LONDON (Alliance News) - Universe Group PLC on Tuesday said pretax profit and revenue both dipped in 2015, though it said it believes it is well positioned for 2016.
Universe, which provides point-of-sale and payments systems, said its pretax profit for the year to the end of December slipped to GBP1.7 million from GBP1.8 million a year earlier, while revenue declined marginally to GBP20.3 million from GBP20.8 million. The profit was hit by financing costs rising and finance income declining.
The fall in revenue resulted from the company ceasing work on a number of low-margin contracts in late 2014. While this depressed sales, Universe said its gross margin for the year improved to 33% from 31% as a result of the change in focus.
Universe said its results were heavily-weighted to the second half, in line with its expectations, but said it did secure a major contract in the second half with convenience store operator Conviviality PLC.
Universe said it will focus on continuing to expand its presence in the convenience store sector in 2016 and will work on developing its position in the petrol forecourt market.
"Universe remains well placed for further progress in 2016. We will continue to develop our established position in the petrol forecourt market and seek to achieve further strong growth in the convenience store sector. At the same time, we will look for opportunities to enter additional retail verticals," said Chairman Robert Goddard.
Universe shares were down 12% to 8.65 pence early Tuesday, one of the worst performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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