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Final Results for the year ended 31 December 2020

30 Apr 2021 07:00

RNS Number : 1493X
Universe Group PLC
30 April 2021
 

30 April 2021

AIM: UNG.L

Universe Group plc

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

 

 

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

 

Universe Group plc (AIM: UNG.L), a leading developer and supplier of retail management solutions, payment and loyalty systems, is pleased to announce its audited results for the year ended 31 December 2020.

Highlights

· Total revenues £19.75 million (2019: £22.44 million) - decrease reflecting COVID down-turn in customers' fuel retailing activities with recovery expected in 2021

· Gross profit margin at 43.5% (2019: 51.8%) - reflecting the change in product mix

· Adjusted EBITDA £1.94 million (2019: £3.89 million)

· Loss for the year £0.62 million (2019 restated: loss of £1.03 million)

· Diluted loss per share 0.24p (2019 restated: 0.40p)

· Net debt at year end £4.69 million (31 December 2019: net cash £0.37 million) resulting from investment in inventories, £4.82 million at 31 December 2020 (31 December 2019: £1.13 million)

· Renewed material loyalty customer, a major international oil and gas group, in Europe-wide 5-year deal post period end

· Maintained service levels during pandemic to ensure clients kept trading in the vital food and fuel retailing sectors

· Extended payments offering and won new payment clients in the year

· Won material payments contract renewal with substantial grocery retailer, currently in pilot

· Completed the integration of Dublin-based Celtech, a class-leading developer of cloud-based retail and wholesale management solutions, acquired in April 2019

 

Andrew Blazye, Executive Chairman of Universe, commented:

"As 2020 unfolded, the Group took all necessary steps to sustain its customers, employees and operations, in what was a very unpredictable environment.  I am pleased to say that we closed the year with a business which, by delivering commendable financial results, has proven its value to the marketplace in the toughest of times.

"By winning new, multi-year contracts with key payment clients and being awarded a major contract extension for a loyalty customer, it is clear our proposition remains compelling and full of potential.

"During the pandemic, we saw a delay in the rollout of a payments project for a substantial grocery customer, which is now in pilot, and the slowdown of some early-stage engagement in our latest generation of retail management solutions.

"However, we believe this slowdown will reverse as the UK recovers from the pandemic restrictions and convenience retailers regain their management bandwidth to install more advanced, insightful software that our latest offerings provide.

"Through high customer service levels and new multi-year contract wins, current management has successfully navigated a very difficult year and so has laid the foundations for a promising future. We look forward to a fuller update on strategy and outlook, led by our new CEO and CFO, at the forthcoming AGM."

 

For further information:

 

Universe Group plc

Andrew Blazye, Executive Chairman

Jeremy Lewis, Chief Executive Officer

 

 

T: +44 2380 689 510

finnCap

Henrik Persson (Corporate Finance)

Richard Chambers (Corporate Broking)

 

 

T: +44 2072 200 500

 

IFC Advisory

 T: +44 2039 346 630

Tim Metcalfe / Graham Herring / Florence Chandler

 

 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014. Upon publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

CHAIRMAN'S STATEMENT

 

Introduction

 

I am pleased to announce our results for the year ended 31 December 2020.

As the financial year started, the coronavirus pandemic accelerated into the first of three lockdowns. The executive team worked with the Department of Business, Innovation and Strategy to establish our status as an Essential Service Provider ("ESP"), due to our material market share of the UK's convenience and fuel forecourt estates. This enabled the Company to continue to deploy its fleet of engineers and keep its call centre running 24/7, even while most employees were working from home.

We also needed some staff working at our Southampton site, managing spares and supplying engineers with the equipment required to keep our customers up and running. It is testimony to the resilience and hard work of the whole business that our core service metrics remained high during the ongoing coronavirus crisis.

Like many companies, our business started the year with several objectives, which had to be revisited and re-planned as the pandemic unfolded. As we closed the year, we managed to deliver revenue for the second half which was in line with that of the first.  A key payments contract planned for the second half is now expected to roll out in mid-2021 and the revenues recognised in 2021. The project is now making good progress and is currently in the live customer pilot phase.

