UniVision appoints major sub-contractor

RNS Number : 2623T

UniVision Engineering Ltd

13 November 2019

 

13 November 2019

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

UniVision Engineering Limited

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

UniVision appoints major sub-contractor 

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 signed a sub-contract agreement with China Railway Engineering (Hong Kong) Limited ("CREHK" ) and China Railway Wuhan Electrification Engineering Group Limited ("CRWE") Joint Venture ("CREHK-CRWE Joint Venture") to work with the Group to deliver its existing contractual obligations

CRWE is a subsidiary of China Railway Group Ltd ("CRG"). CRG, listed in both Shanghai and Hong Kong, is one of the largest construction companies in the world and employs more than 250,000 employees. CRWE, via the CREHK-CRWE Joint Venture, will be able to devote significant manpower, finance and other resources to help the Group meet its existing contractual obligations in a more efficient and cost-effective manner.

It is anticipated that the effect of working with the CREHK-CRWE Joint Venture on existing contracts, rather than the wide range of smaller sub-contractors currently being used, will create a positive impact on UniVision's contractual Gross Margins

The Directors also believe that working with CRG will benefit both UniVision and its customers, as well as freeing up other current sub-contractors to work with the Group on other potential new projects that it may tender for in the future.

Stephen Koo, Chairman commented:

"We are delighted to have signed this agreement with such a strong partner.  We believe this strategic partnership will bring significant advantages to UniVision in that we can utilise CRWE's sourcing capability and financial strength with both current and other potential customers.  Whilst this is the first time we have worked with CRG, we are aware that, as one of the world's largest construction and engineering companies, other opportunities may present themselves in the future. We are looking forward to getting started with them as soon as possible."

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

UniVision Engineering Limited	Tel: [phone]
Stephen Koo, Chairman	www.uvel.com
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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