Universe Share Discussion Threads

[howdlep] 01/6/2007 09:54

Taken last night from the Stockmarket Report (uk-analyst.com): -

Confirmation that trading was in line with expectations helped the shares of Universe Group (UNG) make progress. The company said that it had reorganised itself into three sales-driven divisions as part of its new sales and marketing strategy, which in conjunction with a strengthening of its sales team at its HTEC unit, buoyed interest in the shares, which closed 0.875p higher at 7.75p.

[howdlep] 01/6/2007 07:55

Let's see if we can take-out the 8.25-8.5 mid point, then we can think about 10p plus.
At this stage the trading update underpins the share price and will allow other potential buyers of the company to look at future valuations.

[brando69] 31/5/2007 12:47

i reckon we will see 7.5/8.5 shortly

mms been caught on the hop

[brando69] 31/5/2007 12:41

yep definitely delayed buys - transaction times around 11.30

UNG is back on the radar.

[thepinkpanther] 31/5/2007 12:40

delayed buys coming thru circa 7.145, 7.175 and 7.5

dyor.

[brando69] 31/5/2007 12:25

now only one of five market makers left on the offer at 8.5p. rest on 8.75 and 9. yesterday you could get them at sub 7p!

[brando69] 31/5/2007 12:11

GOOD NEWS HAS COME AT LAST...

[brando70] 29/5/2007 17:04

not that obvious, but i'll take that as a no...

i am seriously considering upping my holding and averaging down. i can't see it falling further from here... won't take much good news to get this one a rerating imho

[brando70] 29/5/2007 14:57

thanks for that jaknife - what are your views on ung at present? are you a holder?

[brando70] 27/5/2007 13:25

interesting feature from tmf which paints the backstory....

The Shrinking Universe

By David Holding | 27 March 2007


Universe Group's (LSE: UNG) final results today was the latest in a series of blows below the belt for weary investors that has seen the share price steadily decline from around 30p this time three years ago to its current level of 10.25p.

Nevertheless, the shares have risen slightly due to the crumbs of comfort offered about future performance: "Universe has been through difficult times in the recent past, but we have put into place a sound basis from which to build the business anew. I look forward

to 2007 and beyond with great purpose and optimism."

A placing to raise £3m at 7p per share was also announced.

Chequered History

The worst blow was the announcement on 5 January under the heading "Directorate Change" -- but which was really a lot more than that. The company informed us that it was planning to sell "Bellword" -- the Parisian Bureau de Change business -- and that the Chairman and Chief Executive (and major shareholder) was stepping down to buy half of Bellworld, though he still holds almost 12% of Universe. The company also took this opportunity to announce a placing to raise £360k at 6p per share; less than half the share price at the time!

This came as a bolt out of the blue and knocked the price from around 14p to around 8p.

It was a particularly bitter pill for shareholders to swallow as an announcement regarding a "Strategic Review" of the business, just a few weeks before had been far more bullish: "The Board announces that it has received a number of unsolicited approaches to acquire the Company...but finds that the indicated valuation in each case significantly undervalues the business..." Clearly, the CEO/Chairman agreed.

What Now?

So what now? After the disposal of the bureaux de change we're left with HTEC, a supplier of electronic payment, transaction and loyalty systems to the retail and communication sectors. The business includes point of sale systems for petrol retailers and chip & pin for unattended payments for clients such as ASDA, Morrisons, Pace Petroleum, and Clinton Cards. The company's website gives more detail. HTEC provides information and data to enable companies to improve their business by establishing longer, more profitable relationships with their customers, particularly for customer loyalty programmes.

Sales on the continuing business were £11.3m for 2006 on which the company made a profit before tax (pre goodwill impairment and non-recurring items) of £0.3m. At a price of 10.25p per share, Universe is valued at £7.36m. The key question is whether this valuation presents an opportunity for investors. And to answer that, you need to make a judgement on future performance.

The company is confident about the future and announced a "significant" contract award from a major oil company with today's results for long term supply of software and services to petrol retailing outlets, with initial rollout into Europe, but with the expectation of a wider international rollout over time.

If Universe can deliver on promises made, today's valuation doesn't look too demanding. The broker has pre-tax profits of £1.4m pencilled in for 2007. But it will take a long time to rebuild the trust of cynical investors.

David holds shares in Universe Group.

[brando70] 27/5/2007 13:08

A reminder of recent newsflow, which is why i remain happy to hold...


From 2006 interims...

