuart Fowler BEng (Hons) (15 years experience in the security industry)

• Hon. Sir Michael Pakenham KBE CMG

(Former British Ambassador and Chairman of the Joint Intelligence Committee)

Matt Wood (15 years experience in corporate finance) The Right Honourable Sir John Wheeler, KStJ, PC. HQA, JP, DL.

(Former UK Minister for Security and Chairman of the National Criminal Intelligence Service and the National Crime Squad)

Our vision has been to build a global security business focussed on delivering ‘end Our vision has been to build a global security business focussed on delivering end to end’ integrated security solutions to high growth and emerging markets around the world. The Group’s strategy is to build shareholder value through the generation of long term recurring profitable cash flows. Having invested heavily in recent years in building up our international presence, we now have strong brand awareness worldwide and we believe we are now set f f h for significant growth.

Our business has evolved from a traditional UK focused security alarm business to a truly international business, today providing a wide range of security and defence equipment and solutions world‐wide. We are focussed on growing our business in emerging and high growth markets in the Middle East, Africa, Asia & Latin America. ,

We now have a truly global footprint with representation in 48 countries. We have a track record of successfully delivering multi‐million pound complex security solutions around the world.

Over 100 offices and agents in 48 countries across the globe

Our operating companies are structured into two operating divisions, Managed Services and Technology, both primarily focussed on international business as gy, p y follows:

Managed Services Division Technology Division Managed Services Division Technology Division

Focusing on providing advanced technology led security solutions encompassing a wide range of surveillance, d i ki d i i h l i Focusing on long term managed services contracts such as the management and running of complete security services d l i i i d h h f ili i d detection, tracking and interception technologies. and solutions in airports, ports and other such facilities and the provision of manned services, consultancy and training etc.

Iraq Airport Security Armenia Scanning Equipment Jordan X‐Ray Scanning Systems Kuwait P bli Add Egypt Diver Detection Net UAE Diver Detection Sonar Hotel Security Site Security Afghanistan Public Address Norway De‐Mining Equipment Switzerland Search Equipment Latvia Fire Test Equipment UK Integrated Solutions, Surveillance & Detection Systems Afghanistan Scanning Systems India Specialist Fire Equipment Malta Mobile Scanning System China People Scanning Switzerland Search Equipment Euro Parliament X‐Ray Screening Netherlands Fire Detection System North Africa Morocco Harbour security USA Search & Inspection Equipment, Diver Disruption Equipment Republic of Ireland Government Building Perimeter Security Spain X‐Ray Systems Equipment Bangladesh Mine Clearance Equipment H K France Embassy Security KSA Diver Detection Sonar Southern Sudan Juba Airport Project Pakistan Scanning Equipment Sierra Leone Airport Security Liberia Sri Lanka Embassy Security Port security Hong Kong Vehicle Surveillance Indonesia RF Jamming Equipment KSA Bomb Alert System, Covert Tracking Equipment Yemen Petrochemical Plant Perimeter Protection Nigeria Perimeter Protection Chile Screening Equipment Argentina Personnel Screening Ghana Banking Security Diver Detection System Airport Security Madagascar Sub Sahara Africa Interception System Ethiopia CCTV National Bank of Ethiopia Perimeter Protection Space Centre Rwanda South Africa Mobile Surveillance Madagascar X‐Ray Scanning Systems

Examples of Westminster’s worldwide solutions

Sudan ‐ Power Station Protection Airport Screening Equipment

Complete Airport Security Management – Africa (15 year $150m+) Complete Airport Security Management Africa (15 year $150m+)

Westminster secured a 15 year contract worth in excess of $150 million over the term of the contract to provide the complete ground security services including equipment and manpower, to a West African airport. equipment and manpower, to a West African airport.

Scanning Equipment – Middle East ($3m)

Westminster secured a $3 million contract to supply advanced vehicle i i t t t t th t t t h i l f ilit i th screening equipment to protect the entrance to a petrochemical facility in the Middle East.

Royal Palaces Protection & Marine Security – Middle East ($11m)

Westminster secured an $11 million contract to provide advanced technology security solutions to secure the royal palaces of a Middle East Royal Family.

• We provide advanced security products and services to emerging and high growth markets;
• We are not a manufacturer and are product agnostic ‐ not dependent on any single product,

supplier or technology;

• We provide a wide & diverse client base worldwide ‐ not dependent on any single client or

region; region;

• We have built an extensive network of over 100 agents throughout the world providing in

country labour, service and logistics creating a global footprint without fixed costs (difficult to li d ki l bl b i ) replicate and making us a very scalable business);

• We have a major web presence for each of our operating companies – including one of the

largest security websites in the world, producing high levels of enquiries currently over 300 g y p g g q y per month;

• We have a strong established brand and worldwide reputation with an extensive

governmental and ‘blue chip’ client base and a successful track record of delivering complex governmental and blue chip client base and a successful track record of delivering complex international security projects and delivery of services worldwide;

• Managed services model can generate long term (10 – 25 year) high margin revenues on a

predictable recurring basis;

• Operating leverage means that profits can grow faster than costs;
• We enjoy strong UK government FCO and UKTI support worldwide and
• We enjoy strong UK government, FCO and UKTI support worldwide; and
• We have built strong connections with governments around the world.

