We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 |
TIDMUNG
RNS Number : 7674R
Universe Group PLC
26 September 2017
26 September 2017
AIM: UNG.L
Universe Group plc
("Universe", the "Company" or the "Group")
INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2017
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 2017.
Highlights
-- Revenues GBP8.70 million (H1 2016: GBP9.05 million) -- Gross profit margin improved from 30.8% to 31.8% -- Adjusted EBITDA GBP0.96 million (H1 2016: GBP1.35 million) -- Operating profit GBP0.22 million (H1 2016: GBP0.49 million) -- Earnings per share 0.11p (H1 2016: 0.20p)
-- Net cash inflow from operations increased by 52% to GBP1.32 million (H1 2016: GBP0.87 million)
-- Period of continued heavy research and development in our next generation EPOS product suite
-- Administrative expenses increased by 11% as a result of further investment in our EPOS product management team and the enlarging of our sales teams ahead of major next generation product launches
-- Solution implementations continuing although some still in extended pilot to perfect functionalities working in close partnership with clients
Robert Goddard, Chairman of Universe, commented:
"We have made good progress in further developing our next generation of EPOS products, with live solution implementations underway and others moving through extended pilot phases to fully meet customer expectations. This is set to continue in the second half of the year.
The financial results for the full year are, as in past years, second half weighted and this year's result is more than usually dependent on a small number of high value projects. Delays to these would mean that the company performs materially below current market expectations in the current financial year.
Our product developments and the positive response these are receiving from existing and new customers give us confidence in the long-term prospects for the Group."
For further information: Universe Group plc Robert Goddard, Chairman Jeremy Lewis, Chief Executive Officer Daryl Paton, Chief Financial Officer +44 2380 689 510 finnCap Stuart Andrews (corporate finance) Richard Chambers (corporate broking) +44 2072 200 500 IFC Advisory +44 207 652 9789 Tim Metcalfe Heather Armstrong
CHAIRMAN'S STATEMENT
Introduction
We report below the Company's unaudited results for the six months ended 30 June 2017.
The interim numbers are marginally down as compared to the comparative figures for 2016. However, as in the prior year, results for the full year will be heavily weighted towards the second half. In particular, continuing delays in certain planned customer deployments are now expected to continue into the second half. Further, the precise timing of securing a small number of high-value new projects remains uncertain, albeit the Company remains confident of ultimately securing these contracts. If these projects are not deployed or secured, respectively, on a timely basis then the Directors anticipate that the Company will report results materially below current market expectations.
During the period, we have continued to invest in our next generation point-of-sale, back office and head office software products (EPOS), which we fully expect will provide a solid platform from which to drive future growth in both the fuel and convenience store market places.
Financial Results
Revenues for the first half were GBP8.70 million (H1 2016: GBP9.05 million), producing a gross profit of GBP2.77 million (H1 2016: GBP2.79 million).
The dip in revenues due to delayed customer deployments is reflected in the decline in revenues from hardware and software licences to GBP1.06 million (H1 2016: GBP1.81 million). This drop has been mitigated in part by a strong performance from our services and installation team where revenues are up 14% to GBP3.89 million (H1 2016 GBP3.40 million).
Whilst revenues dipped, we maintained gross profit with a small improvement in gross margin to 31.8% (H1 2016: 30.8%) due to a change in sales mix from hardware and software licences to higher margin service and installations.
Administrative expenses were up in the period to GBP2.54 million (H1 2016: GBP2.30 million), but in line with the second half of 2016. This was largely due to increased spending on sales and marketing and product management resource in the second half of 2016 as we seek to capitalise on the investment in our new EPOS product suite.
Earnings before interest, taxes, share-based payments, depreciation and amortisation ('adjusted EBITDA') was GBP0.96 million (H1 2016: GBP1.35 million). Operating profit reduced to GBP0.22 million (H1 2016: GBP0.49 million).
Net finance expense was GBP0.05 million (H1 2016: GBP0.01 million). This is up on the prior period which benefited from a GBP0.05 million credit arising from the release of an over-provision of contingent consideration payable as a result of the acquisition of Indigo Retail Holdings Limited in 2013.
The underlying tax charge for the period was GBP0.01 million (H1 2016: GBP0.03 million). However, an adjustment relating to the prior year of GBP0.09 million resulted in a net credit for the period of GBP0.08 million. Earnings per share for the period were 0.11 pence (H1 2016: 0.20 pence).
Balance sheet and cash flow
The balance sheet at the end of June remained strong. Net current assets decreased to GBP4.17 million from GBP4.33 million at 31 December 2016 and non-current liabilities reduced to GBP0.70 million from GBP0.90 million at the year end.
Investment in the core business continued with capitalised development costs of GBP0.69 million (2016: H1 GBP0.30 million, 2016 H2 GBP0.66 million) which was focused on development of our next-generation EPOS system.
Capital expenditure in the period was GBP0.26 million (H1 2016: GBP0.27 million).
