LONDON (Alliance News) - Payment solutions provider Universe Group PLC Monday reported an increase in profit and revenue for the full-year, boosted by a combination of acquisitions, growth from existing businesses and investment in new products.
The company posted a pretax profit of GBP1.2 million for 2012, up from GBP1.0 million, as revenue climbed to GBP15.9 million from GBP11.9 million a year earlier.
Universe said sales from its HTEC trading division, which provides payment solutions as well as integrated IT services, increased 19% to GBP14.1 million from GBP11.9 million.
During the period, the company acquired Indigo Retail Holdings Limited and the trade of Retail Service Team Limited for a combined GBP690,000. These acquisitions added GBP1.8 million to group sales and helped push the company's overall sales for the second-half to GBP9.3 million - 41% ahead of the first-half.
However, Universe said the main reason for the increase in sales in the second-half was continuing high levels of project work from existing customers and the deployment of its Gemini Payment Services terminal. The company deployed 800 terminals in 2013 while it has confirmed orders for a further 1,000 for 2014.
Universe said a mix of business and pressure on service margins contributed to a decline in the gross profit margin down to 35% from 37%.
Looking ahead the company said the high level of project work in 2013 may not be repeated this year, however with a full-year of trading from its acquisitions, it expects to see growth in revenue in the years ahead. The company also plans to target the petrol and convenience store markets.
"Double-digit growth in sales, operating profit and profit before tax arose from a pleasing combination of organic growth, acquisitions and a high level of project work," Chairman Robert Goddard said in a statement.
"Our customers are investing in their businesses and continuing to develop the programmes that we manage for them. The confidence that they have shown in HTEC, in turn gives us confidence in the further profitable growth of the group." he added.
The stock was trading flat at 7.00 pence Monday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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