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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Universe Group Plc | LSE:UNG | London | Ordinary Share | GB0009483594 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 11.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMUNG
RNS Number : 8658K
Universe Group PLC
27 September 2016
27 September 2016
AIM: UNG.L
UNIVERSE GROUP plc
("Universe", the "Company" or the "Group")
INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2016
Universe Group plc (AIM:UNG.L), a leading developer and supplier of point of sale, payment and on-line loyalty systems, is pleased to announce its unaudited interim results for the six months to 30 June 2016.
Financial Highlights
-- Revenues increased by 2.5% to GBP9.05 million (2015: GBP8.83 million) -- Adjusted EBITDA increased by 9.5% to GBP1.35 million (2015: GBP1.24 million) -- Operating profit increased by 30% to GBP0.49 million (2015: GBP0.38 million) -- Earnings per share increased by 82% to 0.20p (2015: 0.11p) -- Net cash inflow from operations at GBP0.87 million (2015: GBP0.93 million)
Robert Goddard, Chairman of Universe, commented:
"In the first six months of the year we successfully piloted our new generation of products in our growing customer estates. Full scale deployments will begin shortly and will continue into next year. However there is a slight delay in starting these roll-outs from what was originally envisaged and this means the financial performance in the current year will be slightly below management expectations. Our current pipeline and prospects give us confidence for continued growth.
Our new generation of products, which are designed to help our customers enhance their competitive positions, are gaining traction and we are pleased with customer reaction."
For further information: Universe Group plc Robert Goddard, Chairman Jeremy Lewis, Chief Executive Officer Bob Smeeton, Chief Financial Officer +44 2380 689 510 finnCap Stuart Andrews (corporate finance) Tony Quirke (corporate broking) +44 20 7220 0500 KTZ Communications +44 20 3178 6378 Katie Tzouliadis, Victoria Langley, Emma Pearson
CHAIRMAN'S STATEMENT
Introduction
We report below the Company's results for the six months ended 30 June 2016.
The interim numbers show progress against the comparative figures for 2015 however, as in the prior year, results for the full year will be heavily weighted towards the second half.
The reported period has seen intense activity in readying our next generation of products for deployment with new customers and significant progress has been made. However, as can happen with new product deployments, delays have arisen as products have moved through the final phases of being made ready for client requirements. This has had the effect of extending schedules and whilst the products have been deployed in pilot sites at three large customers, commencement of the full scale roll-outs to those customers is now not expected until later in 2016, with completion in the first half of 2017.
Financial Results
Revenue for the first half increased to GBP9.05 million (2015: GBP8.83 million) with gross profit up slightly at GBP2.79 million (2015: GBP2.66 million). Gross margin rose by one percentage point to 31% (2015: 30%) mainly due to better recovery of fixed costs as turnover increased.
Administrative expenses increased slightly to GBP2.30 million (2015: GBP2.28 million), with a GBP0.1 million investment in the sales team offset by a comparable foreign exchange gain due to the strengthening of the Euro against Sterling. We expect that further investment in the sales team will drive growth in the second half and beyond.
The combined effect of the improvement in both revenue and gross margin was a 9.5% rise in earnings before interest, taxes, share-based payments, depreciation and amortisation ('adjusted EBITDA') to GBP1.35 million (2015: GBP1.24 million). Operating profit improved to GBP0.49 million (2015: GBP0.38 million).
Net finance expense was reduced to GBP0.01 million (2015: GBP0.08 million). This resulted mainly from a GBP0.05 million credit arising from the release of an over accrual for deferred consideration payable as a result of the acquisition of Indigo Retail Holdings Limited ('Indigo') in 2013.
The net tax charge of GBP0.03 million was lower than the charge in the prior half year due to an increase in the deferred tax asset, arising on share option gains that will provide a tax deduction in the future. As a result of the reduced tax charge, earnings per share increased substantially to 0.20p (2015: 0.11p).
Balance sheet and cash flow
The balance sheet at the end of June remained strong. Net current assets increased to GBP3.44 million from GBP2.97 million at 31 December 2015 and non-current liabilities reduced to GBP0.81 million from GBP1.09 million at the year end.
Immediately after the half year, we reviewed our software licences with Microsoft and have strengthened our position by investing GBP0.69 million in upgradable, perpetual licences. This capital expenditure is repayable, interest free, over three years.
After the half year end, we also settled the final tranche of contingent consideration due to the former shareholders of Indigo. Payments of GBP0.28 million were made.
Investment in the core business continued with capitalised development costs of GBP0.30 million focused on our next generation of retail systems.
Capital expenditure in the period was GBP0.27 million (2015: GBP0.32 million), including initial investment in our new internal accounting and business systems.
Cash flow from operating activities at the half year was GBP0.87 million (2015: GBP0.93 million) and the cash generated was largely reinvested into the business as product development, capital expenditure or debt repayment. Cash balances at 30 June were higher at GBP3.41 million compared to GBP3.38 million at 31 December 2015.
