Univision Regulatory News (UVEL)

14 Dec 2007 07:00

UniVision Engineering Ltd14 December 2007 UniVision Engineering Limited ("UniVision" or "The Group") Interim Results For the Six Months Ended 30 September 2007 UniVision Engineering Limited, the Hong Kong based Group whose principalactivities are the supply, design, installation and maintenance of closedcircuit television and surveillance systems, and the sale of security relatedproducts, today announces its interim results for the six months ended 30September 2007 Highlights * Turnover increased by 64% to HK$84m (H1 2006 : HK$51m ). * Operating profit up 4.6% to HK$11.3m (H1 2006 : HK$10.8m ). * Basic and fully diluted earnings per share of HK$0.026 (H1 2006 : HK$0.026). * Strong domestic performance in Greater China Region * Chun Hung Wong to take over as Group CEO from 1 Jan 2008 following retirement of Stephen Chan Mr. Stephen Koo, Chairman, added: "Trading in the first half of the year has been satisfactory. Turnover hasimproved considerably with a strong contribution from T.Com Tech and LeaderSmart, acquired in October 2006. "The Group is currently involved in a number of significant projects which weexpect to come to fruition in the second half of the year and therefore remainoptimistic of a strong trading performance for the year as a whole." For further information visit www.uvel.com or contact:UniVision Engineering Limited +852 2389 3256Stephen Koo, ChairmanDanny Yip, Finance Director HB Corporate +44 (0) 207 510 8600 Jim McGeever/Rory Creedon Threadneedle Communications +44 (0) 207 936 9605Graham Herring/Josh Royston Chairman's Statement I am pleased to report on the results of UniVision Engineering Limited and itssubsidiary for the six months ended 30 September 2007. 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 deliver to clients on a global basis. The acquisitionof a majority shareholding in T-Com Tech. Co. Ltd and the 100% shareholding ofLeader Smart Engineering Co., Ltd to expand our market in PRC has added momentumto our continued growth. 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 and Asia in order to respond togrowing demand in the surveillance industry. Financial Review During the period turnover increased by 64% to HK$84m (H1 2006 : HK$51m). This growth is attributable to additional sales to existing clients, theimprovement in market conditions and also the contribution of our subsidiary,T-Com Tech. Co. Ltd and Leader Smart Engineering Co., Ltd. which was acquired inOctober 2006. Operating profit increased by 4.6% to HK$11.3m ( H1 2006 : HK$10.8m), whilst netprofit decreased by 3% to HK$9.9m ( H1 2006 : HK$10.2m ) mainly due to theprovision of taxation in the subsidiaries. Operating profit when reported in Pounds Sterling shows a reduction from £745kin the first half of 2006 to £722k. This is due to the appreciation of the PoundSterling versus the Hong Kong Dollar for the two comparable periods. Basic and fully diluted earnings per share remained level at HK$0.026 ( H1 2006: HK$0.026). This is due to the issue of new ordinary shares as part of theconsideration for Leader Smart in October 2006 and the placing in March 2007. Cash and cash equivalents at 30 September 2007 showed a deficit of HK8.9m. TheGroup is currently involved in a large number of significant projects whichrequire high levels of capex, which is the main reason for the reduction in theGroup's cash balance. We expect these projects to come to fruition in the secondhalf of this year and therefore remain optimistic of a strong tradingperformance for the year as a whole. Business Review Markets IP Video provides the CCTV industry with a unique set of tools to improve thequality of CCTV coverage, which has proved particularly useful for the demandsof the transportation industry, which has used the analogue system for a decade. Using a Hybrid IP analogue system is the most cost effective way to connect IPand analogue cameras with CCTV Matrix Controllers and DVS. Hybrid solutionsprovide large installed base analogue cameras with a gateway to transmit videostreams from networks and the Internet. There are considerable opportunities in Greater China which is providing avenuesfor the Hybrid solutions. The Group is looking into many different solutions,including Video compression technology MPEG-4 and H.264, Digital Encoder andDecoder (CoDec) with built-in video analysis algorithms in the Homeland Securityfield such as intruder detection, loitering detection, left behind objects andtrip wire will be the new area of interest. The Board believes that UniVision will be among the pioneers in providing themost effective solutions for businesses in the airport, rail and trafficsurveillance industries and we hope to expand our sphere of businessaccordingly. Technologies, Solutions and Products On the solutions side, an ongoing product development programme is in place tocater for the needs of the Group's growing client base in the Asia Pacificregion. The Group's newly developed Digital Video Server with PC and embedded