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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 : 1761B
Universe Group PLC
19 September 2018
19 September 2018
AIM: UNG.L
Universe Group plc
("Universe", the "Company" or the "Group")
INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2018
Universe Group plc (AIM: UNG.L), a leading developer and supplier of point of sale, payment and on-line loyalty systems, announces its unaudited interim results for the six months to 30 June 2018.
Highlights
-- Revenues up 6.3% to GBP9.25 million (H1 2017: GBP8.70 million) -- Adjusted EBITDA GBP0.98 million (H1 2017: GBP0.96 million) -- Operating profit GBP0.17 million (H1 2017: GBP0.22 million) -- Earnings per share 0.06p (H1 2017: 0.11p) -- Net cash inflow from operations up at GBP1.98 million (H1 2017: GBP1.32 million)
-- The delivery of plans in payments and loyalty has been pleasing, although the completion of next generation EPOS products for the convenience sector was delayed until the current quarter
-- Recent developments include the investment in hiring a new Sales and Marketing Director in June and a Chief Technology Officer this month
Andrew Blazye, Non-Executive Chairman of Universe, commented:
"We are pleased to report that revenues across the Group's activities for the first half show growth on the same period last year, that we have secured important existing contracts and won new customers and remain cash generative with a strong backbone of recurring revenue. We have continued to invest in the business with key hires and product development which has impacted short-term profit growth but with clear benefits for the longer term.
The Group is therefore overall in robust health and well positioned in the market. We are, as previously stated, also a second half weighted business, dependent on a small number of high value projects with lengthy sales cycles. The above considerations, and that our convenience sector EPOS product has become available to the market later than expected, leads us at this stage to expect sales for the year to be consistent with those of the previous financial year.
We are confident that the early actions we've taken in the marketplace mean we are well positioned for growth in 2019 and beyond."
For further information: Universe Group plc Andrew Blazye, Non-Executive Chairman Jeremy Lewis, Chief Executive Officer Daryl Paton, Chief Financial Officer +44 2380 689 510 finnCap Stuart Andrews (Corporate Finance) Richard Chambers (ECM) +44 2072 200 500 IFC Advisory +44 203 934 6630 Tim Metcalfe Heather Armstrong
CHAIRMAN'S STATEMENT
Financial Results
We report below the Company's results for the six months ended 30 June 2018.
Revenues for the first half were up 6.3% to GBP9.25 million (H1 2017: GBP8.70 million) with the increase coming across all revenue streams in the business.
Whilst revenues are up on the comparative figures for 2017 and profits broadly in line, as in the prior year, results for the full year are again expected to be heavily weighted towards the second half.
The increase in revenue has come from all areas of the business but in particular, software licences and hardware revenues were up 21.1% to GBP1.29 million (H1 2017: GBP1.06 million) following the completion of the rollout of our next generation Gempay 3 payment terminal across our existing customer base, which started in the second half of 2017. We have now installed over 1,500 Gempay 3 terminals and have opportunities to significantly increase this number across new customers. Consultancy and licence maintenance revenues were up 11.2% to GBP1.96 million (H1 2017: GBP1.77 million), data services revenues were up 2.8% to GBP2.04 million (H1 2017: GBP1.98 million) and services and installation revenues up 1.7% to GBP3.95 million (H1 2017: GBP3.89 million).
This improved revenue performance resulted in increased gross profits of GBP4.34 million (H1 2017: GBP4.16 million) but was accompanied by a small drop in gross margin to 46.9% (H1 2017: 47.8%) due to the change in sales mix towards lower margin hardware sales.
Administrative expenses rose 5.8% to GBP4.17 million (H1 2017: GBP3.94 million) reflecting a GBP0.30 million increase in expensed research and development spend on our next generation retail systems offset by a GBP0.07 million reduction in other administrative expenses. Expensed research and development for the period was GBP1.69 million (H1 2017: GBP1.39 million) which is in line with the expense in the second half of 2017 of GBP1.55 million.
Earnings before interest, taxes, share-based payments, depreciation and amortisation ('adjusted EBITDA') was GBP0.98 million (H1 2017: GBP0.96 million).
Operating profit was GBP0.17 million (H1 2017: GBP0.22 million).
Net finance expense was GBP0.04 million (H1 2017: GBP0.05 million).
The underlying tax charge for the period was GBP0.00 million (H1 2017: credit GBP0.01 million).
Earnings per share for the period were 0.06p (H1 2017: 0.11p).
Balance sheet and cash flow
The balance sheet at 30 June 2018 remains strong. Net current assets were GBP4.10 million (31 December 2017: GBP4.64 million) and non-current liabilities were GBP0.85 million (31 December 2017: GBP0.91 million).
