UNG.L Regulatory News (UNG)

30 Mar 2006 07:01

Universe Group PLC30 March 2006 30 MARCH 2006 UNIVERSE GROUP PLC UNAUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 Universe Group plc, ("Universe" or the "Company"), the retail and informationsystems company, is pleased to announce its unaudited Preliminary Results forthe year ended 31 December 2005. Key Points: • Operating profit on continuing business £1,747,000 (2004: £1,356,000) • Earnings per share on continuing business of 1.8p (2004: 1.3p) • Profit before tax £1,201,000 (2004: £751,000 on continuing business) • International money transfer business sold. • Proposed final dividend of 0.25p making a total for the year of 0.5p Commenting, Ray Mackie, Chairman of Universe said: "In 2005 we achieved an operating profit on our continuing business of£1,747,000 compared to £1,356,000 last year. We have adopted IFRS and groupoperating profits on this basis are struck after what were formerly accountedfor as exceptional items but before the results of the International MoneyTransfer discontinued operations. "Our sales on continuing business were £17.6million against £16.6million for2004. On this figure we achieved a profit before tax of £1.2million (2004 -£751,000). Our earnings per share on continuing business are 1.8 pence pershare, against 1.3 pence last year on a comparable basis. "While trading at our Currency Division remains satisfactory the prospects forHTEC are excellent. The newer Chip & PIN enabled products and our on-lineservices are being established fast. These give us a growth platform in our maincustomer base of petrol retail and also other sectors." For Further Information: Universe Group plcRay Mackie, Chairman 023 8068 9510 Charles Stanley SecuritiesRussell Cook 020 7953 2000 Bishopsgate Communications LtdDominic Barretto 020 7430 1600Fran Read CHAIRMAN'S STATEMENT In 2005 we achieved an operating profit on our continuing business of £1,747,000compared to £1,356,000 last year. We have adopted IFRS and group operatingprofits on this basis are struck after what were formerly accounted for asexceptional items but before the results of the International Money Transferdiscontinued operations. RESULTS Our sales on continuing business were £17.6million against £16.6million for2004. On this figure we achieved a profit before tax of £1.2million (2004 -£751,000). Our earnings per share on continuing business are 1.8 pence pershare, against 1.3 pence on last year on a comparable basis. RETAIL AND INFORMATION SYSTEMS HTEC had a very busy first half but a quieter second half as I anticipated in myhalf year report in September 2005. Delivered sales showed a good increase inrevenue over the previous year particularly from sales to ASDA, Morrisons andPayPoint. Our new business wins in the past year include Pace Petroleum, AngliaCo-op and Clinton Cards. Taking each of our main HTEC product areas in turn we see excellent prospectsfollowing a period of investment in our Chip & PIN. Our products include: HydraPOS - a Point of Sale system for petrol retailers. HydraOPT - a Chip & PIN enabled unattended system. Gemini - an electronic funds transfer (EFT) terminal for use with the GeminiIntelligent PINpad. HTEC On-line - a suite of on-line services. All our products and services give us continuing revenue after installation. Ourrecurring service income is now in excess of 25% of HTEC sales. HydraPOS HydraPOS is now in operation in ASDA, Morrisons, Somerfield, Murco, Henderson inNorthern Ireland and Anglia Co-op. The HydraPOS, with Toshiba TEC, is theplatform for the successful Morrisons Miles on-line loyalty programme installedon the HydraPOS system. Hydra OPT The Hydra Outdoor Payment Terminal, the first fully approved OPT for use withChip & PIN, is in use at ASDA and, on a pilot basis, at Morrisons. Hydra OPT isbeing converted to Chip & PIN across the ASDA estate. Important relationshipshave been established with pump providers and anticipate that this will lead tofurther Hydra OPT installations. In this regard we are working with Gilbarco andWayne, the two leading petrol pump providers to integrate HydraOPT into theirpump heads. This is a very exciting