Univision Regulatory News (UVEL)

29 Dec 2008 07:00



UniVision Engineering Limited

("UniVision" or "The Group")

Interim Results

For the Six Months Ended 30 September 2008

UniVision Engineering Limited, the Hong Kong based Group whose principal activities are the supply, design, installation and maintenance of closed circuit television and surveillance systems, and the sale of security related products, today announces its interim results for the six months ended 30 September 2008.

Highlights

Turnover decreased by 24% to HK$64m (H1 2007: HK$84m).

Operating profit remained level at HK$11.2m (H1 2007: HK$11.3m).

Net profit after tax at HK$3.8m (H1 2007: HK$9.8m)

Basic and fully diluted earnings per share of HK$0.010 (H1 2007: HK$0.026).

Satisfactory domestic performance in the Greater China Region

Mr. Stephen Koo, Chairman, added: 

"Trading in the first half of the year has been satisfactory given the current global economic climate, which has had an impact on turnover. The contribution from Leader Smart, our subsidiary in the People's Republic of China ("PRC") was highly encouraging..  "The Group is currently involved in a number of significant projects which we expect to come to fruition in the second half of the year, including the maintenance contract with the Hong Kong Mass Transit Railway Corporation ("MTRC"). With this in mind, we remain cautiously optimistic with regards to our trading performance for the year as a whole."

For further information visit www.uvel.com or contact:

UniVision Engineering Limited +852 2389 3256

Stephen Koo, Chairman

Chun Hung Wong, CEO

Danny Yip, Finance Director

HB Corporate  +44 (0) 207 510 8600

Imran Ahmad/Rory Creedon

Threadneedle Communications     +44 (0) 207 653 9850

Graham Herring/Josh Royston

  

Chairman's Statement

I am pleased to report on the results of UniVision Engineering Limited and its subsidiaries for the six months ended 30 September 2008.

Financial Review

During the period turnover decreased by 24% to HK$64m (H1 2007: HK$84m).

The business has been affected by the adverse condition of the global economy and from market fluctuations.

Operating profit remained level at HK$11.2m (H1 2006 : HK$11.3m), whilst net profit decreased by 62% to HK$3.8m ( H1 2007: HK$9.9m ) mainly due to a provision made for the repayment of a HK$5.2m loan interest 

Basic and fully diluted earnings per share decreased to HK$0.010 (H1 2007 : HK$0.026).

The Group is currently involved in a number of significant projects which require high levels of capital funding which led to the loan financing, which, in turn, reduced the Group's net profit. We expect these projects to come to fruition in the second half of this year and, with this in mind, remain cautiously optimistic of a good trading performance for the year as a whole. 

Business Review

Markets

The current financial turmoil affects our market just as it affects the overall investment environment as well as the growth of the economy. IP Video is still playing an important part in the transition from analogue to digital in the CCTV industry. However, the economic malaise means that investment in the technology and the transition itself may slow down.

Applying a Hybrid IP system will become a more cost effective solution. The Group's Hybrid IP offering is based on the existing analogue system with some digital elements, providing a readily available platform for the transition to a full digital system in the future and reducing short term investment costs in this difficult time.

Despite these difficult market conditions, the Board expects the network video market to show strong growth in the coming years and considers that the Company is well placed to reap the benefits of this growth, and we will expand our business accordingly.

The Electrical & Mechanical ("E&M") business in China has made a good start, where we have a successful shopping mall project in Zhongzhan, China. However, it will heavily depend on the economic environment. 

Technologies, Solutions and Products

Although growth will slow, we expect technological advancement in the future to continue to make more sophisticated, intelligent and integrated systems. The Board believes that UniVision will be among the pioneers in providing the most effective solutions for businesses involved in the airport, rail and traffic surveillance industries.

The embedded DVR, which is sold under the Univision brand, has been used in several projects in Hong Kong. The newly developed Video Amplifier, with an on-screen display function, has also been used in one of our projects. We have received several other enquiries and are excited by the potential that these products have to improve our offering. We are also working on video analysis algorithms as well as some applications which we expect to launch in the coming year.

Acquisitions and Investments

The Group is not currently anticipating any imminent new acquisitions or investments. However, we are always assessing possible opportunities with a view to making further strategic investments.

Prospects

The current financial situation will have an effect on our businesses.