Examples of recent meetings with international Presidents:

President of Tanzania President of Burundi 1st President of Zambia President of Namibia 1st President of Namibia Vice President of Zanzibar President of Namibia 1 President of Namibia Vice President of Zanzibar

We have an impressive client base of governments and ‘blue‐chip’ corporations which underpins our global reputation and which is enhanced with each new t t A l f li t b i i b l

Aberdeen Airport Alginina Airport Sudan Associated British Ports Southampton Exxon Mobil Foreign & Commonwealth Office Government of Egypt Mercedes Benz Ministry of Defense Ministry of Justice

contract we secure. A sample of our client base is given below:

Based on our experience with Westminster we can unreservedly recommend the company to anyone who d th i i ”

“

Associated British Ports Southampton Australian Embassy BAE Bahrain Airport Services Balfour Beatty Rail Limited Bali Airport Bangladesh Army Government of Egypt Government of Kenya Government of Ukraine Government of Yemen H M Tower of London Heathrow Airport Ltd Heglig Airport Ministry of Justice Ministry of Transport ‐ Sudan Mobily (Etihad Etisalat) Moroccan Navy Museum of London National Assembly for Wales National Electricity Corporation

needs their services.

Constantin Vasile, Ph.D. - International Atomic Energy Agency

”

g y Bank of Muscat Bank of Sudan Barclays Bank BBC BP Britannia Royal Naval College g g p Highland & Islands Airport Ltd Hilton Hotels HM Customs and Revenue HM Prison Service Home Office Honda F1 y p NEC Birmingham Newcastle International Airport Northern Ireland Assembly Port of Dover Royal Brisbane & Women’s Hospital Royal Brunei Armed Forces

The contribution made by Westminster at Freetown Airport has resulted in significantly increased level of security that is now equivalent to European standards and which provides confidence to British Airways in t f ti t Si L BA l

“

British Embassies British Gas British Nuclear Group Broadmoor Hospital Cable & Wireless Canadian Nexen Petroleum Cit f D Ai t Hong Kong Military & Constabulary International Atomic Energy Agency International Monetary Fund Irish Parliament Italian Embassy Jakarta Airport J d P it ti R f Royal Brunei Technical Services Royal Embassy Of Saudi Arabia Royal Victoria Infirmary Rugby Football Union Saudi Port Authority Sellafield Ltd Sh t K l H t l

support of operations to Sierra Leone. BA also recognises the partnership approach taken by WASS with customers.

Anton de Ridder, Manager Aviation Security - British Airways

”

City of Derry Airport Coventry University DFID Dept of Navy/Marines Deutsch Bank AG London Dubai Aviation Corporation East Midlands Airport Jordan Penitentiary Reform Juba Airport Karachi Airport Kempinski Hotel Mall of the Emirates Kent Fire and Rescue Service Kurdistan Government Labadi Beach Hotel Sheraton Kampala Hotel Sierra Leone Airport Sony UK Ltd South African Airways Tanzanian Air Service Turkish Embassy UK Police Forces East Midlands Airport Ecobank Ghana Limited EDF Energy Embassy of the Republic of Korea Environment Agency Ethiopian Airlines European Parliament Labadi Beach Hotel London City Airport London Thames Barrier Lothian & Borders Fire and Rescue Magnox ‐ Nuclear Sites Malta International Airport Plc Manchester Airport UK Police Forces United Nations US Air force Virgin Airways World Food Programme Zambia Drug Enforcement Commission Zenith Bank p Eurostar p Mediterranean Aviation Company

£’000 31 Dec 2012 31 Dec 2011 31 Dec 2010

Revenue 9,462 10,065 3,937 Cost of Sales (5,925) (7,606) (3,398) Gross Profit 3,537 2,459 399

Gross Margin % 37.4% 24.4% 10.1%

Operating Costs (4,748) (4,087) (4,658) Operating Loss (1,211) (1,628) (4,169) Interest (439) (356) (190) Taxation 46 (727) 136 Loss After tax (1,650) (2,711) (4,223)

Our Increasing gross margin reflects the evolution of our business through investment stages towards the high growth stage of managed services and

” “

solutions. Ian Selby, Chief Financial Officer.

”

10 12 PAX Millions 8 6 4 2 Feb‐12 Nov‐12 May‐13 Aug‐13

Embarking PAX (million) announced so far

We believe we are at the foothills of a tremendous opportunity to grow a long term i b i ith t iti d l i i Af i A i C ibb L ti

“ recurring revenue business, with opportunities developing in Africa, Asia, Caribbean, Latin

America and even Europe. Ian Selby, Chief Financial Officer.

”

3.50 3.00 2.00 2.50 1.50 1.00 0 00 0.50 0.00 19/06/2013 27/06/2013 10/09/2013 27/09/2013 10/10/2013 25/10/2013 29/10/2013 06/12/2013 07/04/2014 Debt Outstanding £'m Annualised Interest £'m

We are successfully reducing our debt and financing costs. Ian Selby, Chief Financial Officer.

” “

Source: Digital Look 26/3/14

Board 20% Strategic Partners 33% Strategic Partners 33% Free Float 47%

2 0 2.5 Millions

Average daily volume 270k.

1.5 2.0 1.0 0.5 0.0 02‐Apr‐13 02‐May‐13 02‐Jun‐13 02‐Jul‐13 02‐Aug‐13 02‐Sep‐13 02‐Oct‐13 02‐Nov‐13 02‐Dec‐13 02‐Jan‐14 02‐Feb‐14 02‐Mar‐14 p y g p

Liquidity has improved from 0.04% of share capital being traded on a daily basis in 2009 to 0.71% in 2013

• Significant growth potential from huge prospect pipeline;
• Markets have a strong macroeconomic drivers with the highest

global growth rates;

• Experienced board & management team;

St b d d l b l

• Strong brand and global presence;
• Proven track record and blue chip client base;
• Proven managed services model capable of delivering long term (10‐

25 years) recurring revenue with strong cash dynamics; y ) g g y ;

We are delivering on our vision, have built a strong brand d t l l b l it b i

“

In conclusion….

and are now seen as a truly global security business. Given the above the board and I remain excited about

• ur growth prospects for 2014 and beyond.”

Peter Fowler, Chief Executive Officer.