We closed some valuable new business in the first half, which rolled out in the second part of year, including the addition of a new payment services client. We also completed the integration of the Company's acquisition of Celtech, advancing the Group's retail management solutions portfolio considerably and improving the breadth and depth of our proposition.

The Company has maintained the development programme for our core products and invested in our service capabilities, which have been adapted to work throughout the pandemic.  The Group is ready for the return of a more normal working environment as and when it comes about.

Group revenues at £19.75 million (2019: £22.44 million) were down 12.0% reflecting a COVID down-turn in customers' fuel retailing activities, with recovery expected in 2021. The change in revenue mix in the business, with a reduction in consultancy and software license revenue, resulted in our gross margin decreasing to 43.5% (2019: 51.8%).

Adjusted earnings before interest, taxes, depreciation, amortisation, administration expenses resulting from acquisition costs and share-based payments 'Adjusted EBITDA' (see note 3) reduced by 50.1% to £1.94m (2019: £3.89 million). In line with revenue, Group administrative costs were down by 11.7% to £8.68 million (2019: £9.83 million).

Operating losses totaled £0.41 million (2019: profit of £1.43 million before impairment of development costs of £2.75m) which resulted from the impact of both lower revenues and gross profit margin, partially offset by the reduction in administrative costs.

Cash and cash equivalents less bank borrowings ended the year in a net debt position of £4.69 million (31 December 2019: net cash £0.37 million) due primarily to an increase in year-end inventories of £3.68m to £4.82 million (31 December 2019: £1.13 million) required to service a material contract win, the fulfilment of which has been delayed into 2021.

 

Overview

 

Despite difficult trading conditions, the Group remains on track to deliver a substantial contract to replace the outdoor payment terminals for a key grocery customer, as part of a project that is scheduled to finish in mid-2021.

During the year, we also closed a material new contract for our payments business.  Our latest Gempay payments device was selected as a preferred solution across the network of a large fuel retailer in the UK.  This is a 5-year contract won following a competitive tender process and is for multiple payment operations, including the provision of payment switching, merchant services and a Private Wide Area Network solution. This contract also sees the introduction of Point-to-Point-Encryption across the terminal estate, greatly increasing transaction security and reducing the cost of Payment Card Industry ("PCI") compliance for retailers.

In the area of loyalty, the Group also secured a significant 5-year extension to a contract with a major international oil group for the provision of real-time loyalty services across their European forecourt estate, in a deal signed in April 2021.

 

Staff

 

Through the year, the Group employed an average of 213 people (2019: 241) in the UK, and a further 20 people (2019: 22) in Ireland. As stated above, our position as an ESP, has meant that we have continued to run the business as normally as possible, and for that we are hugely grateful for the adaptability and fortitude of our employees.  During the year, a number of employees were furloughed and sadly we had to reduce the size of the team by a small number in the second half.  For all staff, whether working at home, in our offices or on the road supporting on-site equipment, their work has been exemplary.

 

Board

 

Post the period end we announced that Jeremy Lewis, Chief Executive Officer, had decided to leave the Group to pursue other opportunities outside of the public markets. I am very grateful to Jeremy for his excellent leadership and steering us through the difficult trading conditions caused by the pandemic in 2020.

 

On 12 March 2021 we announced that Neil Radley would be joining the Group as our new Chief Executive Officer from 1 May 2021. Neil brings tremendous strategic, M&A and finance experience from a range of positions across our markets, particularly the highly regulated and technically complex payments space.

On 23 April 2021 we announced the appointment of Adrian Wilding as Chief Financial Officer and Graham Bird as a Non-Executive Director. Adrian Wilding is an experienced CFO with experience in B2B and B2C financial services, with experience of working in both listed and private equity-led businesses. Adrian has worked with the Company on a consultancy basis in recent weeks and will formally join the board on 1 May 2021. Carmel Warren, previously interim CFO, leaves with the board's thanks for her contribution as interim CFO.

