Universe Share Discussion Threads

[dealit] 12/4/2018 07:50

If Jeremy Lewis interview is to be believed plus Finncap reiterates 11p target price, time to top up maybe.

[loganair] 11/4/2018 22:16

An interview by CEO Jeremy Lewis about Universe's results:

hxxps://www.directorstalkinterviews.com/universe-group-plc-make-strong-start-2018/412749120


He said early next week at the trade show in Birmingham they hope to announce some further customers for their new EPOS product.

He finished the interview by saying they are looking to be more acquisitive as they seek to broaden their product and geographical foot print.

[cockerhoop] 11/4/2018 18:23

Walbrook82,

They explain the variance in gross margin in the finals

'Historically, gross margin has included the cost of research and development, however, as is customary with most other software companies, this has now been included in administrative expenses. Following the reclassification, gross profit margin is consistent with the prior year at 47.6%'

[walbrock82] 11/4/2018 17:18

Looking at their results, I noticed something fishy about their gross margin. In their annual report in 2016, it states gross margin of 35%, rather than the 48% (if you do the calculations). Readers should double check and find the reasons for this.

My other two big concerns are capitalising costs and goodwill, it has a total combined value of £18m.
The risk of impairment looks to be increasing because profits are declining, although this is subject to management discretion.
Given today's underperformance, I was surprised brokers were previously forecasting the shares to double in the next 12 months! A revision to the future forecast is needed.

Overall, I’m pessimistic about the Universe Group and recommend investors to don’t buy until they do further due diligence as the risks are on the high side that something could go wrong. It is one of those stocks that requires monitoring.
For more on Universe Group and other companies’ results from Tesco and Epwin, click

[loganair] 11/4/2018 09:53

"as well as the prospect of new business from a major international forecourt operator with whom we have not traded before."

It seems to me what Universe desperately needs are a few more customers as they only rely on 5 customers for almost all their revenue and they haven't signed up a new customer over the past 3 years.

[boadicea] 11/4/2018 09:50

Results certainly do not sparkle but could have been worse - e.g. no cash call likely afaics. They are pretty much already in the price, I think, but that won't prevent a further drop, at least temporarily.
I unloaded the vast majority of my holding a while back and will continue to watch for an upturn. The one thing that struggling retailers are unlikely to cut back on is payment hadling efficiency and promotions imo. However, I want to see more positive indications that the current strategy is working out before further commitment.

[spud] 28/3/2018 22:50

No longer a holder but Conviviality woes don't bode well. spud

[arthur_lame_stocks] 24/3/2018 16:30

Results should be out soon. Let's hope that the outlook for this year is a bit better.

[dealit] 07/3/2018 07:23

News at last even if not a substantial contract:-

Universe Group plc (AIM: UNG.L), a leading developer and supplier of point of sale, payment and on-line loyalty systems, announces that it has signed an agreement with NetPay Merchant Services Limited ("NetPay") to offer their acquiring and on-boarding solutions to the Group's retail clients.

[dealit] 29/1/2018 16:35

Price up slightly today maybe an announcement of contract.

[dealit] 23/1/2018 19:52

Does anyone know if the changes in the way customers pay for items in retailors i.e. no cashiers will benefit UNG in anyway.

[easwarareddy] 15/12/2017 08:34

Blu.... the next lion imo.... get in quick.... boom

[cockerhoop] 15/12/2017 08:31

UNG customer CVR Conviviality Retail intending to buy 127 stores.



Should provide a decent contract for Universe to integrate systems in due course.

[dealit] 27/11/2017 15:34

Let us all hope that the delayed contracts materialise in the new year.

[loganair] 27/11/2017 10:39

It seems to me the biggest challenge Universe faces is that it only has a very small number of customers and desperately needs a few more to balance things out a little.