LONDON (Alliance News) - Universe Group PLC Tuesday said that product roll-outs that were delayed into the second-half will help it to meet market expectations, as it posted a lower profit for the half-year to the end of June.
Universe develops point of sale, payment and online loyalty systems.
Universe posted a pretax profit of GBP226,000, down from GBP716,000, as revenue rose to GBP8.8 million from GBP6.6 million but this was offset by higher cost of sales and administrative expenses due to two acquisitions during the year.
Gross margin fell to 29.1% from 37.9%. This was as a result of significant investment into products, delays in revenue generation, and low margins on project work that followed its acquisition of Retail Service Team Limited in 2013. Universe said it has "significantly" restructured this business to reduce its cost base and terminate some low margin contracts, and it has now been fully absorbed into its main operating entity.
During the first-half the company saw new orders for payment terminal roll-outs that will be fulfilled in the second-half.
Universe said that whilst its first six months had been characterised by delays, product roll-outs that were delayed are now being delivered, and several significant software and service projects are scheduled to complete before the end of the year.
Shares in Universe were trading up 1.6% at 5.84 pence Tuesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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