basesolutions came to market in July 2007 and have been used in several projects inHong Kong. A new brand name for these products is expected to be announced inearly 2008. A newly developed Video Amplifier with an on-screen display functionwas launched at the same time and the first order is due to be implemented intothe CCTV System for the Hong Kong Island Area Traffic Control. We are currentlyworking on H.264 CoDec with built in video analysis algorithms which we expectto launch early in the next financial year. Acquisitions and Investments The success of our investment in T-Com Tech. Co. Ltd and Leader Smart (Shanghai)Ltd has reinforced the Group's strategy of acquiring interests in companies withstrategic value. To this end, the Group is currently assessing a number ofcompanies in related fields with a view to making further strategic investments. The Board The Directors are also pleased to announce the appointment and promotion to theBoard, with effect from 1 Jan, 2008, of Mr. Chun Hung Wong to the position ofChief Executive. Mr Wong, aged 48, is currently the Group's OperationsDirector.. Our outgoing CEO, Mr. Stephen Chan, has announced his intention toretire from 1 Jan 2008. There is no other information relating to Mr. Chun Hung Wong which wouldotherwise fall to be disclosed under the provisions of paragraph (g) of Schedule2 to the AIM Rules. Prospects The Group's performance domestically has been strong with new revenue streamsfrom both the public and private sector in the Greater China Region. We areworking with partners in Australia, Thailand, and Dubai in securing productdistribution channels. We continue to enhance our product and applicationdevelopment programmes. The first few months of the current financial year have been very encouraging.In view of the strong demand for products from our existing customers, and thepositive sentiment and exposure towards the digital surveillance products ingeneral, the Board is confident of making further significant progress in thecurrent year. Finally, on behalf of the Board, I would like to thank our customers, suppliersand shareholders for their continued support of UniVision. I would also like toacknowledge the hard work of the management and all the staff for theircontribution and dedication to the Group. MR. STEPHEN KOOEXECUTIVE CHAIRMAN 14 December 2007 Consolidated Income Statement (Unaudited)For the six months ended 30 September 2007 For the six month ended 30 Sep. 2007 2006 2007 2006 HK$000 HK$000 £'000 £'000 Turnover 84,095 51,072 5,377 3,520 Cost of Sales (63,596) (31,853) (4,066) (2,195) Gross Profit 20,499 19,219 1,311 1,325 Other Revenue 1,203 1,152 77 79 Distribution Costs (547) (418) (35) (29) Administrative Expenses (9,868) (9,146) (631) (630) Profit From Operations 11,287 10,807 722 745 Finance Costs (719) (600) (46) (41) Profit before taxation 10,568 10,208 676 704 Taxation 682 (44) - Profit for the period 9,886 10,208 632 704 Profit attributable to: Equity holders of theparent 9,874 8,406 631 580 Minority Interests 12 1,802 1 124 9,886 10,208 632 704 Earnings per Share HK$ HK$ Pence pence Basic and Diluted 0.026 0.026 0.16 0.18 Consolidated BalanceSheet (Unaudited) as at 30 September 2007 As at 30 September 2007 2006 2007 2006 HK$000 HK$000 £'000 £'000 ASSETS Non-Current Assets Plant and equipment 5,253 2,229 333 154 Intangible assets 0 1,821 0 125 Goodwill 14,310 4,354 907 300 19,563 8,404 1,240 579 Current assets Inventories 17,962 11,795 1,139 813 Due from construction contract customers 17,713 14,017 1,123 966 Trade receivables 58,115 35,201 3,684 2,426 Deposit, prepayment and other receivables 16,458 30,471 1,043 2100 Cash and cash equivalents (8,961) 5,885 (568) 406 101,287 97,369 6,421 6,747 Total assets 120,850 105,773 7,661 7,326 LIABILITIES Current liabilities Due to construction contract customers 1,688 4,077 107 281 Trade payables and accruals 18,682 40,490 1,184 2,827 20,370 44,567 1,291 3,108 Total liabilities 20,370 44,567 1,291 3,108 Net Assets 100,480 61,206 6,370 4,218 EQUITY Capital and reserves Share Capital 23,980 20,207 1,698 1,451 Share Premium 31,054 17,177 2,193 1,729 Special Capital Reserve 4,188 2,071 299 143 Retained Earnings 36,147 17,925 2,401 1,225 Exchange Differences 771 (714) (496) (193) 96,140 56,666 6,095 3,905 Minority Interests 4,340 4,540 275 313 Total equity 100,480 61,206 6,370 4,218 Consolidated Statement of Changes in Equity (Unaudited) For the six months ended 30 September 2007 Share Share Retained Special Exchange Minority Total Capital Premium Earnings Capital Differences Interests equity Reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 April 2006 1,451 1,279 489 299 95 - 3,613 Net profit for the period - - 579 - - - 579Minority Interest 313 313Effect of translation - - - - (287) - (287) Balance at 30 September 2006 1,451 1,279 1,068 299 (192) 313 4,218 Issue of shares for acquisition of a subsidiary 23 217 - - - 165 405 Issue of shares upon placing 224 811 - - - - 1,035 Share issue costs - (114) - - - - (114) Net Profit for the