Graham Bird is a chartered accountant, having qualified with Deloitte, and has over twenty years' experience in corporate finance and public markets. He is currently the Chief Financial Officer of Escape Hunt plc, the largest international operator of escape rooms, which is quoted on AIM. From 2015 to 2019, he served as a Managing Director at Gresham House plc, where, in addition to supporting the growth of Gresham House plc, he was responsible for establishing and managing the successful strategic equity business unit which focuses on both quoted and unquoted equity investments using the principles and practices of private equity.

 

COVID-19 update

 

The health and safety of our staff and customers remains our priority and we continue to extend our sympathies to all those in our business community who have lost loved ones as a result of the pandemic.

With the current sustained demand for local shopping, the convenience stores sector is one that has shown resilience to the pandemic, with some increases in both footfall and basket size.  However, the pressure of operational demands and on their management capacity, has delayed some retailers' ability to implement an upgrade of their retail systems.  Consequently, some projects for our ab-initio retail management solution have been delayed into 2021, despite much positive commercial engagement and proof of concept work.

During the second and third lockdowns, our role as a designated ESP required us to ensure that our stock of spares, fleet of vans and staff of engineers were available 24/7 for our customers. Directed and supported by our call centre staff, almost all of whom were working from home, we maintained our service levels.

As previously stated, in some instances our engineers had to temporarily postpone the processing of ad hoc hardware and software upgrades, as well as new installations that are not deemed to be critical in nature. While some of our scheduled upgrades still went ahead, any postponed work will be rescheduled to when restrictions are reduced enough for them to safely resume.

It should be noted that we do not expect any material customer losses. We continue to run the Company on a prudent basis with robust cash conservation measures in place, using the furlough programme as much as we deemed appropriate. During such a period of exceptional trading challenges, we are proud of the way the Group has adapted its processes and working practices.

 

Summary and outlook

 

As 2020 unfolded, the Group took all necessary steps to sustain its customers, employees and operations, in what was a very unpredictable environment.  I am pleased to say that we closed the year with a business which, by delivering commendable financial results, has proven its value to the marketplace in the toughest of times.

By winning new, multi-year contracts with key payment clients and being awarded a major contract extension for a loyalty customer, it is clear our proposition remains compelling and full of potential.

During the pandemic, we saw a delay in the rollout of a payments project for a substantial grocery customer, which is now in pilot, and the slowdown of some early-stage engagement in our latest generation of retail management solutions.

However, we believe this slowdown will reverse as the UK recovers from the pandemic restrictions and convenience retailers regain their management bandwidth to install more advanced, insightful software that our latest offerings provide.

Through high customer service levels and new multi-year contract wins, current management has successfully navigated a very difficult year and so has laid the foundations for a promising future. We look forward to providing a fuller update on strategy and outlook, as led by Neil and Adrian, at the forthcoming AGM.

 

Andrew Blazye

Executive Chairman

29 April 2021

 

 

Extracts from the Strategic Report

 

Principle activity

 

Product focus on real-time Retail Management Solutions ("RMS")

 

The Group specialises in comprehensive, real-time, mission-critical solutions including RMS, card payment terminals and services, customer engagement, forecourt site controllers, outdoor payment terminals, automatic-number-plate-recognition and handheld devices.

The Group's unique cloud-based, single database, architecture allows a head office user to see transactions on any site as they happen, in real-time.  This also ensures integrity of master data and allows full control over all aspects of retail operations.

 

Key target markets are convenience and forecourt retailers

 

The Group targets businesses in retail, predominantly convenience stores, wholesalers and fuel forecourts. The Group designs, develops and supports RMS, payment and loyalty systems for the UK and Ireland petrol forecourt and convenience markets.  These can be provided as a comprehensive, fully managed offering or as discrete products, according to customer needs.

The Group's activities generate four distinct revenue streams from:

Data services: Our payments switch and associated services, which accept, process, store and transmit credit card information are accredited at the highest level of the PCI standards.

• Software licences and hardware: This income stream comes from the sale of products, such as RMS. Our existing customer base brings new revenues but also typically adds additional recurring revenues from support contracts. In addition to securing new customers, there are regular opportunities to refresh the products on existing customer estates.

• Consultancy and software maintenance: Our software development teams provide product development, consultancy services and product support to customers, with the teams focused respectively on products and hosted solutions. Our data centres also maintain and support hosted solutions for our cloud-based products covering management information, loyalty and as an agent for payment processing. They deliver high uptime and excellent transaction processing speeds for our customer base.