extension to our business. Thus far we have an OPT fully integrated with Gilbarco's SK700 Euroline andearlier this month, at the International Forecourt and Fuel Equipment Show, weexhibited the solution for the Wayne 9000. An OPT integrated with the WayneGlobal Star will follow soon. Gemini Gemini has been developed to operate Chip & PIN with the Gemini IntelligentPINpad and this process was difficult and long drawn out. As with many PINpadproviders we experienced teething difficulties but our close workingrelationship with the main Gemini customers has assisted us in tackling thesedifficulties. On-Line Services HTEC has created a number of on-line products which we anticipate will lead toprofitable growth. I have already mentioned our on-line loyalty business withMorrisons and others. Of equal importance is our Virtual Back Office whichenables managers to control their petrol forecourts (and the same applies inother business fields) from wherever they have an internet connection. They haveaccess to real time data collection and the flexibility to generate reports invarious formats. We now have on-line services installed with customers in Holland and Portugal aswell as in the UK and we have a pilot development underway for a scheme which,on the basis the pilot is successful, will be installed in many countries inEurope and elsewhere. Other Services CEM has been an important part of our business through the years and we are nowservicing a new customer, Clinton Cards, in upgrading their EPoS systems. CURRENCY DIVISION There have been significant changes in this Division. The most important one isthe sale of the First Remit business to Travelex Money Transfer Ltd ("TMT"). Ithad become apparent that the business required further investment and TMT hasbolted the First Remit business on to its own business. At Master Change we closed all our remaining bureaux outside of Paris. Thesewere in London, Vienna and Strasbourg. We now trade, profitably, from our coreParis shops. The cost of this downsizing has been significant with large chargesborne in both 2004 and 2005, but we anticipate that there will be no furtherrestructuring costs and that the Currency Division will continue to tradeprofitably in 2006 and beyond. DIVIDEND We will propose a final dividend of 0.25 pence per share (2004 - 0.5 pence pershare) at the AGM on 12 May for payment in July 2006. This is a reduction on thelevel of dividend paid last year which will retain cash in the business to helpHTEC take advantage of the opportunities with unattended payment and on-lineloyalty products and services. With an interim of 0.25p already paid for 2005the total dividend for the year will be 0.5p per ordinary share. MARKETING INITIATIVES The Board is also pleased to announce its commitment to an extensive marketingprogramme for 2006 as a part of its strategy to expand its customer base for itsmain operating company HTEC, both here and elsewhere in Europe. The programmeincludes a range of exhibitions one of which the International Forecourt andFuel Equipment Show has recently taken place. Visitors to these exhibitions arewholly pertinent to the group's target audiences each event sees the groupprovide visitors with an overview of the range and breadth of its innovativepetrol retail applications. PROSPECTS While trading at our Currency Division remains satisfactory, the prospects forHTEC are excellent. The newer Chip & PIN enabled products and our on-lineservices are being established fast. These give us a growth platform in our maincustomer base of petrol retail and also other sectors. R J Mackie Chairman 30 March 2006 Consolidated Income Statement - Unaudited for the year ended 31 December 2005 2005 2004 £000 £000Continuing Operations: Revenue 17,557 16,585 Net operating costs 15,810 15,229 Operating profit on continuing operations 1,747 1,356 Finance costs (546) (605) Profit before taxation 1,201 751 Taxation (119) (13) Profit for the year from continuing operations 1,082 738 Discontinued operations: Loss for the year from discontinued operations (844) (825) Profit/(loss) for the year attributable to equity 238 (87)shareholders Earnings/(loss) per