Cash flow from operating activities for the half year was GBP1.32 million (H1 2016: GBP0.87 million) and the cash generated was largely reinvested into the business as product development, capital expenditure or debt repayment. Cash balances at 30 June 2017 were GBP3.41 million compared with GBP3.41 million at 31 December 2016.
Products
Our new EPOS product suite is being well received. We continue to work closely with our clients to add functionality to the core undertakings and are confident that these will soon gain wider market acceptance.
Outlook
The first six months saw steady revenues with improving gross margins. The balance of the year, and our ability to hit expectations rests upon the successful completion of a small number of key, high value, solution implementations and we are fully focussed on these. However, there can be no certainty that they will be delivered before the year end. Despite the difficulty in forecasting these in the short term, we are confident that the long-term prospects for the Group look encouraging.
Robert Goddard
Chairman
26 September 2017
Universe Group plc Condensed Statement of Total Comprehensive Income (unaudited) for the 6 months ended 30 June 2017 Six months Six months Year ended ended ended 31 December 30 June 30 June 2016 2017 2016 GBP'000 GBP'000 GBP'000 Continuing operations Revenue 8,700 9,051 19,712 Cost of sales (5,935) (6,261) (12,843) --------------------- ------------------ ----------------- Gross profit 2,765 2,790 6,869 Administrative expenses (2,545) (2,296) (4,827) --------------------- ------------------ ----------------- Operating profit 220 494 2,042 Net finance expense (see note 10) (48) (13) (32) --------------------- ------------------ ----------------- Profit before taxation 172 481 2,010 Taxation 80 (26) (175) --------------------- ------------------ ----------------- Profit for the period from continuing operations 252 455 1,835 --------------------- ------------------ ----------------- Earnings per share (see Pence Pence Pence note 8) Basic EPS 0.11 0.20 0.79 Diluted EPS 0.10 0.19 0.76 --------------------- ------------------ ----------------- Condensed Consolidated Statement of Changes in Equity (unaudited) Six months Six months Year ended ended ended 31 December 30 June 30 June 2016 2017 2016 GBP'000 GBP'000 GBP'000
At start of period 22,494 20,540 20,540 Total comprehensive income for the period 252 455 1,835 Share issue net of expenses - - 3 Share based payments 18 42 116 --------------------- ------------------ ----------------- At end of period 22,764 21,037 22,494 --------------------- ------------------ ----------------- Universe Group plc Condensed Consolidated Balance Sheet (unaudited) as at 30 June 2017 30 June 30 June 31 December 2017 2016 2016 GBP'000 GBP'000 GBP'000 Non-current assets Goodwill and other intangibles 13,924 14,011 13,947 Development costs 3,089 2,360 2,745 Property, plant and equipment 2,289 2,039 2,384 19,302 18,410 19,076 --------- -------------------- ------------------- Current assets Inventories 1,340 1,009 1,084 Trade and other receivables 3,800 3,941 5,151 Cash and cash equivalents 3,406 3,408 3,408 8,546 8,358 9,643 --------- -------------------- ------------------- Total assets 27,848 26,768 28,719 --------- -------------------- ------------------- Current liabilities Trade and other payables (3,819) (3,826) (4,448) Current tax liabilities - (270) (136) Borrowings (562) (448) (686) Contingent consideration - (377) (55) (4,381) (4,921) (5,325) Non-current liabilities Borrowings (411) (528) (608) Deferred tax (292) (230) (292) Contingent consideration - (52) - (703) (810) (900) Total liabilities (5,084) (5,731) (6,225) --------- -------------------- ------------------- Net assets 22,764 21,037 22,494 --------- -------------------- ------------------- Equity Share capital 2,334 2,313 2,316 Capital redemption reserve 4,588 4,588 4,588 Share premium account 13,062 13,062 13,062 Merger reserve 2,269 2,269 2,269 Translation reserve (225) (225) (225) Profit and loss account 736 (970) 484 Total equity 22,764 21,037 22,494 --------- -------------------- ------------------- Universe Group plc Condensed Consolidated Cash Flow Statement (unaudited) for the six months ended 30 June 2017 Six months Six months Year ended ended ended 31 December 30 June 30 June 2016 2017 2016 GBP'000 GBP'000 GBP'000 Net cash flows from operating activities (see note 11) Continuing activities 1,471 957 2,716 Interest paid (48) (49) (102) Tax (paid)/received (101) (38) (259) Net cash inflow from operating activities 1,322 870 2,355 ----------- ----------- ------------- Cash flows from investing activities Purchase of subsidiary undertaking (55) (6) (345) Purchase of property, plant & equipment (257) (265) (400) Expenditure on product development (691) (303) (993) Net cash outflow from investing activities (1,003) (574) (1,738) ----------- ----------- ------------- Cash flow from financing activities Proceeds from issue of shares - - 3 Repayment of obligations under finance leases (321) (268) (592) Net cash outflow from financing (321) (268) (589) ----------- ----------- ------------- Increase/(decrease) in cash and cash equivalents (2) 28 28 Cash and cash equivalents at beginning of period 3,408 3,380 3,380 Cash and cash equivalents at end of period 3,406 3,408 3,408 ----------- ----------- ------------- Universe Group plc Notes to Condensed Consolidated financial statements for six months ended 30 June 2017 1 The interim financial statements, which are unaudited, have been prepared based on the accounting policies expected to apply for the financial year to 31 December 2017 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 2016. The interim financial statements do not include all 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 2016 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 based on accounting policies set out in the Group's statutory accounts for the year ended 31 December 2016. 