LONDON (ShareCast) - (ShareCast News) - Westminster Group, an international security service provider, experienced a fall in revenues due to the Ebola crisis and delays to projects in 2015 but the first four months of 2016 have seen an improvement.
In 2015 revenues fell from £3.49m to £3.36m, as an increase in revenue at the company's technology division was offset by a decline in the managed services business.

Revenue at the technology division rose to £1.7m from £1.2m last year.

The managed services division, however, was affected by the fall in passengers to West Africa due to the Ebola virus. The division comprises of the airport security business and ferry operations. Revenues fell to £1.7m from £2.3 the year before.

Revenues in the airport security business have since increased by 85% in 2016 due to the Ebola virus waning and passenger numbers increasing. West Africa was declared Ebola free on 17 March 2016.

The company was again offset by complications to its ferry project to provide a professional service in Sierra Leone across the estuary between the capital Freetown and the international airport on the Lungi peninsula. Its 200 seat flagship vessel the Sierra Queen suffered damage and complications in its repairs.

Loss per share was reduced by 29% from 4.94 in 2014 to 3.49p in 2015. The company reported a 73% reduction in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss to £0.44m from £1.59m the previous year on cost cuts.

Total operating and administrative costs were slashed by 17% to £3.6m during the period, which included job cuts in West Africa and the headquarters in Banbury, UK.

Since then there has been an improvement in the EBITDA performance in 2016 as the company is close to break-even.

The company's outlook looks bright as three memorandums of understanding have been signed, seven in total for future projects. A letter of understanding has been received for a long-term air project with potential annual revenue of £30m. A new vessel, the Serra Princess, has also been secured and a new website is underway.

Chief executive Peter Fowler said: "Following two years of dealing with and overcoming a range of challenging issues, I believe we are now emerging leaner, stronger, and as a result of the strategic review we are undertaking, better structured to ensure maximum shareholder benefit is achieved from the numerous large scale, long term and high margin Managed Services opportunities we are developing.

"These Managed Services opportunities are now a key focus of our business and we remain excited about our future growth prospects."

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