• Service and installations: The sale of our software and hardware products typically leads to an additional recurring revenue stream through the provision of support services and customer installations. We provide industry-leading customer service levels, with 24-hour helpdesk support, a nationwide field service and a specialised repair and refurbishment team, all of which help to promote close, long-term customer relationships.

Across each of these revenue streams, innovation and high levels of customer care are central to the Group's success.

 

Strategy and business plan

 

We intend to increase shareholder value by being the leading solutions partner to retailers in our chosen verticals, supplying customers with our market-leading, innovative systems for RMS, payment and loyalty operations.  These systems are real-time, mission-critical and data rich, and our customers rely on us to keep them trading at all times.  Accordingly, professional and timely support from our data centre teams, field engineering force and helpdesk professionals continue to remain a core part of what we do.

Opportunities to acquire new businesses are reviewed on a regular basis, where they assist in extending penetration within addressable markets, add complementary technology or broaden geographic reach.  During 2020, the Board did not consider it appropriate to make any strategic acquisitions.

 

Business and product development

 

Retail management solutions

The Group's ab-initio platform is a class-leading, cloud-based RMS that gives large, multi-site operators a uniquely powerful modular suite operating in real time and allowing them to control all aspects of their business with full reporting, insights and analytics.  As such, it meets the needs of the Group's larger customers and broadens the customer base in the UK and Ireland with additional high-profile retailers such as Bestway and several Co-ops.

In addition to this, the Group continued its development of its own next generation back-office solution for single sites, Callisto, as a complementary product.

Payments

The Group provides payment processing services via its Gemini Payment Services ("GPS") platform, delivered as a highly resilient, scalable platform, backed by a 24/7 service capability. The GPS offering has been enhanced for the forecourt market to create own unique IP. The Group now process over £110 million of transactions each week, with transaction volumes around 150 million per year.

The Group also offers integrated payment solutions for pay-at-pump, instore payment terminals and direct point of sale integration as well as forecourt specific capabilities for unattended sites and next-gen mobile payment.  The Group offers these payment services while maintaining the highest level of payment accreditations, being PCI-DSS Tier 1 and has been certified since 2008.

Customer engagement

The Group provides and host the points engine and associated services that underpins one of the world's largest oil company's consumer loyalty schemes across five European countries. In addition, the retail management solution ab-initio, includes a sophisticated retail loyalty module addressing both the convenience and fuel markets and today powers the loyalty operations of certain Co-ops.

 

Summary

 

This year has been an exceptionally challenging one, profoundly affected as it was by the global pandemic. Despite this, the Group reacted swiftly and soon found a new way of working to accommodate both customers and staff. The resultant market uncertainty did slow down some customer decision making and so led to some project delays.

However, a major payment project won in the year is now underway in pilot and moreover, the Group recently signed a 5-year contract renewal for its loyalty services. Furthermore, new payment customers were signed and launched in the year.

The financial results achieved indicate a successful negotiation of a difficult year and the above-mentioned contract signings bode well for the future prosperity of the Group.

 

Jeremy Lewis

Chief Executive Officer

29 April 2021

 

 

 

Consolidated Statement of Total Comprehensive Income

For the year ended 31 December 2020

 

Consolidated Statement of Total Comprehensive Income

 

 

 

 

 

 

2020

2019

 

 

Note

£'000

£'000

 

 

 

 

Restated*

Revenue

 

2,4

19,750

22,441

Cost of sales

 

 

(11,156)

(10,824)

Gross profit

 

 

8,594

11,617

Administrative expenses

 

 

(8,682)

(9,830)

Operating (loss)/profit

 

 

(88)

1,787

Adjusted administrative items:

 

 

 

 

Acquisition costs expensed

 

 

(30)

(159)

Impairment of development costs following acquisition of Celtech

 

 -

(2,751)

Amortisation of acquired intangibles

 

 

(290)

(242)

Share-based payments

 

 

 -

40

 

 

 

(320)

(3,112)

Total administrative expenses

 

 

