Univision Regulatory News (UVEL)

19 Dec 2006 07:01

UniVision Engineering Ltd19 December 2006 UniVision Engineering Limited ("UniVision", "the Company" or "the Group) Interim Results For the Six Months Ended 30 September 2006 UniVision Engineering Limited, the Hong Kong based designer and installer ofdigital surveillance and integrated security systems, announces its Interimresults for the six months ended 30 September 2006. The principal activities of the Company are the supply, design, installation andmaintenance of closed circuit television and surveillance systems, and the saleof security related products. During the period the Group has made considerable progress and is now wellpositioned to sustain long term growth and is benefiting from the synergiesrelating to its acquisition of T-Com Tech Co. Ltd. This has allowed the Group toexpand its reach geographically and further develop the product range. TheGroup's business has been streamlined, benefiting from economies of scale and amore efficient allocation of its resources, with a greater level of research anddevelopment. Highlights Turnover up 133% to £3.5m (2005 : £1.5m)Operating profit up 39% to £0.75m (2005: £0.54m)Cash and cash equivalents £0.40m as at 30 September 2006 (2005 : £0.46 m) Commenting on the results, Stephen Koo, Chairman of UniVision said: "The currentfinancial year has begun well and the Company's performance is very encouraging.In view of the strong demand for our products from our existing customers,coupled with the positive sentiment towards digital surveillance products, themanagement is confident of making further significant progresses over the comingmonths." For further information visit www.uvel.com or contact: Peter WardDirector - Corporate FinanceInsinger de Beaufort131 Finsbury PavementLondon EC2A 1NTTel 020 7190 7017 Matt Ridsdale/Simon ComptonTavistock CommunicationsTel 020 7920 3150 Chairman's Statement I am pleased to report the results of UniVision Engineering Limited ("UniVision"or the "Company") and its subsidiary for the six months ended 30 September 2006. We have been providing our customers with digital surveillance and integratedsecurity systems - "total surveillance video solutions" - in the Pacific regionfor a number of years and, as our product range and skills base have grown, weare increasingly able to service clients on a global basis. The acquisition of amajority shareholding in T-Com Tech. Co. Ltd in May of this year has addedmomentum to our continued growth, and in particular with the launch of its newproduct range we have gained market share in Taiwan, faster than many of ourcompetitors. T-Com has won a number of mandates to provide its CCTV products inTaiwan as well as the PRC. To accelerate our plans in Greater China, in October we also acquired 100% ofthe issued share capital of Leader Smart Engineering Co. Ltd, and expanded ourpresence in the PRC. Our objectives are to further develop our expertise in producing high quality,reliable and innovative digital video solutions and to consolidate our salesnetwork throughout the Greater China region. This will enable us to respond togrowing demand in the surveillance industry, both domestically andinternationally. Financial Review During the period turnover increased by 133% to £3.5m (2005: £1.5m). This growthis attributable to increased sales to existing clients, an improvement in marketconditions and the acquisition of our interest in T-Com Tech. Co. Ltd. Profit from operations increased by 39% to £0.75m (2005: £0.54m), net profitincreased by 30% to £0.70m (2005: £0.54m) and in turn basic and fully dilutedprofit per share was 0.18p (2005 : 0.21p). The reduction in the profit per shareresults from the issue of new ordinary shares at the time of admission to AIM.The 0.21p profit per share reported for 2005 was prior to the Company'sadmission to AIM. Cash and cash equivalents at the period end were £0.40m (2005: £0.46m). Thereduced cash level was due mainly to an increase in the number of projectsundertaken by the Company and the level of funds committed to fulfilling thosecontracts. Business Review Markets, Solutions and Products Hybrid solutions, which connect IP and analogue cameras with CCTV MatrixControllers and DVRs, became mainstream in 2006 resulting in significantopportunities for our Company. The Directors believe that open platforms, integrating various