5 Turnover analysis All turnover arises within the HTEC Solutions business segment. Six months Six months Year ended ended ended 30 31 December 30 June June 2016 2016 2017 GBP'000 GBP'000 GBP'000 Hardware and software licenses 1,064 1,814 4,657 Service and installations 3,886 3,399 7,218 Data services 1,984 1,947 3,998 Consultancy and license maintenance 1,766 1,891 3,839 8,700 9,051 19,712 ----------- ----------- ------------- 6 Operating profit and adjusted EBITDA Six months Six months Year ended ended ended 30 31 December 30 June June 2016 2016 2017 GBP'000 GBP'000 GBP'000 Revenue 8,700 9,051 19,712 Cost of sales (5,935) (6,261) (12,843)
----------- ----------- ------------- Gross profit 2,765 2,790 6,869 Administrative expenses (2,545) (2,296) (4,827) ----------- ----------- ------------- Operating profit 220 494 2,042 Depreciation 352 422 870 Amortisation 370 396 743 Share option charge 18 42 116 Adjusted EBITDA 960 1,354 3,771 ----------- ----------- ------------- 7 Taxation Six months Six months Year ended ended ended 30 31 December 30 June June 2016 2016 2017 GBP'000 GBP'000 GBP'000 Current tax: Current year charge/(credit) 14 (8) 206 Adjustments to tax charge in respect of previous periods (94) - (59) ----------- ----------- ------------- (80) (8) 147 Deferred tax: Current year - 34 66 Adjustments to tax charge in respect of previous periods (38) ----------- ----------- ------------- - 34 28 Total tax (credit)/charge (80) 26 175 ----------- ----------- ------------- 8 Earnings per share Earnings per share is calculated by reference to the results and the weighted average of 231,598,935 shares in issue during the period (H1 2016: 231,286,435, FY 2016: 231,347,910). Diluted earnings per share is calculated by reference to the results and the weighted average of 241,384,108 shares in issue during the period (H1 2016: 239,890,379, FY 2016: 241,553,125). The number of shares in issue at 30 June 2017 was 231,598,935. 9 Segment information 6 months ended 30 June 2017 Solutions Corporate Total GBP'000 GBP'000 GBP'000 Revenue 8,700 - 8,700 ---------- -------------------- -------------------- Gross profit 2,765 - 2,765 Administrative expenses (2,374) (171) (2,545) ---------- -------------------- -------------------- Operating profit 391 (171) 220 Finance costs (48) Taxation 80 Profit for the period from continuing activities 252 -------------------- 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 Administrative expenses (2,113) (183) (2,296) ---------- -------------------- -------------------- Operating profit 677 (183) 494 Finance costs (13) Taxation (26) Profit for the period from continuing activities 455 -------------------- Year ended 31 December 2016 Solutions Corporate Total GBP'000 GBP'000 GBP'000 Revenue 19,712 - 19,712 ---------- -------------------- -------------------- Gross profit 6,869 - 6,869 Administrative expenses (4,203) (624) (4,827) ---------- -------------------- -------------------- Operating profit 2,666 (624) 2,042 Net finance expense (32) Taxation (175) Profit for the period from continuing activities 1,835 -------------------- 10 Net finance expense Six months Six months Year ended ended ended 30 31 December 30 June June 2016 2016 2017 GBP'000 GBP'000 GBP'000 Release of provision for contingent consideration - 50 85 Interest receivable on bank deposit 4 9 14 4 59 99 --------------------- --------------------- -------------------- Interest payable on bank loans and overdrafts (1) (14) (25) Interest payable on finance leases (51) (51) (92) Other interest - (7) (14) --------------------- --------------------- -------------------- (52) (72) (131) Net finance expense (48) (13) (32) --------------------- --------------------- -------------------- 11 Cash flows from operations Six months Six months Year ended ended ended 30 31 December 30 June June 2016 2016 2017 GBP'000 GBP'000 GBP'000 Continuing operations Profit before taxation 172 481 2,010 Depreciation and amortisation 722 818 1,613 Share based payments 18 42 116 Interest payable 48 13 32 --------------------- --------------------- -------------------- 960 1,354 3,771 Movement in working capital: (Increase)/decrease in inventories (256) (128) (203) Decrease/(increase) in receivables 1,396 355 (855) (Decrease)/increase in payables (629) (624) 3 Net cash flow from operating activities 1,471 957 2,716 --------------------- --------------------- -------------------- 12 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 PGUGPBUPMGRA
(END) Dow Jones Newswires
September 26, 2017 02:00 ET (06:00 GMT)
1 Year Universe Chart |
1 Month Universe Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions