Trading Update

RNS Number : 5186A

UniVision Engineering Ltd

12 September 2018

 

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 September 2018

UniVision Engineering Limited

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

Trading update  

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 the following trading update ahead of the Annual General Meeting to be held in Hong Kong on 20 September.

Trading in the first four months of the current financial year, is significantly ahead of the corresponding period last year.  The increase in both revenue and profitability had been predicted by the Board and had been highlighted in our trading update in April 2018 and again in our final results announcement and the Annual Report and Accounts published in August 2018.

As we have announced previously, the step change is due primarily to the major long-term installation contract with the MTR Corporation ("MTRC") in Hong Kong, which commenced installation in earnest in January 2018, following testing, having been signed in May 2017.  The current value of this contract is HKD407.3 million (£39.7 million) spread over the period until its planned completion in November 2023.    

Unaudited revenue for the Group, for the four months ended 31 July 2018 is approximately £4.5m (4 months to 31 July 2017: £1.5m). There was no contribution from MTRC in the comparable period last year.  The Directors expect this revenue run rate to continue for the rest of the financial year ending 31 March 2019.  Unaudited profit before tax has also increased significantly over the same period.

As mentioned in the Chairman's Statement in the 2018 Annual Report, as a result of the significant increase in work from the MTRC contract, the Group has 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").  This does not relate to any MTRC contracts, or any potential future work with MTRC and the Company remains qualified to tender for new contracts with MTRC if requested. As we have announced previously, the effect of this temporary suspension is insignificant given the Group's current workload, with MTRC in particular, however, the Company is applying to have this suspension lifted.

The Directors look forward to reporting further on the Group's progress in our interim results, which we anticipate releasing in November 2018.

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)	Tel:  [phone] www.sicapital.co.uk

Nick Emerson

 

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