Investment in the core business continued with capitalised development costs of GBP0.82 million (H1 2017: GBP0.69 million, H2 2017: GBP0.73 million) focused on our next generation of retail systems.
Capital expenditure in the period was GBP0.23 million (H1 2017: GBP0.26 million).
Cash flow from operating activities in the half year was GBP1.98 million (H1 2017: GBP1.32 million) with the cash generated largely reinvested into the business as product development, capital expenditure or debt repayment. Cash balances at 30 June 2018 were GBP3.37 million compared to GBP2.89 million at 31 December 2017.
Outlook
We are pleased to report that revenues across the Group's activities for the first half show growth on the same period last year, that we have secured important existing contracts and won new customers and remain cash generative with a strong backbone of recurring revenue. We have continued to invest in the business with key hires and product development which has impacted short-term profit growth but with clear benefits for the longer term.
The Group is therefore overall in robust health and well positioned in the market. We are, as previously stated, also a second half weighted business, dependent on a small number of high value projects with lengthy sales cycles. The above considerations, and that our convenience sector EPOS product has become available to the market later than expected, leads us at this stage to expect sales for the year to be consistent with those of the previous financial year.
We are confident that the early actions we've taken in the marketplace mean we are well positioned for growth in 2019 and beyond.
Andrew Blazye
Non-Executive Chairman
19 September 2018
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Universe Group plc
Condensed Statement of Total Comprehensive Income
(unaudited)
for the 6 months ended 30 June
2018
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 9,246 8,700 19,622
Cost of sales (4,907) (4,539) (10,291)
----------- ----------- -------------
Gross profit 4,339 4,161 9,331
Administrative expenses (4,168) (3,941) (8,455)
----------- ----------- -------------
Operating profit 171 220 876
Net finance expense (see note
10) (43) (48) (97)
----------- ----------- -------------
Profit before taxation 128 172 779
Taxation - 80 (145)
----------- ----------- -------------
Profit and total comprehensive
income for the period 128 252 634
----------- ----------- -------------
Earnings per share (see note Pence Pence Pence
8)
Basic EPS 0.06 0.11 0.27
Diluted EPS 0.05 0.10 0.26
----------- ----------- -------------
Condensed Consolidated Statement of Changes in Equity (unaudited)
At start of period 23,161 22,494 22,494
Profit and total comprehensive
income for the period 128 252 634
Share issue net of expenses 2 - 6
Share-based payments 9 18 27
At end of period 23,300 22,764 23,161
=========== =========== =============
Universe Group plc
Condensed Consolidated Balance Sheet (unaudited)
as at 30 June 2018
30 June 30 June 31 December
2018 2017 2017
GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill and other intangibles 13,894 13,924 13,912
Development costs 3,914 3,089 3,447
Property, plant and equipment 2,234 2,289 2,074
20,042 19,302 19,433
--------- --------- ------------
Current assets
Inventories 1,441 1,340 1,409
Trade and other receivables 4,536 3,800 5,554
Cash and cash equivalents 3,374 3,406 2,885
9,351 8,546 9,848
--------- --------- ------------
Total assets 29,393 27,848 29,281
--------- --------- ------------
Current liabilities
Trade and other payables (4,615) (3,819) (4,560)
Current tax liabilities - - -
Borrowings (631) (562) (652)
(5,246) (4,381) (5,212)
Non-current liabilities
Borrowings (316) (411) (377)
Deferred tax (531) (292) (531)
(847) (703) (908)
Total liabilities (6,093) (5,084) (6,120)
--------- --------- ------------
Net assets 23,300 22,764 23,161
--------- --------- ------------
Equity
Share capital 2,323 2,334 2,322
Capital redemption reserve 4,588 4,588 4,588
Share premium 13,063 13,062 13,062
Merger reserve 2,269 2,269 2,269
Translation reserve (225) (225) (225)
Retained earnings 1,282 736 1,145
Total equity attributable to
equity shareholders 23,300 22,764 23,161
--------- --------- ------------
Universe Group plc
Condensed Consolidated Cash Flow Statement (unaudited)
for the six months ended 30 June
2018
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Net cash flows from operating activities
Profit before taxation 128 172 779
Depreciation and amortisation 802 722 1,463
Share-based payments 9 18 27
Net finance expense 43 48 97
----------- ----------- -------------
982 960 2,366
(Increase)/decrease in inventories (32) (256) (325)
Decrease/(increase) in receivables 1,018 1,396 (403)
(Decrease)/increase in payables 55 (629) 112
Interest paid (43) (48) (97)
Tax (paid)/received - (101) (42)
Net cash inflow from operating
activities 1,980 1,322 1,611
----------- ----------- -------------
Cash flows from investing activities
Deferred and contingent consideration
arising on the acquisition of
subsidiary undertakings - (55) (55)
Purchase of property, plant &
equipment (226) (257) (352)
Expenditure on capitalised product
development (820) (691) (1,417)
Net cash outflow from investing
activities (1,046) (1,003) (1,824)
----------- ----------- -------------
Cash flow from financing activities
Proceeds from issue of shares 2 - 6
Repayments of obligations under
finance leases (367) (321) (316)
Repayments of loans (80) - -
Net cash outflow from financing
activities (445) (321) (310)
----------- ----------- -------------
Increase/(decrease) in cash and
cash equivalents 489 (2) (523)
Cash and cash equivalents at
beginning of period 2,885 3,408 3,408
Cash and cash equivalents at
end of period 3,374 3,406 2,885
----------- ----------- -------------
Universe Group plc
Notes to Condensed Consolidated financial statements for six
months ended 30 June 2018
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 2018
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 2017.