(9,002)

(12,942)

Operating loss

 

3

(408)

(1,325)

Finance income

 

 

10

19

Finance expense

 

 

(302)

(279)

Loss before taxation

 

 

(700)

(1,585)

Taxation

 

 

85

558

Loss for the year

 

4

(615)

(1,027)

 

 

 

 

 

 

 

 

 

 

Total comprehensive expense attributable to ordinary shareholders

 

 

(615)

(1,027)

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to the ordinary equity holders of the parent

Pence

Pence

Basic EPS

 

5

(0.24)

(0.41)

Diluted EPS

 

5

(0.24)

(0.40)

* Further details of the prior year restatement are provided in Note 6

 

Consolidated Statement of Changes in Equity

For the year ended 31 December 2020

 

Share capital

Capital redemption reserve

Share premium

Merger reserve on acquisition

Translation reserve

Profit and loss account

Total equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2019

2,323

4,588

13,062

2,269

(225)

1,965

23,982

Loss for the year

 -

 -

 -

 -

 -

(1,466)

(1,466)

Issue of share capital

279

 -

959

 -

 -

 -

1,238

Share-based payments

 -

 -

 -

 -

 -

(40)

(40)

Prior year adjustment

 

 

 

 

 

439

439

At 31 December 2019

2,602

4,588

14,021

2,269

(225)

898

24,153

At 1 January 2020

2,602

4,588

14,021

2,269

(225)

898

24,153

Loss for the year

 -

 -

 -

 -

 -

(615)

(615)

Issue of share capital

9

 -

 -

 -

 -

 -

9

Share-based payments

 -

 -

 -

 -

 -

 -

 -

At 31 December 2020

2,611

4,588

14,021

2,269

(225)

283

23,547

 

 

Consolidated Balance Sheet

As at 31 December 2020

 

 

 

 

2020

2019

Company number 02639726

 

 

£'000

£'000

 

 

 

 

Restated*

Non-current assets

 

 

 

 

Goodwill and other intangibles

 

 

18,097

18,387

Development costs

 

 

3,541

2,645

Property, plant and equipment

 

 

1,252

1,255

Right-of-use assets

 

 

3,394

3,383

 

 

 

26,284

25,670

Current assets

 

 

 

 

Inventories

 

 

 4,816

1,128

Trade and other receivables

 

 

 4,691

5,253

Current tax asset

 

 

 432

452

Cash and cash equivalents

 

 

 1,829

6,407

 

 

 

 11,768

13,240

Total assets

 

 

 38,052

38,910

Current liabilities

 

 

 

 

Trade and other payables

 

 

(7,136)

(7,719)

Borrowings

 

 

(3,324)

(3,115)

Deferred consideration

 

 

 -

(274)

 

 

 

(10,460)

(11,108)

Non-current liabilities

 

 

 

 

Borrowings

 

 

(3,191)

(2,926)

Deferred tax

 

 

(854)

(723)

 

 

 

(4,045)

(3,649)

Total liabilities

 

 

(14,505)

(14,757)

 

 

 

 

 

Net assets

 

 

23,547

24,153

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

 

2,611

2,602

Capital redemption reserve

 

 

4,588

4,588

Share premium

 

 

14,021

14,021

Merger reserve

 

 

2,269

2,269

Translation reserve

 

 

(225)

(225)

Retained earnings

 

 

283

898

Total equity attributable to equity shareholders

 

 

23,547

24,153

 

*Further details of the prior year restatement are provided in Note 6

 

 

Consolidated Cash Flow Statement

For the year ended 31 December 2020

 

 

 

2020

2019

 

 

 

£'000

£'000

Net cash flows from operating activities

 

 

 

 

Loss before taxation

 

 

(700)

(1,585)

Depreciation and amortisation

 

 

2,891

2,341

Impairment of capitalised development costs following the acquisition of Celtech

 -

2,751

Share option charge

 

 

 -

(40)

Finance income

 

 

(10)

(19)

Finance expense

 

 

302

279

 

 

 

2,483

3,727

(Increase)/decrease in inventories

 

 

(3,688)

82

Decrease in receivables

 

 