period - - 702 - - (193) 509 Effect of translation - - - - (178) - (178) Balance at 31 March 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 UniVision Engineering Limited Consolidated Statement of Changes in Equity For the six months ended 30 September, 2007 Retained Special Special Exchange Minority Total earning/ capital capital Share Share (accumulated) reserve reserve different sub-total Interest equiv. Capital premium "A" "B" (HKD) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Balance at 31 March 2006 - previously reported 20,207 17,177 9,521 - 2,071 48,976 48,976 Recovery of provision for bad debts (182) 182 - - Recovery of provision for obsolete inventories 1,935 1,935 1,935 Provision for obsolete inventories (1,935) (1,935) (1,935) Balance at 31March 2006 -restated 20,207 17,177 7,404 2,117 2,071 - 48,976 - 48,976 Net profit for the period 10,207 10,208 10,208 Effect of translation (530) (530) (530) Minority Interest - 2,552 2,552 Balance at 30 September 2006 20,207 17,177 17,612 2,117 2,071 (530) 58,654 2,552 61,206 Issue of shares for acquisition of a subsidiary undertaking 335 3,165 530 4,030 4,030 Issue of shares upon placing 3,438 12,475 15,913 15,913 Share issue cost (1,763) (1,763) (1,763) Net profit for the year 8,661 8,661 1,776 10,437 Effect of translation 21 21 21 Balance at 31 March 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 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30 September 2007 GBP Rate: GBP Rate: GBP 15.773 14.51 14.51 2007 2006 2007 2006CASH FLOW FROM OPERATING ACTIVITIES HK$000 HK$000 £'000 £'000 Profit / (loss) before taxation 10,568 10,208 676 704 Adjustments for: Depreciation 577 291 37 20 Admission to AIM costs impairment of Goodwill Reversal of provision for bad debts Provision for obsolete inventories Written back on trade payables and accruals Gain on disposals of plant and equipment Interest income Interest expenses Operating profit / (loss) before working capital changes 11,145 10,499 713 724 Decrease/(increase) in inventories (2,469) (3,796) (157) (262) Decrease/(increase) in accounts receivable (24,773) 119 (1,570) 8Increase in amounts due from construction contract customers 1,511 96Decrease in retention receivables Decrease/(increase) in deposits, prepayments and other receivables 320 (12,201) 20 (841)Increase in amount due from a related company (26) (1) (2)(Increase)/decrease in amount due from an associate (Decrease)/increase in amounts due to construction contract customers (Decrease)/Increase in amounts invest to contract 5,829 402(Decrease)/Increase in accounts payable and accruals 289 (1,052) 19 (73)Decrease/(Increase) in investment in Securities (17) (1)Decrease in amount due to a related company Effect of changes in foreign exchange 1,052 764 61 53 Net cash (used in)/from operations (12,951) 144 (820) 10 Tax paid (682) (44) Net cash inflow from operating activities (13,633) 144 (864) 10 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of plant and equipment (593) (326) (38) (22) Acquisition of intangible assets Acquisition of an associate Investment in associate (NOTE 1) (5,912) (407) Proceeds from sales of plant and equipment Interest received Receipts from disposal of a subsidiary (Increase)/decrease/ in pledged deposits (4,306) (297) Net cash from/(used in) investing activities (593) (10,544) (38) (726) CASH FLOWS FROM FINANCING ACTIVITIES Interest paid Dividend paid Proceeds from issuance of share capital Proceeds from bank loan Proceeds from finance leases Payment of finance lease liabilities Payment of bank loan Payment of other loan Payment for Legal fee- IPO & OTHER EXPENSE (302) (536) (19) (37)Minority Interest (4,540) (313) Repayment of amount due to immediate holding company Payment of amount due to ultimate holding company Net cash generated from/(used in) financing activities (302) (5,076) (19) (350) NET INCREASE IN CASH AND CASH EQUIVALENTS (14,528) (15,476) (921) (1,066) EFFECT OF CHANGES IN FOREIGN EXCHANGE (9) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,567 21,361 362 1,472 CASH AND CASH EQUIVALENTS AT END OF PERIOD (8,961) 5,885 (568) 406 NOTE (1) Cash consolidation 7,350 507 balance and cash acquired (1,438) (99) cash flow on business combination , net of cash acquired 0 5,912 0 407 Notes to the Interim financial statements for the six months ended 30 September2007 1. Basis of preparation The unaudited interim financial statements for the six months ended 30 September2007 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 2007 The interim financialstatements, together with the comparative information contained in this reportfor the six months ended 30 September 2007, 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 2007 of HK$8.4m (2006 : HK$9.8m), and the weighted average of383,677,323 ( 2006 : 323,313,333) ordinary shares in issue during the period. There were no potential dilutive ordinary shares outstanding during the period (2006 : Nil ) This information is provided by RNS The company news service from the London Stock Exchange