UNG.L Regulatory News (UNG)

9 Sep 2005 07:00

Universe Group PLC09 September 2005 FOR IMMEDIATE RELEASE9 September 2005 UNIVERSE GROUP PLC UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 Universe Group plc ("Universe" or the "Company"), the retail and informationsystems company, is pleased to announce its Interim Results for the six monthsended 30 June 2005. Highlights: • Continuing turnover of £14.7 million (2004: £11.0 million) • Operating profit on continuing business £1,229,000 (2004: £757,000) • Profit before tax £482,000 (2004: loss of £224,000) • Adjusted earnings per share 1.45p (2004: 0.84p) • Sale of First Remit completed on 12 August 2005 • Unchanged interim dividend of 0.25p • Appointment of Bishopsgate Communications Ltd as Financial and Corporate PR. Commenting, Ray Mackie, Executive Chairman of Universe said: "In the first half of 2005 we achieved an operating profit on our continuingbusiness and before exceptional items which was 62.3% higher than last year. Inthe main this was the result of an excellent performance at HTEC. Continuingoperating profits before exceptional items were £1,229,000 compared to £757,000for the first half of last year on a like for like basis. Our continuingbusiness is that of HTEC and the Paris shops of Master Change". "The medium term prospects for HTEC are excellent although the second half willbe quieter. With its shop closure programme completed there are signs that theParis shops will put in a strong performance for Master Change." Enquiries: Universe Group plcRay Mackie, Executive Chairman 02380 689510 Charles Stanley & Co LimitedRussell Cook 020 7739 8200 Bishopsgate Communications LtdDominic Barretto, Maxine Barnes 020 7430 1600 Chairman's Statement In the first half of 2005 we achieved an operating profit on our continuingbusiness and before exceptional items which was 62.3% higher than last year. Inthe main this was the result of an excellent performance at HTEC. Continuingoperating profits before exceptional items were £1,229,000 compared to £757,000for the first half of last year on a like for like basis. Our continuingbusiness is that of HTEC and the Paris shops of Master Change. Results and Dividend Our sales on continuing business were £14.7million against £11.0million for thecomparable period last year. On this figure we achieved a profit before tax of£175,000 after exceptional charges of £294,000 and discontinued business lossesof £453,000. Our earnings per share on continuing business are 1.45 pence pershare compared to 0.84 pence last year on a comparable basis. This is based onadjusted earnings of £887,000 (2004 - £496,000). Our accounts will be preparedunder IFRS from 1 January 2005. We will pay an interim dividend of 0.25 penceper share (2004 - 0.25 pence per share). Retail and Information Systems HTEC had a very busy first half. Sales showed a significant increase over theprevious year to ASDA, Morrisons and PayPoint. Taking each of our main HTEC product areas in turn we see excellent prospectsalthough development cycles mean that the second half will not see the stronggrowth seen in the first half. HydraPOS HydraPOS is now in operation throughout ASDA and Morrisons and to some degree inuse at Somerfield and Murco. Other operators, notably Spar in England andAnglia Co-op, are currently evaluating the system. The HydraPOS, with ToshibaTEC, is the platform for the successful Morrisons Miles on-line loyaltyprogramme. Hydra OPT The Hydra Outdoor Payment Terminal, the first fully approved OPT for use withChip & PIN for petrol pumps, is in use at ASDA. Important relationships havebeen established with pump providers and this will lead to further Hydra OPTinstallations. This is a very exciting extension to our business. Gemini Gemini has been developed to operate Chip & PIN with the Gemini IntelligentPINpad and this process has been difficult and drawn out. As with many PINpadproviders we are experiencing teething difficulties but I am certain our closeworking relationship with the main Gemini customers will assist us to overcomethese. On-Line Services HTEC has created a number of on-line products which will lead to profitablegrowth. I have already mentioned our on-line loyalty business with Morrisonsand others. Of equal importance is our Virtual Back Office which enablesmanagers to control their petrol forecourts (and the same applies in otherbusiness fields) from wherever they have an internet connection giving themaccess to real time data collection and the flexibility to generate reports inany format. Other Services Our engineering field service has been so busy we have needed to employ anadditional resource on a contract basis. This has constrained our margins buthas been a way of coping with our expansion without increasing our cost base forthe longer term. Currency Division There have been big changes in this Division. The most important one is thesale (on 12 August 2005) of the First Remit business to Travelex Money TransferLtd ("TMT"). It had become apparent that the business required furtherinvestment and TMT is able to integrate the business on to its own. At MasterChange we closed all our remaining bureaux outside of Paris. These were inLondon, Vienna and Strasbourg. We now trade, profitably, from our Paris shopsonly. Prospects The medium term prospects for HTEC are