692

1,290

(Decrease)/increase in payables

 

 

(713)

2,337

Interest received

 

 

10

19

Interest paid

 

 

(235)

(233)

Tax received

 

 

236

351

Net cash (outflow)/inflow from operating activities

 

 

(1,215)

7,573

Cash flows from investing activities:

 

 

 

 

Acquisition of subsidiary undertakings

 

 

(274)

(2,855)

Purchase of property, plant and equipment

 

 

(239)

(287)

Expenditure on capitalised product development

 

 

(1,597)

(1,922)

Net cash outflow from investing activities

 

 

(2,110)

(5,064)

Cash flow from financing activities:

 

 

 

 

Proceeds from issue of shares

 

 

9

119

Repayments of obligations under finance leases

 

 

(784)

(853)

Repayments of obligations under operating leases

 

 

(909)

(902)

Repayment of loans

 

 

(1,175)

(438)

New loans raised

 

 

1,606

3,255

Net cash (outflow)/inflow from financing activities

 

 

(1,253)

1,181

(Decrease)/increase in cash and cash equivalents

 

 

(4,578)

3,690

Cash and cash equivalents at beginning of year

 

 

6,407

2,717

Cash and cash equivalents at end of year

 

 

1,829

6,407

 

 

Notes to the Financial Statements

 

1. General information

 

The financial information set out in this document does not constitute the Company's statutory accounts for 2020 or 2019. Statutory accounts for the years ended 31 December 2020 and 31 December 2019 have been reported on by the Independent Auditors. The Independent Auditors' Reports on the Annual Report and Financial Statements for each of 2020 and 2019 were unmodified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

Their report drew attention to matters reported in the 2020 Directors Report relating to going concern namely that the Group has invested significantly in its inventory levels at year end to service a large contract for the sale of outdoor payment terminals, an order which also incorporates the Group's bespoke software solution. Full customer settlement is expected to take place during Q2 2021 subject to the normal pilot and roll-out arrangements which are currently in train. Both parties are aware that progress could be delayed by issues that may arise ordinarily during roll-out.

 

Mindful of the impact that any significant delays may have on ongoing working capital requirements, the directors are working with lenders to secure additional short-term funding, if the need arises. Although the directors expect that such funding would be provided if required - particularly as the Group is holding the outdoor payment terminals in inventory as security - the facilities are not yet in place, as they are not currently required, and as such the timing of the execution of the contract is a material uncertainty related to going concern. The Auditors' opinion is not modified in respect of this matter.

 

Statutory accounts for the year ended 31 December 2019 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2020 will be delivered to the Registrar in due course and will be available from the Company's registered office at George Curl Way, Southampton International Park, Southampton, SO18 2RX and from the Company's websitewww.universeplc.com.

The financial information set out in these results has been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The accounting policies adopted in these results have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2020. The principal accounting policies adopted are unchanged from those used in the preparation of the statutory accounts for the period ended 31 December 2019.

 

 

2. Turnover analysis

Year to 31 December 2020

Software licences and hardware

Service and installations

Data services

Consultancy and software licence maintenance

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Primary Geographic Markets

 

 

 

 

 

United Kingdom

3,007

7,077

4,524

1,798

16,406

Belgium

 -

 -

1,848

1,490

3,338

Ireland

 -

6

 -

 -

6

 

3,007

7,083

6,372

3,288

19,750

 

 

 

 

 

 

Year to 31 December 2019

Software licences and hardware

Service and installations

Data services

Consultancy and software licence maintenance

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Primary Geographic Markets

 

 

 

 

 

United Kingdom

2,862

7,772

4,579

2,344

17,557

Belgium

 -

 -

1,748

3,115

4,863

Ireland

 -

6

15

 -

21

 

2,862

7,778

6,342

5,459

22,441

 

 

3. Operating profit and adjusted EBITDA

 

 

 

 

2020

2019

 

 

 

£'000

£'000

Operating loss

 

 

(408)

(1,325)

Adjusting items:

 

 

 

 

Depreciation on owned assets

 

 

386

451

Depreciation on right-of-use assets

 

 

949

1,015

Amortisation of intangible assets

 

 

691

633

Amortisation of acquired intangible assets

 

 

290

242

Impairment of development costs following acquisition of Celtech

 

 -

2,751

EBITDA

 

 

1,908

3,767

Share-based payments

 

 

 -

(40)

Acquisition costs expensed

 

 

30

159

Adjusted EBITDA

 

 

1,938

3,886

 

 

4. Segment information

 

The Group has only one business segment, 'htec Solutions'. All material operations and assets are in the UK.

