6 Oct 2009 07:00
For immediate release: 6 October 2009
Universe Group PLC
("Universe" or "the Company")
EXTENSION OF FINANCING FACILITIES AND JETSET CONTRACT WIN
UPDATE ON BRULINES APPROACH
Universe, the AIM (UNG.L) listed retail and loyalty systems group, announces that it has entered into an extension of its financing facilities with the Bank of Scotland plc ("BoS").
The extended facility comprises a £1 million term loan and is repayable over a seven year term. Repayment starts only after an initial two year period following drawdown.
The new facility will be used to enable the Group to accelerate the roll-out of its JetSet division, particularly to increase the installation of car valeting equipment.
Additionally, Universe announces that its JetSet division has begun the roll-out phase of a five year revenue share agreement with Anglia Regional Co-operative Society Limited to supply car valeting equipment to their petrol forecourt sites. This contract is expected to increase JetSet revenues by 8% on an annualised basis.
Paul Cooper, Group CEO of Universe Group plc commented:
"As previously reported continued difficulty in attracting asset-based finance has been the biggest obstacle to success for JetSet. I am confident that the new funding line will allow JetSet to accelerate its equipment roll-out plans and will benefit the division significantly."
Update on Brulines approach
Having received a number of enquiries from its own shareholders, Universe wishes to clarify that whilst it has received a preliminary approach from Brulines Group PLC ("Brulines") regarding a potential offer for the issued and to be issued share capital of the Company, there is no agreement for Brulines to undertake any due diligence on the Company.
The Directors reiterate that they remain committed to pursuing a strategy which enhances shareholder value and believe that the Company's current share price does not properly reflect its prospects. A further announcement will be made in due course.
Accordingly, the Board advises that shareholders should take no action.
-ends-
| Enquiries: | |
| Universe Group PLC John Scholes, Chairman Paul Cooper, Chief Executive Officer Bob Smeeton, Finance Director | Tel: 023 8068 9510 |
| Arbuthnot Securities Limited Tom Griffiths | Tel: 020 7012 2000 |
| Tavistock Communications Jeremy Carey/John West/Andrew Dunn | Tel: 020 7920 3150 |