UNG.L Regulatory News (UNG)

12 Feb 2008 07:00

Universe Group PLC12 February 2008 Immediate release: 12 February 2008 Universe Group PLC ("Universe" or "the Company") Pre close statement New Contract wins, Acquisitions and Expansion of car valeting division Universe, (AIM: UNG.L), the retail and loyalty systems company, announces thatits results for the year to 31 December 2007 will be announced on 15 April 2008.The board anticipates that the results will be in line with the latest marketestimates. The board is confident that the progress achieved by the newmanagement team through 2007 will lead to continued growth in 2008 and beyond. The board is pleased to report that HTEC, its principal trading subsidiary, haswon a new contract with Murco Petroleum ("Murco"). Also, Universe hasstrengthened its car valeting division with two acquisitions and a new contractwin with Co-Operative Group. Further details are given below. The contract wins and acquisitions referred to below are expected to make asignificant contribution to earnings in the current year. The addition ofin-house fabrication and service within the car valeting division adds to thereturn on the business and allows for better control of equipment roll-outrequirements. New Contract Win for HTEC The Murco contract is for the installation of HTEC's HydraPOS software intoMurco's "Costcutter" branded stores. The contract value is expected to be inexcess of £500,000 during 2008. Murco currently operates over 160 sites in theUK which will now be able to carry out on-line credit card transactions usingMurco's own linked network. Jeremy Clarke, Murco's Marketing Director said: "This new solution has givenMurco a very stable platform enabling us to take our business forward." Paul Cooper, CEO of Universe, commented: "This new contract, with a company ofMurco's stature, emphasises HTEC's position as a leading supplier of retail andloyalty systems to the petrol forecourt industry, where modern, robust andcommon platforms are required, supported by on-line managed service backup. Weare delighted with the progress HTEC is making in becoming the number oneprovider of a total managed service retail solution for these markets." Acquisitions and expansion of car valeting division Universe announces that it has formed a new subsidiary company to focus on theprovision of its car wash and valeting services. The new company is calledJet Set Wash Services Limited ("Jet Set"). Jet Set will comprise the Company'sexisting car wash and valeting services, details of which were announced inAugust 2007, together with two new acquisitions announced today. The first acquisition is of certain assets of AIB Services Limited ("AIB"),which trades as "Jet Set". AIB is a family owned business based in Bedford andhas manufactured and installed petrol forecourt carwash, vacuum and airequipment for over 30 years. AIB has a national service team, employing 19people. It produces and installs a range of car wash, jet wash vacuum andvaleting systems. Universe will acquire the stock and certain assets of AIB, for a maximum cashconsideration of £584,000 of which £434,000 will be paid on completion with afurther performance related payment of up to £150,000 over the following threeyear period. Additionally, Universe announces that it has signed heads of terms for theacquisition of Edinburgh based WSF Services Limited ("WSF"). WSF is anestablished vehicle cleaning equipment provider and will extend Universe's jetwash and valeting services into the Scottish market. The acquisition of WSF isexpected to complete before the end of February. These acquisitions have been complemented by the award of a new contract withthe Co-Operative Group to install air and vacuum dispensing equipment on all ofits 165 sites, with a total installation of over 330 units. The contract is on ashared revenue basis over the life of the equipment. Paul Cooper, CEO of Universe, commented: "The acquisition of AIB together withWSF will give us an excellent platform from which to build the new valetingbusiness line. Jet Set will operate from a modern 22,000 square foot factory inBedford formally occupied by AIB and will provide the manufacturing and servicecapability for the new business. WSF gives us immediate access to the valetingmarket in Scotland, and a strong northern service base. More than 20 staff willtransfer to Jet Set to create a significant operating subsidiary." "We are also delighted with the new agreement with the Co-Op, which representsfurther traction with our growing customer base. We look forward to working withthem as we continue to drive the business forward." - ends - For further information please contact: Universe Group plc Tel: 02380 689510John Scholes, ChairmanPaul Cooper, Chief Executive Charles Stanley SecuritiesNominated Adviser & Broker Tel: 020 7149 6000Russell CookCarl Holmes Tavistock Communications Tel: 020 7920 3150John WestAndrew Dunn This information is provided by RNS The company news service from the London Stock Exchange