• Strategy for HTEC focuses on cross-selling products to existing customers
and expanding the online services model to new territories.

Commenting, Ray Mackie, Chairman of Universe, said: "We are confident that an
improvement in trading in the second half year will result in a satisfactory
outcome for the full year, and that trading next year will benefit from the
delay in roll-outs from 2006 to 2007 by two of our major customers."


Last updated: 08 January, 2007
Page 49
HTEC has secured a comprehensive three-year contract with Chevron to provide Chip & PIN maintenance, support and asset management at Texaco-branded sites.

The contract covers Chevron's Chip & PIN payment terminal and PIN pad infrastructure at more than 1,000 sites across the UK, including Northern Ireland.

Ray Mackie, chairman of Universe Group, which owns HTEC, said: "This is a major win for HTEC. Chevron's payment infrastructure is hugely important to it and we are delighted to be its chosen service partner. Approximately one third of all UK petrol stations use HTEC payment technology so we are a leader in this field. Providing the specialist support services to complement this position is an excellent growth step for HTEC's expanding services division."


UK: HTEC Parent Universe Positive for 2007 After Reorganisation
Universe Group PLC , the retail and information systems company, is pleased to announce unaudited Preliminary Results for the year ended 31 December 2006. Universe has report loss for 2006 but presents upbeat front based on reorganisation, new contract with oil company, restructuredd bank facility and the strong performance of HTEC which did make a profit.

Commenting on the results, John Scholes, Chairman of Universe said:
"Universe has taken a number of important steps taken to refocus and re-energise the business in the last few weeks, to address many of the issues that led to the generally disappointing performance in 2006. Since I joined the Board earlier this year, with Paul Cooper who was appointed as Chief Executive at the same time, we, and our fellow directors, have completed the strategic review that the board initiated in November. Universe has been through difficult times in the recent past, but we have put into place a sound basis from which to build the business anew. I look forward to 2007 and beyond with great purpose and optimism."

The Company is undertaking a major restructuring of its finances through a placing of new equity to raise £3.0 million (before costs). We are also putting in place a new bank facility to replace the exiting debt structure. I am confident that HTEC's operating momentum will resume in 2007, to the benefit of both the business and our shareholders.

As part of our recent board changes, Ray Mackie has moved from being Executive Chairman to a non-executive director role. Ray continues to support the company both in his board role and as a significant shareholder.

[brando70] 25/5/2007 15:52

buyers returning at sub 7p. last time it was at this level a month ago, shot back up quickly.... i've topped up with another 14K shares

[brando70] 24/5/2007 18:58

i can only imagine that there is a big sell order still being cleared. no bearish news as far as i can see...

[brando70] 24/5/2007 18:57

ouch - down 5.1%. anyone tried buying today? am tempted to put in an order at just below the midprice and see if i can pick up any more. ung is so unloved at the moment, it cld be possible....

[sharestriker] 23/5/2007 12:08

info found on iii board

I understand that there are a small number of redundancies taking place at HTEC presumably as part of the restructuring. This in itself can be viewed as positive as the company exit from manufacturing as they signalled in their recent announcements. However, following this announcement and evidence of their intent to act on these plans the remaining manufacturing customers will be looking to place their business elsewhere leaving HTEC with a possible collapse of this revenue stream and substancially larger redundancy costs. I see no evidence for a provision for such costs. There in a tough international market with few unique features. If there is no news of a significant progress on the new contract front in the next 6 months then I would advise selling.
--------------------------------------------------------------------------------

[brando70] 22/5/2007 16:43

what makes you think that sharestriker?

and why wasn't i offered any?

i hold at average 8.25p

wld have welcomed chance to bring that down to 7.5p

i have to say wld be v surprised to see this one slip below 7p institutional placing price. those lucky barstewards know they are on a one way ticket to decent gains at that level.

[sharestriker] 22/5/2007 15:42

agreed price for mopping up previous sells!!!

[brando70] 22/5/2007 15:36

big sell - 225,000 shares - went thru today. doesn't seem to be delayed trade. presumably went thrue with KBC as they have 6.75 on the bid. wld normally expect this to have a might affect on the price, but hasn't. anyone got any ideas?

[brando70] 22/5/2007 12:11

am i the only one here?

[brando69] 20/5/2007 18:25

Starting to look v oversold on the RSI, and if it bounces off this current low, I think we'll have a v strong buy signal as it will suggest formation of a triple bottom at 7.625p mid.