News blog
Westminster Group
- BY: Andrew Hore |
- POSTED: 16/04/2010 |
Westminster Group is buying security services provider CTAC Ltd for up to £1.8m.
The security, defence, fire and safety products and systems supplier is also raising £512,500 from a subscription at 41p a share. This follows yesterday’s placing which raised £250,000 at 33.5p a share. The placing added three new institutional shareholders.
The initial payment for CTAC is £825,000 - £500,000 in cash and the rest in shares issued at 41p each. Further payments of up to £1m will be based on 40% of net profit over a two year period following the completion of the acquisition. CTAC made a loss of £70,000, after exceptional costs of £274,000, in 2009. The first three months of 2010 have generated a trading profit of around £89,000.
CTAC customers include Severn Trent Water and DeBeers. It operates an alarm receiving centre in Kidderminster. CTAC’s UK infrastructure will help Westminster with its framework contract with the UK Ministry of Justice. The four year contract is to supply and maintain access and security equipment to 139 prisons in England and Wales.
The purchase of CTAC will boost Westminster’s UK earnings and provide a more predictable revenue stream than the majority of Westminster’s business which is more dependent on individual contracts that can be lumpy in nature. CTAC will also provide cross-selling opportunities.
At 37p a share, up 2.5p, Westminster is valued at £5.53m.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|