LONDON (ShareCast) - Westminster Group said Tuesday that the West African airport contract announced in February 2012 continues to perform well and revealed new carriers will be commencing operations in 2013, and furthermore that existing operators are expanding their capacity on the route.

It said this should benefit 2013 revenues and margins.

It also said that the contract discussions regarding the international airport in East Africa are "progressing well" and contract negotiations are now in advanced stages. Other similar sales prospects continue to progress, it said.

So far this year the company has won orders worth approximately $4.0m from governmental and corporate customers. This includes $3.25m for a scanning system for a Middle Eastern oil and gas installation and $0.35m from two African governments for specialist security equipment.

Share price hit by placing for fund raising to expand capital base

The group also announced a placing to raise £1.475m before expenses through the issue of 4.92m shares at 30p each. The shares are equal to around 13.1% of the enlarged share capital.

The placing was made to expand the company's capital base and its proceeds will be used for working capital and supporting project expansion.

Shares fell over 10% in morning trade on Wednesday.

Peter Fowler, the Chief Executive of Westminster Group, said: "Westminster is at a game changing point in its growth plans. We are very excited to be able to welcome our new investors to the company and look forward to updating the market on our advanced contract negotiations referred to above at the earliest opportunity."

NR

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