share Pence Pence - Basic and diluted - Continuing 1.8 1.3 - Discontinued (1.4) (1.4) Consolidated statement of changes in equity for the year ended 31 December 2005 At 1 January 24,724 25,083Revaluation changes (110) (51) Shares issued 342 501 Profit/(loss) for the year attributable to equity 238 (87) shareholders Exchange differences (99) (70)Dividends declared (457) (652)At 31 December 24,638 24,724 Balance Sheet - Unaudited 31 December 2005 Group Group Restated 2005 2004 £000 £000 Non-current assets Goodwill 20,983 20,983 Intangible assets 2,533 2,192 Property, plant and equipment 4,501 5,200 Investments - - 28,017 28,375 Current assets Inventories 1,795 2,436 Trade and other receivables 2,744 3,005 Cash and cash equivalents 146 250 4,685 5,691 Total assets 32,702 34,066 Current liabilities Trade and other payables (2,696) (3,153) Tax liabilities (966) (968) Short term borrowings (2,621) (2,485) (6,283) (6,606) Non-current liabilities Medium term borrowings (1,454) (2,349) Deferred tax (327) (387) Total liabilities (8,064) (9,382) Net assets 24,638 24,724 Equity Share capital 3,147 3,053 Retained earnings and other reserves 21,491 21,671 Total equity 24,638 24,724 Consolidated Cash Flow Statement - Unaudited for the year ended 31 December 2005 2005 2004 £000 £000 Cash flows from operating activities Operating profit 903 531 Depreciation and amortisation 933 1,444 Loss on disposal of fixed assets - 193 Movement in working capital (17) 512 Interest paid (465) (524) Dividends paid (305) (608) Tax paid - (29) Net cash inflow from operating activities 1,049 1,519 Cash flows from investing activities Purchase of tangible fixed assets (294) (449) Purchase of intangible fixed assets (856) (1,828) Sale of fixed assets 570 269 Acquisitions and disposals 191 (2) Net cash outflow from investing activities (389) (2,010) Cash flow from financing activities Capital elements of lease payments (432) (372) Repayment of loans (945) (311) Issue of shares net of expenses 342 433 Other new loans 218 1,155 Net cash (outflow)/inflow from financing (817) 905 (Decrease)/increase in cash in period (157) 414 Reconciliation of movement in net debt (Decrease)/increase in cash in period (157) 414 Cash inflow/(outflow) from movement in debt and lease financing 1,159 (310) Changes in net debt resulting from cash flows 1,002 104 New finance leases (247) (138) Exchange differences (19) (13)Loan issue costs (81) (162) Movement in net debt 655 (209)Net debt at 1 January (4,584) (4,375) Net debt at 31 December (3,929) (4,584) Notes: 1. Financial Information These statements do not constitute accounts as defined by section 240 of theCompanies Act 1985. The financial information for the full preceding year is based on the statutoryaccounts for the financial year ended 31 December 2004 as adjusted toInternational Financial Reporting Standards. The accounts, on which the auditorsissued a qualified opinion with regard to the treatment of goodwill under UKGAAP, have been delivered to the Registrar of Companies. 2. Analysis of Operating Profit on Continuing Business The operating profit by division is: 2005 2004 £000 £000 Retail and Information Systems 1,826 2,272Currency Division 221 ( 436)Central Costs ( 300) ( 480) 1,747 1,356 3. Discontinued Operations This is the result of the International Money Transfer activity up to the dateof disposal. 4. Earnings Per Share The earnings per share is calculated by reference to the weighted average of61,506,000 (2004: 59,866,000) ordinary shares in issue during the year. Thenumber of shares in issue at 31 December 2005 was 62,927,000 (2004: 61,055,000). 5. Dividend The Board is recommending a final dividend of 0.25p per ordinary share payableon 7 July 2006, to shareholders on the register on 19 May 2006 subject toapproval at the AGM to be held on 12 May 2006. 6. Report and Accounts Copies of the Annual Report and Accounts will be sent to shareholders in andcopies will also be available, free of charge, from the Company's registeredoffice at George Curl Way, Southampton International Park, Southampton, SO182RX. This information is provided by RNS The company news service from the London Stock Exchange