Products
Our products remain highly attractive within our target markets and we have continued to invest in the next generation of core products. We are also making enhancements to widen their market appeal.
We are about to start large scale deployments across three new customers. In addition, we have made significant progress in the first deployments of a cigarette-dispensing machine that will be integrated into customers' POS equipment. This prepares them for new legislation that requires 'white box' presentation of cigarettes.
Outlook
The first six months of this year saw steady progress in piloting new products in the new customer estates. We confidently expect full-scale deployments of these to begin shortly. However the delayed start means that we will be slightly below management expectations for turnover and profitability for this year. Nonetheless, we still believe that prospects for continuing growth remain encouraging.
Robert Goddard
Chairman
27 September 2016
Universe Group plc
Condensed Statement of Total Comprehensive Income (unaudited)
for the 6 months ended 30 June 2016
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Premium
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 9,051 8,827 20,327
Cost of sales (6,261) (6,170) (13,591)
Gross profit 2,790 2,657 6,736
Administrative expenses (2,296) (2,276) (4,698)
Operating profit 494 381 2,038
Net finance expense (see note
9) (13) (83) (363)
Profit before taxation 481 298 1,675
Taxation (26) (43) (175)
----------- -----------
Profit for the period from
continuing operations 455 255 1,500
Earnings per share (see note Pence Pence Pence
7)
Basic EPS 0.20 0.11 0.66
Diluted EPS 0.19 0.11 0.63
Condensed Consolidated Statement
of Changes in Equity (unaudited)
At start of period 20,540 18,462 18,462
Total comprehensive income
for the period 455 255 1,500
Share issue net of expenses - 452 456
Share based payments 42 42 122
----------- ----------- -------------
At end of period 21,037 19,211 20,540
----------- ----------- -------------
Universe Group plc
Condensed Consolidated Balance Sheet (unaudited)
as at 30 June 2016
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Fixed assets
Goodwill and other intangibles 16,371 16,589 16,442
Property, plant and equipment 2,039 2,342 2,217
18,410 18,931 18,659
---------- ---------- --------------
Current assets
Inventories 1,009 2,061 881
Trade and other receivables 3,941 4,366 4,296
Cash and cash equivalents 3,408 1,967 3,380
---------- ---------- --------------
8,358 8,394 8,557
---------- ---------- --------------
Total assets 26,768 27,325 27,216
---------- ---------- --------------
Current liabilities
Trade and other payables (3,826) (5,633) (4,445)
Corporation tax liabilities (270) (188) (248)
Borrowings (448) (478) (478)
Deferred consideration - - (6)
Contingent consideration (377) (155) (414)
(4,921) (6,454) (5,591)
Non-current liabilities
Borrowings (528) (1,123) (763)
Provisions for liabilities
and changes (230) (348) (264)
Contingent consideration (52) (189) (58)
---------- ---------- --------------
(810) (1,660) (1,085)
Total liabilities (5,731) (8,114) (6,676)
---------- ---------- --------------
Net assets 21,037 19,211 20,540
---------- ---------- --------------
Equity
Share capital 2,313 2,309 2,313
Capital redemption reserve 4,588 4,588 4,588
Share premium account 13,062 13,062 13,062
Other reserves 2,269 2,269 2,269
Translation reserve (225) (225) (225)
Profit and loss account (970) (2,792) (1,467)
Total equity 21,037 19,211 20,540
---------- ---------- --------------
Universe Group plc
Condensed Consolidated Cash Flow Statement (unaudited)
for the six months ended 30 June 2016
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Net cash flows from operating
activities (see note 10)
Continuing activities 957 951 3,656
Interest paid (49) (64) (127)
Tax (paid)/received (38) 47 (109)
----------- ----------- -------------
Net cash inflow from operating
activities 870 934 3,420
----------- ----------- -------------
Cash flows from investing
activities
Purchase of subsidiary undertaking (6) (230) (309)
Purchase of property, plant
& equipment (265) (318) (640)
Expenditure on product development (303) (309) (612)
Net cash outflow from investing
activities (574) (857) (1,561)
----------- ----------- -------------
Cash flow from financing
activities
Proceeds from issue of shares - 52 56
Repayment of obligations
under finance leases (268) (226) (479)
Repayment of loans - - (120)
Net cash outflow from financing (268) (174) (543)
----------- ----------- -------------
Increase/(decrease) in cash
and cash equivalents 28 (97) 1,316
Cash and cash equivalents
at beginning of period 3,380 2,064 2,064
Cash and cash equivalents
at end of period 3,408 1,967 3,380
----------- ----------- -------------
Universe Group plc
Notes to Condensed Consolidated financial statements for six months ended 30 June 2016
1 The interim financial statements, which are unaudited, have been prepared on the basis of the accounting policies expected to apply for the financial year to 31 December 2016 and in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRSs) as endorsed by the European Union. The accounting policies applied in the preparation of these interim financial statements are consistent with those used in the financial statements for the year ended 31 December 2015.
