Thursday 17 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

Westminster Group – emphasises “pleased” & placing “oversubscribed”. Hmmm…

By Steve Moore | Wednesday 19 April 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Westminster Group (WSG) “is pleased to announce a placing” (to raise a gross £1 million at 10p per share) and “the conversion of the balance of the convertible loan notes issued to Darwin Capital Ltd eliminating the facility”. The shares have though responded more than 15% lower.

The announcement notes the placing “oversubscribed”, whilst the Darwin conversion is of £500,000 of notes into 5 million new shares. However, these compare with the shares having reached 13.5p last week and closed the week at 12.25p. I’d thus argue “pleased” and “oversubscribed”, respectively, misplaced and not any meaningful achievement.

The announcement argues the placing funds “to support the development of the company, with a particular focus on investment in its Managed Services division”. However, I previously noted another loss and cash crunch.

The company is now also “pleased to report that the significant 15 year airport security opportunity in the Middle East with revenue potential of £35m per annum has made significant progress recently”. However, it is also added that “there is never any certainty of the outcome or timing of such prospects” - and I note my previous update included that the shares enjoyed a meteoric rise to more than 32p post a half year results announcement which included the likes of “unprecedented growth prospects” and “confidence in our transformational growth prospects”.

Now back towards 10p, at least until there is clearly financial progress and a sustainable financial base here, I’ll continue to avoid.

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on WSG


Comments are turned off for this article.

Site by Everywhen