UNG.L Regulatory News (UNG)

27 Nov 2007 12:28

Universe Group PLC27 November 2007 Immediate release: 27 November 2007 Universe Group PLC ("Universe" or "the Company") Trading Update Universe, the retail and loyalty systems company, (AIM: UNG.L), reported at thetime of its interim results on 15 August 2007 that the Company had experienced ageneral improvement in trading and a return to profitability during the firstsix months of 2007. This improvement has continued into the second half of theyear and the Board is confident that the out turn for the year will represent asignificant improvement over 2006. Although the Company continues to experience growing demand for its services,both in the UK and internationally, and the order pipeline is strong, thefulfilment of a number of significant orders won during the year has been slowerthan anticipated due to operational factors with the customers themselves. As aresult, more deliverables from these projects will be completed in 2008 ratherthan 2007. The results will also be affected by a refinement to the revenue-share modelthat we announced in August in connection with the Jet Wash, Air Tower andVacuum system ("JAV"). We have increased costs and deferred revenues in 2007ensuring a greater contribution from JAV during 2008 and beyond. We look forwardto updating shareholders in more detail about the JAV operations when the systemis publicly launched in the coming weeks. Accordingly revenues for the second half to 31 December 2007 will be onlyslightly higher than the £6.2m reported in the first half and pre tax profitsfor the second half are expected to be less than the £447,000 contributionachieved in the first six months. John Scholes, Chairman of Universe commented: "The underlying business continuesto be strong and the progress we have made, coupled with the strength of thepipeline of contracted revenues and prospective opportunities for 2008, givesthe Board confidence for the future." - 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