The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim Financial Reporting'. Accordingly, whilst the interim statements have been prepared in accordance with IFRSs, they cannot be construed as being in full compliance with IFRSs.
2 The financial information for the year ended 31 December 2015 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.
3 The Directors believe the Group is well placed to manage its business risks successfully. The Group's forecasts and projections, taking account of reasonably possible changes in trading conditions show that the Group should be able to operate within the level of its facilities. After making enquiries the Directors have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future (being a period of at least 12 months from the date of this report). Accordingly they continue to adopt the going concern basis in preparing the interim condensed financial statements.
4 The half year results were neither audited nor reviewed by the auditors. The interim financial information has been prepared on the basis of accounting policies set out in the Group's statutory accounts for the year ended 31 December 2015.
5 Turnover analysis
All turnover arises within the HTEC Solutions business segment.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Hardware and software licences 1,814 1,564 5,470
Service and installations 3,399 3,418 6,909
Data services 1,947 1,891 3,601
Consultancy and license maintenance 1,891 1,954 4,347
9,051 8,827 20,327
----------- ----------- -------------
6 Operating profit and adjusted EBITDA
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Revenue 9,051 8,827 20,327
Cost of sales (6,261) (6,170) (13,591)
----------- ----------- -------------
Gross profit 2,790 2,657 6,736
Administrative expenses (2,296) (2,276) (4,698)
-------------
Operating profit 494 381 2,038
Depreciation 422 420 903
Amortisation 396 393 844
Share option charge 42 42 122
Adjusted EBITDA 1,354 1,236 3,907
----------- ----------- -------------
7 Earnings per share
Earnings per share is calculated by reference to the results and the weighted average of 231,286,435 shares in issue during the period (H1 2015: 224,877,682, FY 2015: 227,995,737). Diluted earnings per share is calculated by reference to the results and the weighted average of 239,890,379 shares in issue during the period (H1 2015: 236,916,638, FY 2015: 238,022,518). The number of shares in issue at 30 June 2016 was 231,286,435.
8 Segment information
6 months ended 30 June 2016
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue 9,051 - 9,051
---------- ---------- ---------
Gross profit 2,790 - 2,790
Operating expenses (2,113) (183) (2,296)
---------- ---------- ---------
Operating profit 677 (183) 494
Finance costs (13)
Taxation (26)
---------
Profit for the period from
continuing activities 455
=========
6 months ended 30 June 2015
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue 8,827 - 8,827
---------- ---------- ---------
Gross profit 2,657 - 2,657
Operating expenses (2,005) (271) (2,276)
---------- ---------- ---------
Operating profit 652 (271) 381
Finance costs (83)
Taxation (43)
---------
Profit for the period from
continuing activities 255
=========
Year ended 31 December 2015
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue 20,327 - 20,327
---------- ---------- ---------
Gross profit 6,736 - 6,736
Operating expenses (4,018) (680) (4,698)
---------- ---------- ---------
Operating profit 2,718 (680) 2,038
Net finance income (363)
Taxation (175)
---------
Profit for the period from
continuing activities 1,500
=========
9 Net finance expense
Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended
GBP'000 GBP'000 31 December
2015
GBP000
Release of provision for 50 - -
contingent consideration
Interest receivable on bank
deposit 9 4 10
------------------------------ ------------------------------ -------------
59 4 10
------------------------------ ------------------------------ -------------
Interest payable on bank loans and
overdrafts (14) (21) (47)
Interest payable on finance leases (51) (45) (91)
Increase provision for contingent
consideration - - (190)
Other interest (7) (21) (45)
------------------------------ ------------------------------ -------------
(72) (87) (373)
------------------------------ ------------------------------ -------------
Net finance expense (13) (83) (363)
------------------------------ ------------------------------ -------------
10 Cash flows from operations
Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended
GBP'000 GBP'000 31 December
2015
GBP000
Continuing operations
Profit before taxation 481 298 1,675
Depreciation and amortisation 818 813 1,747
Share based payments 42 42 122
Interest payable 13 83 363
------------------------------ ------------------------------ -------------
1,354 1,236 3,907
Movement in working capital:
(Increase)/decrease in inventories (128) (655) 525
Decrease/(increase) in receivables 355 (137) (8)
(Decrease)/increase in payables (624) 507 (768)
------------------------------ ------------------------------ -------------
Net cash flow from operating
activities 957 951 3,656
------------------------------ ------------------------------ -------------
11 Copies of the interim report will be available from the Company's head and registered office:
Southampton International Park, George Curl Way, Southampton, SO18 2RX, and on the Company's website, www.universeplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LFMFTMBTTBBF
(END) Dow Jones Newswires
September 27, 2016 02:00 ET (06:00 GMT)
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