excellent although the second half willbe quieter. With its shop closure programme completed there are signs that theParis shops will put in a strong performance for Master Change. Ray MackieExecutive Chairman9 September 2005 Group Income Statement (unaudited)for the six months ended 30 June 2005 Six months Restated Restated to June Six months Year to 2005 to June December 2004 2004 £'000 £'000 £'000 TurnoverContinuing 14,662 10,970 25,801Discontinued 7,640 9,379 18,191 ------------- ------------- ------------- 22,302 20,349 43,992 ------------- ------------- ------------- Operating profitContinuing 1,229 757 2,391Discontinued (453) (454) (955)Operating exceptional items (294) (266) (905) ------------- ------------- ------------- Operating profit before interest and taxation 482 37 531 Net financial expense (307) (261) (605) ------------- ------------- -------------Profit/(loss) before taxation 175 (224) (74) Income tax expenses (35) 0 (13) ------------- ------------- -------------Profit/(loss) attributable to equity holders 140 (224) (87) ============= ============= ============= Earnings/(loss) per share (pence)Basic and diluted 0.23 (0.38) (0.10)Adjusted before exceptional items, and discontinuedoperations 1.45 0.84 2.96 Group Balance Sheet (unaudited)as at 30 June 2005 Restated Restated 30 June 30 June 31 December 2005 2004 2004 £000 £000 £000 Non-current assetsIntangible assets 22,198 22,386 22,599Property, planet and equipment 4,961 5,578 5,200 ---------------- ---------------- ---------------- 27,159 27,964 27,799 ---------------- ---------------- ----------------Current assetsInventories 2,613 3,013 3,012Receivables 2,853 2,247 3,005Cash and cash equivalents 261 265 250 ---------------- ---------------- ---------------- 5,727 5,525 6,267 Current liabilities (5,890) (6,249) (6,606) ---------------- ---------------- ---------------- Net current liabilities (163) (724) (339) ---------------- ---------------- ----------------Total assets less current liabilities 26,996 27,240 27,460 ---------------- ---------------- ----------------Non-current liabilities (1,964) (2,338) (2,349) ---------------- ---------------- ----------------Net assets 25,032 24,902 25,111 ---------------- ---------------- ----------------Capital and reservesCalled up share capital 3,063 3,053 3,053Share premium account 9,604 9,584 9,576Other reserves 8,980 8,955 8,942Retained earnings 3,385 3,308 3,540 ---------------- ---------------- ----------------Reconciliation of closing equity shareholders' funds 25,032 24,900 25,111 Equity minority interest - 2 - ================ =============== ================Total equity 25,032 24,902 25,111 ================ =============== ================ Reconciliation of closing equity shareholders' funds Share Capital Share Premium Other Reserves Retained Earnings Total £000 £000 £000 £000 £000 At 1 January 2005 3,053 9,576 8,942 3,540 25,111Shares issued 10 28 38 - 76Profit for period - - - 140 140Exchange differences - - - 10 10Dividends declared - - - (305) (305) ------------ ------------ ------------ ------------ ------------At 30 June 2005 3,063 9,604 8,980 3,385 25,032 ============ ============ ============ ============ ============ At 1 January 2004 2,931 9,155 9,035 4,349 25,470Shares issued 122 429 (80) - 471Profit for period - - - (224) (224)Exchange differences - - - (318) (318)Dividends declared - - - (499) (499) ------------ ------------ ------------ ------------ ------------At 30 June 2004 3,053 9,584 8,955 3,308 24,900 ============ ============ ============ ============ ============ Group Cash Flow Statement (unaudited)for the six months ended 30 June 2005 Six months Six months Year to 31 to 30 June to 30 June December 2004 2005 2004 £'000 £'000 £'000 Cash flows from operating activitiesOperating profit 482 37 531Depreciation and amortisation 906 372 1,444Loss on disposal of fixed assets 251 - 193Movement in working capital 539 (154) (64)Interest paid (266) (220) (524)Dividends paid (191) (228) (608)Tax paid - (27) (29) -------------- -------------- --------------Net cash inflow/(outflow) from operating activities 1,721 (220) 943 -------------- -------------- --------------Cash flows from investing activitiesPurchase of tangible fixed assets (68) (226) (449)Purchase of intangible fixed assets (202) - (1,252)Sale of tangible fixed assets - 171 269Acquisitions - - (2) -------------- -------------- --------------Net cash outflow from investing activities (270) (55) (1,434) -------------- -------------- --------------Cash flow from financing activitiesCapital elements of lease payments (328) (218) (372)Repayment of loans (786) (228) (311)Issue of shares net of expenses - 403 433Other new loans - 589 1,155 -------------- -------------- --------------Net cash (outflow)/inflow from financing (1,114) 546 905 -------------- -------------- --------------Increase in cash in period 337 271 414 -------------- -------------- -------------- Six months Six months Year to 31 to 30 June to 30 June December 2004 2005 2004 £'000 £'000 £'000Reconciliation of movement in net debt Increase in cash in period 337 271 414Cash inflow/(outflow) from movement in debtand lease financing 1,165 (96) (310) -------------- -------------- --------------Changes in net debt resulting from cash flows 1,502 175 104New finance leases (247) (115) (138)Exchange differences - - (13)Loan issue costs (41) (120) (162) -------------- -------------- --------------Movement in net debt 1,214 (60) (209)Net debt at 1 January (4,584) (4,375) (4,375) ============== ============== ==============Net debt at 30 June (3,370) (4,435) (4,584) ============== ============== ============== Notes to Interim financial statements for six months ended 30 June 2005 1. The annual financial statements of the company for the year ended 31December 2005 will be prepared in accordance with the International FinancialReporting Standards (IFRS). Accordingly, the interim financial report has beenprepared using accounting policies consistent with IFRS. 2. These interim financial statements are presented in accordance withIASI, Presentation of Financial Statements. Where no definitive guidance existsin respect of presentation, a UK GAAP approach has been followed to maintainconsistency with prior years. Further IFRS information is given overleaf. 3. The half year results were neither audited nor reviewed by theauditors. The full year figures for 2004 do not constitute statutory accountsfor the purposes of section 240 of the Companies Act 1985. A copy of thestatutory accounts for that year under UK Generally Accepted Accounting Practice(UK GAAP), and upon which the auditors issued a qualified opinion, have beendelivered to the Registrar of Companies. Those accounts did not contain astatement under section 237 (2) or (3). The comparatives as presented for 31December 2004 which were previously presented under UK GAAP are presented underIFRS within this interim report. 4. The interim report will be circulated to all shareholders and copieswill be available from the Company's head & registered office: SouthamptonInternational Park, Southampton, SO18 2RX. 5. The board has declared an interim dividend of 0.25 pence per 5 penceordinary share ( 2004 :0.25 pence per 5 pence share) payable on 16 January 2006to all shareholders on the register on 2 December 2005. 6. The earnings per share is calculated by reference to the results andthe weighted average of 61,143,057 shares in issue during the period. Thenumber of shares in issue at 30 June 2005 was 61,253,690. 7. The tax charge, after an adjustment for a prior period, is 20% ofprofits and is the estimated effective rate for the year. Comparative data restated in accordance with the transition to IFRS (unaudited) Introduction From 1 January 2005, the Group is reporting its results in accordance withInternational Financial Reporting Standards (IFRS). The transition date is 1January 2004. The comparative data in this report has been restatedaccordingly. To comply with the requirements of reporting the first set of interim resultsfollowing transition to IFRS, a reconciliation of profit under UK GAAP for the 6months to 30 June 2004 to the income under IFRS for the 6 months to 30 June 2004is set out below. A summary of the differences between UK GAAP and IFRS thatled to the adjustments are also set out below. IFRS also requires a reconciliation of equity under UK GAAP at 30 June 2004 toequity under IFRS at 30 June 2004. This is also set out below. Further reconciliations are included below. These are: • A reconciliation of retained loss under UK GAAP for the year to 31 December 2004 to the retained loss under IFRS for the year to 31 December 2004 • A reconciliation of equity at 1 January 2004 under UK GAAP to 1 January 2004 under IFRS • A reconciliation of equity at 31 December 2004 under UK GAAP to 31 December 2004 under IFRS IFRS Adjustments Under UK GAAP, the dividend charge was recognised in the profit and loss accountin the period to which it related. Under IFRS the dividend charge is notrecognised in the income statement but is recognised directly in equity in theperiod it is declared. The comparative data restated in accordance with the transition to IFRS is: 31 December 2004 1 30 June 2004 £000 January 2004 £000 £000Group income statementRetained loss for the financial period under UKGAAP (377) (545)Dividends payable 153 458 --------------- ---------------Loss attributable to equity holders (224) (87) --------------- --------------- Balance Sheet AdjustmentsCreditors: Amounts fully due within the year underUK GAAP (6,402) (6,911)Dividends payable 153 305 --------------- ---------------Revised figure under IFRS (6,249) (6,606) --------------- ---------------Profit and loss account under UK GAAP 3,155 3,295Dividends payable 153 305 --------------- ---------------Retained earnings under IFRS 3,308 3,540 --------------- --------------- Reconciliation of equity including retainedearningsTotal equity under UK GAAP 24,749 24,806 24,971Dividends payable 153 305 499 --------------- --------------- ---------------Total equity under IFRS 24,902 25,111 25,470 --------------- --------------- --------------- Exemptions In preparing this financial information the Group has taken permitted IFRSIfirst time adoption exemptions as follows: • Business combinations prior to the transition date have not been restated as no significant acquisitions have taken place in the past five years. • IFRS2 (share-based payments) has been applied only to awards made after 7 November 2002. Other permitted exemptions are not applicable to the company. This information is provided by RNS The company news service from the London Stock Exchange