Our Security and Surveillance business will decline in the coming year. We will focus on some maintenance activities and the market for Hybrid IP systems. We will also be accessing and developing new technologies and solutions to take advantage of any future opportunities. 

The E&M business in China is still one of our growth targets. We have a shopping mall project in Zhongshan, China which is now in the final stage. Also, another resort project in Huangshan, China has been started. 

Our strategy becomes conservative under the current financial situation. Our growth will depend on access to funds..

Finally, on behalf of the Board, I would like to thank our customers, suppliers and shareholders for their continued support of UniVision. I would also like to acknowledge the hard work of the management and all the staff for their contribution and dedication to the Group.

MR. STEPHEN KOO

EXECUTIVE CHAIRMAN

29 December 2008

  

Consolidated  Balance Sheet( Unaudited)
As at 30 September 2008
	As at 30 September
	2008	2007	2008	2007
	HK$000	HK$000	￡'000	￡'000
ASSETS
Non-Current Assets
Plant and equipment	5,167	5,253	369	333
Intangible assets	0	0	0	0
Goodwill	14,284	14,284	1,021	907
	19,451	19,537	1,390	1,240
Current assets
Inventories	17,620	17,962	1,259	1,139
Due from construction contract	143,106	17,713	10,224	1,123
customers
Trade receivables
	24,275	58,115	1,734	3,684
Deposit, prepayment and  other receivables	30,726	16,484	2,195	1,043
Cash and cash equivalents	6,274	(8,961)	448	(568)
	222,001	101,313	15,860	6,421
Total assets	241,452	120,850	17,250	7,661
LIABILITIES
Current liabilities
Due to construction contract customers	15,417	1,688	1,101	107
Bank loan	32,097	-	2,293	-
Other loan payable	39,000	-	2,786	-
Trade payables and accruals	38,304	18,682	2,737	1,184
	124,818	20,370	8,917	1,291
Total liabilities	124,818	20,370	8,917	1,291
Net Assets	116,634	100,480	8,333	6,370
EQUITY
Capital and reserves
Share Capital	23,980	23,980	1,698	1,698
Share Premium	31,054	31,054	2,193	2,193
Special Capital Reserve	4,188	4,188	299	299
Retained Earnings	52,013	36,147	3,422	2,401
Exchange Differences	3,062	771	554	(496)
	114,297	96,140	8,166	6,095
Minority Interests	2,337	4,340	167	275
Total equity	116,634	100,480	8,333	6,370

Consolidated Statement of Changes in Equity (Unaudited)
For the six months ended 30 September 2008
	Share Capital		Share Premium		Retained Earnings		Special  Capital Reserve		Exchange  Differences		Minority  Interests		Total equity
	￡'000		￡'000		￡'000		￡'000		￡'000		￡'000		￡'000
Balance at 1 April 2007	1,698		2,193		1,770		299		(370)		285		5,875
Net profit for the period	-		-		631		-		-		1		632
Effect of translation	-		-		-		-		(126)		(11)		(137)
Balance at 30 September 2007	1,698		2,193		2,401		299		(496)		275		6,370
Net profit for the period	-		-		769		-		-		(139)		630
Effect of translation	-		-		-		-		273		18		291
Balance at 31 March  2008	1,698		2,193		3,170		299		(223)		154		7,291
Net profit for the six month ended 30 Sep 08	-		-		252		-		-		5		257
Effect of translation	-		-		-		-		777		8		785
Balance at 30 September 2008	1,698		2,193		3,422		299		554		167		8,333

  