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
2017 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
2017.
5. Turnover analysis
All turnover arises within the HTEC Solutions
business segment.
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Software licences and hardware 1,289 1,064 3,696
Service and installations 3,954 3,886 7,896
Data services 2,039 1,984 4,039
Consultancy and license maintenance 1,964 1,766 3,991
9,246 8,700 19,622
----------- ----------- -------------
6. Operating profit and adjusted
EBITDA
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Revenue 9,246 8,700 19,622
Cost of sales (4,907) (4,539) (10,291)
----------- ----------- -------------
Gross profit 4,339 4,161 9,331
Administrative expenses (4,168) (3,941) (8,455)
----------- ----------- -------------
Operating profit 171 220 876
Add back:
Depreciation 431 352 713
Amortisation 371 370 750
Share-based payments 9 18 27
Exceptional costs relating to
management changes - - 402
Adjusted EBITDA 982 960 2,768
----------- ----------- -------------
7. Taxation
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Current tax:
Current year charge/(credit) - 14 -
Adjustments to tax charge in
respect of previous periods - (94) (94)
----------- ----------- -------------
- (80) (94)
Deferred tax:
Current year - - 227
Adjustments to tax charge in
respect of previous periods - - 12
----------- ----------- -------------
- - 239
Total tax (credit)/charge - (80) 145
----------- ----------- -------------
8. Earnings per share
Earnings per share is calculated by reference to the results
and the weighted average of 232,277,000 shares in issue during
the period (H1 2017: 231,598,935, FY 2017: 231,859,551). Diluted
earnings per share is calculated by reference to the results
and the weighted average of 237,105,213 shares in issue during
the period (H1 2017: 241,384,108, FY 2017: 239,718,807). The
number of shares in issue at 30 June 2018 was 232,348,935.
9. Operating segments
The Group has one business segment. All material operations
and assets are in the UK. The trading segment is HTEC Solutions
('Solutions'). Solutions provides hardware, software, payment
and service solutions into the UK petrol and convenience store
markets and loyalty solutions across Europe.
6 months ended 30 June 2018
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue - all external 9,246 - 9,246
----------- ----------- -------------
Gross profit 4,339 - 4,339
Segment expenses (3,960) (208) (4,168)
----------- ----------- -------------
Segmental operating profit 379 (208) 171
Net finance expense (43)
Taxation -
Profit for the period 128
-------------
6 months ended 30 June 2017
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue - all external 8,700 - 8,700
----------- ----------- -------------
Gross profit 4,161 - 4,161
Segment expenses (3,770) (171) (3,941)
----------- ----------- -------------
Segmental operating profit 391 (171) 220
Net finance expense (48)
Taxation 80
Profit for the period 252
-------------
Year ended 31 December 2017
Solutions Corporate Total
GBP'000 GBP'000 GBP'000
Revenue - all external 19,622 - 19,622
----------- ----------- -------------
Gross profit 9,331 - 9,331
Segment expenses (8,120) (335) (8,455)
----------- ----------- -------------
Segmental operating profit 1,211 (335) 876
Net finance expense (97)
Taxation (145)
Profit for the period 634
-------------
10. Net finance expense
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017
GBP'000 GBP'000 GBP'000
Release of provision for contingent
consideration - - 3
Interest receivable on bank deposits 6 4 8
Finance income 6 4 11
----------- ----------- -------------
Interest payable on bank loans
and overdrafts (5) (1) (10)
Interest payable on finance leases (31) (51) (80)
Other interest (13) - (18)
----------- ----------- -------------
Finance expense (49) (52) (108)
Net finance expense (43) (48) (97)
----------- ----------- -------------
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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR EAKNPFDKPEFF
(END) Dow Jones Newswires
September 19, 2018 02:00 ET (06:00 GMT)
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