systems such ascameras, Matrix, DVRs, Card Access Systems and Fire Alarm Systems will representthe next major development within the digital security market. UniVision isamong the pioneers of this movement, providing a total integrated securitysolution, and the Company is expanding its sphere of business accordingly. On the solutions side, an ongoing IT development programme is in place to caterfor the needs of UniVision's growing client base in the Asia Pacific region. The Company is currently developing a new digital server series with PC andembedded base solutions using our own designed integrated circuit microchips(with video control, video overlay and multiplexer functions). This, togetherwith an open platform central monitoring system, is capable of integratingvarious bands of DVRs, Access Control, Matrix and Fire Alarm Systems with highlevel integration. Besides, the company is currently working on H.264 CoDec(Digital Encoder and Decoder) with built-in video analysis algorithms in theHomeland Security field such as intruder detection, loitering detection, leftbehind objects and trip wire etc. Acquisitions and Investments The success of our investment in T-Com Tech. Co. Ltd in the first quarter of thecurrent financial year has reinforced the Company's strategy of acquiringinterests in companies with synergistic and/or strategic value. In October weacquired 100% of Leader Smart Engineering Limited, which is based in Shanghaiand has strong business contacts in the PRC, and which will provide us withpotential for future growth. For example, Leader Smart Engineering Limited has recently entered into acontract with a value of approximately £350,000.00 for the design, supply andcommissioning of electrical and mechanical systems for the Mercedes Benz 3SCentre at TianZho, Beijing City, PRC. Prospects The Company's performance domestically has been strong with new revenue streamsfrom both the public and private sector. The Company is committed tointernational expansion particularly into the UK and European markets via ourLondon office and into the USA with local partners, whilst continuing to enhanceand expand our product and application development programmes. The first half of the current financial year has been very encouraging. In viewof the strong demand for our products from our existing customers, coupled withthe positive sentiment towards digital surveillance products, the management areconfident of making further significant progress over the coming months. The Board The Directors are also pleased to announce the appointment, with effect fromtoday, of Richard Fernie as a UK based non-executive director. Mr. Fernie, aged60, was until 2005 the Managing Director of Geoquip Holdings Ltd., a leadingcompany in the provision of electronic perimeter detection systems. There is no other information relating to Mr. Fernie which would otherwise fallto be disclosed under the provisions of paragraph (g) of Schedule 2 to the AIMRules. Consolidated Income Statement (Unaudited)For the six months ended 30 September 2006 Six months Six months ended 30 ended 30 September 2006 September 2005 ---------------- ---------------- £'000 £'000 Turnover 3,520 1,460Cost of Sales (2,195) (816) ---------------- ----------------Gross Profit 1,325 644 Other Revenue 79 126DistributionCosts (29) (36)AdministrativeExpenses (630) (194) ---------------- ----------------Profit FromOperations 745 540 Finance Costs (41) (2) ---------------- ----------------Profit before taxation 704 538 Taxation - - ---------------- ----------------Profit for the period 704 538 ================ ================ Profit attributable to : Equity holders 580 538of the parent MinorityInterests 124 - ---------------- ---------------- 704 538 ================ ================ Earnings per Share pence pence Basic and Diluted 0.18 0.21 Consolidated Balance Sheet ( Unaudited)as at 30 September 2006 As at 30 As at 30 September 2006 September 2005 ------------ ------------ £'000 £'000 ASSETSNon-Current Assets Plant and equipment 154 12 Intangible assets 125 4 Goodwill 300 - ------------ ------------ 579 16 ------------ ------------ Current assets Inventories 813 427 Due from construction contractcustomers 966 395 Trade receivables 2,462 512 Deposit, prepayment and 2,100 1,258other receivables Cash and cash equivalents 406 455 ------------ ------------ 6,747 3,047 ------------ ------------Total assets 7,326 3,063 ============ ============ LIABILITIES Current liabilities Due to construction contractcustomers 281 386 Trade payables and accruals 2,827 590 ------------ ------------ 3,108 976 ------------ ------------ Total liabilities 3,108 976 ------------ ------------ Net assets 4,218 2,087 ============ ============EQUITY Capital and reserves Share Capital 1,451 1,168 Share Premium 1,279 - Special Capital Reserve 143 143 Retained Earnings 1,225 673 Exchange Differences (193) 103 ------------ ------------ 3,905 2,087 Minority Interests 313 - ------------ ------------Total equity 4,218 2,087 ============ ============ Consolidated Statement of Changes in Equity (Unaudited)For the six months ended 30 September 2006 Special Share Capital Share Premium Retained Earnings Capital Exchange Minority Total Reserve Differences Interests equity ------ ------- -------- ------- -------- ------ ------- £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at1 April 2005 1,168 - 135 143 (19) - 1,427 Net profitfor the period - - 538 - - - 538 Effect oftranslation - - - - 122 - 122 ------ ------- -------- ------- -------- ------ ------- Balance at30 September 2005 1,168 - 673 143 103 - 2087 Issue ofshares uponlisting 235 1,280 - - - - 1,515 Issue ofshares uponplacing 48 262 - - - - 310 Share issuecosts - (263) - - - - (263) Net lossfor the period - - (28) - - - (28) Effect oftranslation - - - - (8) - (8) ------ ------- -------- ------- -------- ------ -------Balance at31 March 2006 1,451 1,279 645 143 95 - 3,613 Acquisitionof a subsidiary - - - - - 189 189 Net profitfor the period - - 580 - - 124 704 Effect oftranslation - - - - (288) - (288) ------ ------- -------- ------- -------- ------ ------- Balance at30 September 1,451 1,279 1,225 143 (193) 313 4,2182006 ====== ======= ======== ======= ======== ====== ======= Consolidated Cash Flow Statement (Unaudited)For the six months ended 30 September 2006 Six months Six months ended 30 ended 30 September 2006 September 2005 ---------- ---------- £'000 £'000 CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 704 538Adjustments for:Depreciation 20 4Interest income - (6) ---------- ----------Operating profit before working capitalchanges 724 536 (Increase)/decrease in inventories (267) 190(Increase)/decrease in trade receivables (722) 305Decrease in amounts due from construction contract customers 966 24Increase in deposits, prepaymentsand other receivables (834) (929)(Decrease)/increase in amounts due toconstruction contract customers (308) 133Decrease in trade payables and accruals (188) (223) ---------- ----------Net cash (used in ) / from operations (629) 36 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIESPurchases of plant and equipment (30) (6)Acquisition of intangible assets - (4)Acquisition of a subsidiary, net of cashand cash equivalents acquired (408) -Interest received - 6Decrease in pledged deposits - 10 ---------- ----------Net cash (used in ) / from investingactivities (438) 6 ---------- ---------- NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (1,067) 42 EFFECT OF CHANGES IN FOREIGN EXCHANGE 59 31 CASH AND CASH EQUIVALENTS AT BEGINNING OFTHE PERIOD 1,414 382 ---------- ----------CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 406 455 ========== ========== Notes to the Interim financial statements for the six months ended 30 September2006 1. Basis of preparation The unaudited interim financial statements for the six months ended 30 September2006 have been prepared under International Financial Reporting Standards('IFRS') using the policies consistent with those applied to the annualfinancial statements for the year ended 31 March 2006. The interim financialstatements, together with the comparative information contained in this reportfor the six months ended 30 September 2006, does not constitute the statutoryaccounts of the Company. 2. Earnings per share The calculation of basic and diluted earnings per share is based on the netprofit attributable to equity holders of the parent for the period ended 30September 2006 of £579,302 ( 2005 : £538,298), and the weighted average of323,313,333 ( 2005 : 262,480,000 ) ordinary shares in issue during the period. There were no potential dilutive ordinary shares outstanding during the period (2005 : Nil ) This information is provided by RNS The company news service from the London Stock Exchange