UniVision Engineering Limited
Consolidated Statement of Changes in Equity
For the six months ended 30 Sep, 2008
					Retained earning/	Special capital		Special capital		Exchange				Minority	Total
			Share Capital	Share premium	(accumulated)	Reserve "A"		Reserve "B"		Difference		Sub-total		Interest	equiv. (HKD)
			HK$'000	HK$'000	HK$'000	HK$'000		HK$'000		HK$'000		HK$'000		HK$'000	HK$'000
Balance at 1 Apr, 2007			23,980	31,054	26,273	2,117		2,071		21		85,516		4,328	89,844
Net profit for the year					9,874							9,874		12	9,886
Effect of translation										750		750			750
Balance at 30 Sept., 2007			23,980	31,054	36,147	2,117		2,071		771		96,140		4,340	100,480
Net profit for the year					12,064							12,064		(2,174)	9,890
Effect of translation										1,863		1,863		235	2,098
Balance at 31 Mar 2008			23,980	31,054	48,211	2,117		2,071		2,634		110,067		2,401	112,468
Net Profit for the six months Ended 30 Sep 2008					3,802							3,802		73	3,875
Effect of translation										428		428		(137)	291
Balance at 30 Sep 2008			23,980	31,054	52,013	2,117		2,071		3,062		114,297		2,337	116,634
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 September 2008 2008  2007 2008 2007 CASH FLOW FROM OPERATING ACTIVITIES HK$000 HK$000 £'000 £'000 Profit / (loss) before taxation 5,366  10,568  356  676  Adjustments for: Depreciation 644  577  43 37  Admission to AIM costs impairment of Goodwill Reversal of provision for bad debts Provision for obsolete inventories Written back on trade payables and accruals Loss/ (Gain) on disposals of plant and equipment 7 1 Interest income (61) (4) Interest expenses 5,808　 385 Operating profit/(loss) before working capital changes 11,764 11,145  781  713  Decrease/(increase) in inventories (2,520) (2,469) (180) (157) Decrease/(increase) in accounts receivable 2,453 (24,773)  175 (1.570)  Increase in amounts due from construction contract customers (13,827) 1,511 (988)  96 Decrease in retention receivables     Decrease/(increase) in deposits, prepayments and other receivables 3,352  320 239 20 Increase in amount due from a related company (22) (26) (2) (2) (Increase)/decrease in amount due from an associate (Decrease)/increase in amounts due to construction contract customers 2,550 182 (Decrease)/Increase in amounts invest to contract       (Decrease)/Increase in accounts payable and accruals (10,570)  289 (755) 19 Decrease/(Increase) in investment in Securities Decrease in amount due to a related company Effect of changes in foreign exchange     Net cash (used in)/from operations (6,820)  (14,003)  (548) (881)  Tax paid (10)　 (682)　 (1)　 (44)  Net cash inflow from operating activities (6,830) (14,685) (549) (925) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment (494) (593) (35) (38) Acquisition of intangible assets Acquisition of associates Investment in associates Proceeds from sales of plant and equipment Interest received 61 4 Receipts from disposal of a subsidiary (Increase)/decrease/ in pledged deposits (4.045)　 　 (289)   Net cash from/(used in) investing activities (4,478) (593) (320) (38) CASH FLOWS FROM FINANCING ACTIVITIES Interest paid (603) (40) Dividend paid Proceeds from issuance of share capital Proceeds from new interest-bearing borrowings 10,879 777 Capital element of finance lease rentals paid (24) (2) Interest element of finance lease rentals paid  (5) (1) Payment of bank loan Payment of other loan Payment for Legal fee- IPO & OTHER EXPENSE (302) (19) Minority Interest Repayment of amount due to immediate holding company Payment of amount due to ultimate holding company 　 　 Net cash generated from/(used in) financing activities 10,247 (302) 734 (19) NET INCREASE IN CASH AND CASH EQUIVALENTS (1,061) (15,580) (135) (982) EFFECT OF CHANGES IN FOREIGN EXCHANGE 533 1,052 145 52   CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6,802  5,567  438  362  CASH AND CASH EQUIVALENTS AT END OF PERIOD 6,274 (8,961)  448 (568)																						GBP Rate :14.51

Notes to the Interim financial statements for the six months ended 30 September 2008

1. Basis of preparation

The unaudited interim financial statements for the six months ended 30 September 2008 have been prepared under International Financial Reporting Standards ('IFRS') using the policies consistent with those applied to the annual financial statements for the year ended 31 March 2008. The interim financial statements, together with the comparative information contained in this report for the six months ended 30 September 2008, does not constitute the statutory accounts of the Company.

2. Earnings per share

The calculation of basic and diluted earnings per share is based on the net profit attributable to equity holders of the parent for the period ended 30 September 2008 of HK$3.8m (2007 : HK$9.8m), and the weighted average of 383,677,323 ( 2007 : 383,677,323) ordinary shares in issue during the period. 

There were no potential dilutive ordinary shares outstanding during the period ( 2007 : Nil )

ENDIR FKNKQDBDDCBB