Loan Agreement

RNS Number : 6180S

UniVision Engineering Ltd

12 March 2019

 

RNS ANNOUNCEMENT: The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For immediate release: 12 March 2019

UniVision Engineering Limited

("UniVision", the "Company" or the "Group")

 Loan Agreement  

UniVision (AIM: UVEL), the Hong Kong based group whose principal activities are the supply, design, installation and maintenance of closed-circuit television (CCTV) and surveillance systems, and the sale of security related products, announces that it has entered into a loan agreement with UniVision Holdings Limited to borrow HKD 3 million ("Loan Agreement").

Background

In the Chairman's Statement contained within the 2018 Annual Report (and in the last Interim Results, released on 7 December 2018), the Company commented that, as a result of the significant increase in work from the MTRC contract, the Group had been temporarily suspended from tendering for additional new government contracts by the Hong Kong Government Works Branch under the management of Electrical and Mechanical Services Department ("EMSD").  As we have announced previously, the effect of this temporary suspension has been insignificant, given the Group's current workload, with MTRC in particular.

However, the effect of entering into this Loan Agreement is to provide sufficient asset backing for the Group, to allow EMSD to lift this temporary suspension and allow the Group, once again, to be able to tender for new government contracts offered by the Hong Kong Government Works Branch.

For the avoidance of doubt, this temporary suspension did not relate to any work that the Group continues to undertake on the replacement works of the Closed-Circuit Television (CCTV) systems for numerous railway lines of MTRC in Hong Kong. 

Terms of the Loan Agreement

The Company has entered into an HKD 3 million, interest free, loan with UniVision Holdings Limited.  UniVision Holdings Limited owns 47.9% of the issued share capital of the Company and is wholly owned by Stephen Koo.  Including a previous loan of HKD1.2 million, made in year 2017, the total amount owed to UniVision Holding Limited is now HKD 4.2 million. It is a condition of EMSD that the HKD 3 million loan announced today may not be reduced or repaid to the lender without EMSD's prior permission.

Stephen Koo, Executive Chairman, commented:

"I am delighted that this loan to the Company has enabled it to resume tendering for new work from the Hong Kong Government Works Branch as it has been able to do in the past."

For further information visit www.uvel.com or contact:

UniVision Engineering Limited	Tel: [phone]
Stephen Koo, Chairman	www.uvel.com
Chun Pan Wong, Chief Executive Officer
Danny Kwok Fai Yip, Finance Director
Nicholas Lyth, Non-Executive Director	Tel: [phone]
SPARK Advisory Partners Limited                                        (Nominated Adviser)	Tel: [phone]
Mark Brady / Neil Baldwin	www.sparkadvisorypartners.com
SI Capital Limited (Broker) Nick Emerson	Tel:  [phone] www.sicapital.co.uk

 

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