SHARE PUNT OF THE WEEK

WHAT IS IT?

Westminster Group provides security services for airports, ports and ferries. It also has a technology division providing surveillance, detection, tracking, screening and interception technologies to governments and blue-chip companies. Customers include the US Air Force, Royal Air Force, Shell, Amazon and BAE Systems.

WHAT’S THE LATEST?

One of the company’s key clients is Sierra Leone airport, so it suffered a tough time throughout the ebola outbreak, losing more than 90pc of its highest value. However, its revenue streams from the airport seem to be showing strong recovery in recent months. Last month, it had made significant progress on an airport security contract in the Middle East, which could be worth more than £500m.

WHO BACKS IT?

The company’s largest investor is asset management company Hargreave Hale, which has an 11.6pc stake in the firm worth around £1.8m. Chief executive Peter Fowler comes in as the largest individual shareholder, with a 4.4pc stake. Fowler, who was paid £187,000 in 2014, has worked at Westminster since 1996.

WHY YOU SHOULD INVEST…

The company looks to have growth opportunities in the pipeline and has in the past demonstrated the potential strength of its global reach. Unlike cyclical markets like oil and housing, which go in and out of favour, security will always be needed.

…AND WHY YOU SHOULDN’T

A lot of Westminster’s operations are in emerging or frontier markets, where factors such as political unrest can affect operations in a way which is out of the firm’s hands. The firm’s sensitivity to these sort of events may make it too risky for some investors.