 

 

Solutions

Corporate

Total

2020

 

£'000

£'000

£'000

Revenue - all external

 

19,750

 -

19,750

Gross profit

 

8,594

 -

8,594

Segment expenses

 

(8,598)

(404)

(9,002)

Operating loss

 

(4)

(404)

(408)

Net finance expense

 

 

 

(292)

Taxation

 

 

 

85

Loss for the year

 

 

 

(615)

 

 

 

 

 

Adjusted EBITDA

 

 

 

1,938

 

 

 

 

 

 

 

Solutions

Corporate

Total

2019 Restated *

 

£'000

£'000

£'000

Revenue - all external

 

22,441

 -

22,441

Gross profit

 

11,617

 -

11,617

Segment expenses

 

(8,903)

(4,039)

(12,942)

Operating profit / (loss)

 

2,714

(4,039)

(1,325)

Net finance expense

 

 

 

(260)

Taxation

 

 

 

558

Loss for the year

 

 

 

(1,027)

 

 

 

 

 

Adjusted EBITDA

 

 

 

3,886

 

*Further details of the prior year restatement are provided in Note 6

 

5. Earnings per share

 

The calculation of the basic, diluted and operating earnings per share is based on the following data:

 

 

2020

2019

 

 

£'000

£'000

 

 

 

Restated *

Earnings

 

 

 

Loss after tax - used for basic and diluted earnings per share

 

(615)

(1,027)

 

 

 

2020

2019

 

 

No '000

No '000

Number of shares

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share

 

260,565

251,080

Dilutive effect of share options

 

542

2,656

Weighted average number of ordinary shares for the purposes of diluted earnings per share

 

261,107

253,736

 

The total number of share options granted at 31 December 2020 of 9,203,000 (2019: 10,203,000) would generate £444,290 (2019: 454,290) in cash if exercised.

 

At 31 December 2020, 9,203,000 share options (2019: 6,750,000) were priced above the mid-market closing price of 3.90 pence per share (2019: 5.25 pence per share) and Nil (2019: 3,453,000) were below. Of the share options outstanding at the end of the year, 9,203,000 (2019: 10,203,000) staff options were eligible for exercising at an average price of 4.83 pence (2019: 4.45 pence).

 

At the end of the year Nil (2019: nil) share options were in issue that could have potentially diluted earnings per share but were not included in the calculation of diluted earnings per share because they were dilutive in that period.

 

 

2020

2019

 

 

pence

pence

 

 

 

Restated *

Basic losses per share

 

(0.24)

(0.41)

Diluted losses per share

 

(0.24)

(0.40)

* Further details of the prior year restatement are provided in Note 6

 

 

6. Prior year adjustment

 

As a result of a charge for impairment against development costs incurred for the year ending 31 December 2019, adjustments with regards accelerated capital allowances totaling £439,000 were not reflected correctly as a reduction in the overall tax charge for the group. The financial impact of the restatement is to increase shareholders' equity by £439,000 from £23,714,000, as previously stated, to £24,153,000 and to decrease the loss after taxation by £439,000 from £1,466,000, as previously stated, to £1,027,000. The restatement has had no impact on cash or cash equivalents.

 

 

7. Report and Accounts and Annual General Meeting

 

Copies of the Annual Report and Accounts, together with a notice of the Company's forthcoming Annual General Meeting, will be posted to shareholders in early June 2021 and copies will also be available, free of charge, from the Company's registered office at George Curl Way, Southampton SO18 2RX and from the Company's website www.universeplc.com.  The Company's Annual General Meeting is scheduled to be held on 29 June 2021 and further details will be announced in due course.

 

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END
 
 
FR DKCBKBBKBBQB
Date   Source Headline
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