Westminster Group trading update: growth, cash squeeze, and a pathway to profit
Westminster Group’s latest trading update packs in the good, the bad, and the potentially transformational. Revenues are up sharply and a key African contract is finally unblocking, but the shares remain suspended while overdue accounts are finalised and cash collection lags have bitten. Here’s what stands out, why it matters, and what to watch next.
Headline numbers investors should know
| Metric | Figure | Context |
|---|---|---|
| FY25 revenue (to 30 June 2025) | circa £8.2m | About 35% up on 2024 (like-for-like) |
| FY25 EBITDA | loss of circa £0.62m | Improved from £1.47m loss in 2024 |
| H1 to 31 Dec 2025 revenue | circa £7.5m | About 100% up year-on-year |
| H1 to 31 Dec 2025 EBITDA | profit of £1.5m | Includes revenues yet to be collected |
| Gabon receivables carried (H1) | £3.5m | Airlines’ confusion delayed payments |
| Sierra Leone funds in dispute | ~$3.5m (of which $1.4m in H1) | Currently in escrow pending court process |
| Expected Gabon cash inflow | $600k-$700k per month | Target start from May 2026 |
Quick jargon buster: EBITDA is earnings before interest, tax, depreciation and amortisation – a proxy for operating cash profit before non-cash charges.
Share suspension and reporting timetable
Westminster plans to publish its Half Year Results to 31 December 2025 and its 2025 Annual Report and Accounts in May 2026. Under AIM Rules 18 and 19, trading in the shares will remain suspended until both documents land. That makes May a pivotal month for visibility and – potentially – the lifting of the suspension.
Cash flow pressures: uncollected income and funding options
Despite the strong top-line growth and an H1 EBITDA profit, the company has faced temporary cash-flow pressure because some recognised revenues from Sierra Leone and Gabon haven’t yet been collected. To bridge this, Westminster has used short-term loans and is weighing longer-term funding options.
On 30 December 2025, Westminster outlined an indicative $2.5m strategic investment proposal from a partner active in Africa and the Middle East. Terms include an initial $1m advance and $1.5m to follow post-EGM approval. If an EGM isn’t called within three months, Westminster can either return the $1m with 15% interest or form a 50:50 profit-share joint venture on the Gabon project. Important caveat: no funds have been received yet and the arrangement can be terminated until cash is in.
Separately, an offshore banking facility for project financing is progressing, with accounts opening and trade insurance being arranged. Availability is anticipated in May 2026, giving Westminster flexible project finance for Gabon and other large contracts. The company also says it has “a number of other potential funding options” under consideration.
Sierra Leone airport contract: escrow dispute and potential arbitration
Westminster has operated airport security in Sierra Leone for 13 years. A vexatious claim by a local businessman led to a temporary judgment, with UK-due monies (excluding local costs) paid into escrow – a third-party holding account – pending the legal outcome. Westminster expects a decision on releasing funds estimated around $3.5m, of which $1.4m is recognised in the H1 numbers.
Given the slow and politically influenced legal process, Westminster has engaged the potential strategic investor to help expedite collection, offering 50% of any recovered funds. If nothing is recovered, Westminster plans to seek redress via international arbitration under the UK–Sierra Leone trade treaty, with a claim around $10m. This is a meaningful potential upside, but timing and outcome are uncertain.
Gabon managed services contract: decree reset and monthly cash from May
The 15+-year Gabon airport security contract (four airports, per-passenger USD fee collected via ticketing or IATA) was expected to start in Q3 2025. Confusion between government entities caused uneven airline compliance, creating a debtor build-up of £3.5m in H1.
The President commissioned a multi-agency review in December 2025. In March 2026, the commission’s final report was signed, clearing the way for a new decree – the formal legal instrument to enact the contract – and a resumption of full activities. Westminster now expects to receive $600k-$700k per month from May 2026. Based on current passenger levels, the contract is expected to generate around $8m annualised revenue with 3-4% growth as traffic increases. Once the new decree is in place and cash starts flowing, the company will pursue recovery of outstanding debts.
DRC delay, EIB project near completion, and a busy pipeline
In the Democratic Republic of Congo, hostilities in the east have delayed progress. Goma airport is unlikely to be included until conditions improve, though Westminster says this has no material impact on revenues. Focus remains on executing Gabon before refocusing resources on the DRC.
A $1.7m European Investment Bank-funded upgrade at two Southeast African airports is nearing completion, with talks about shifting to a managed services contract next – a potentially higher-margin, recurring model. Aviation security training continues globally, widening Westminster’s network for future contracts. The guarding division is “going from strength to strength,” with a 48% like-for-like increase in guarding hours in 2025.
The opportunity pipeline is broad and international. Highlights include:
- A joint venture with a US group (circa $800m turnover) to design perimeter security for US Air Force bases – potentially a gateway to the US market.
- Multiple African projects across coastal radar and truck scanners with combined opportunities exceeding $10m.
- Middle East palace and port security tenders, and UK and European sports and stadium trials boosting credentials in large-crowd security.
- A national defence vehicle-screening project progressing through final assessment with a £2m-£4m order expected in Q2 2026.
Board and governance changes
Two directors and the NOMAD (AIM’s nominated adviser) have resigned. Westminster is restructuring the Board and its adviser line-up to fit its next phase. This raises short-term governance questions but could also refresh oversight ahead of potentially material contracts and financing steps.
Why this update matters
Positives:
- Strong revenue growth and a swing to H1 EBITDA profit suggest the model is scaling.
- Gabon looks set to turn into a dependable monthly USD cash stream from May, with long contract life and passenger-linked growth.
- Multiple funding avenues are in play, including an offshore facility targeted for May.
- Guarding growth, EIB project progression, and a credible pipeline diversify future revenue sources.
Risks and watch-outs:
- Suspension remains until both the Half Year and FY25 accounts are published in May 2026.
- Cash collection is the key swing factor – notably the £3.5m Gabon receivable and Sierra Leone escrow funds.
- The strategic investment is not yet funded and can be terminated; governance changes add uncertainty.
- Execution risk in Gabon and broader geopolitical risk remain live issues.
What to watch next (near-term catalysts)
- Publication of the Half Year Results to 31 December 2025 and FY25 Annual Report in May 2026 – potential precondition to lifting the suspension.
- Issue of the new Gabon decree and commencement of $600k-$700k monthly receipts from May 2026.
- Resolution or acceleration of the Sierra Leone escrow case, or movement toward arbitration.
- Confirmation of the offshore project finance facility in May 2026.
- Any binding funding agreement (including the $2.5m strategic investment) and EGM timetable.
- Progress updates on the US Air Force JV and the expected £2m-£4m national defence order in Q2 2026.
Josh’s take
This is a classic “show me the cash” moment. The income statement is pointing the right way, but the balance sheet needs to catch up via collections in Gabon and Sierra Leone. If the May milestones land – accounts published, Gabon decree issued, monthly USD payments flowing, and project finance in place – Westminster moves from promise to proof.
Execution and funding are the immediate hurdles. Clear them, and the long-tenor, per-passenger model in Gabon, plus a fuller pipeline, could push the group into sustained profitability. Miss them, and the cash squeeze lingers. For now, the direction of travel is encouraging – but delivery in the next few months will make all the difference.
