Good morning!

Very quiet for results and trading updates again today, so another short report.

Universe (LON:UNG)

Share price: 9.5p (up 1.3% today)
No. shares: 220.3m
Market cap: £20.9m

Major contract win - I don't normally comment on contract win announcements, unless they look material to the business. Universe has won a contract to supply an EPoS system to the entire estate of 650 off-licence and convenience stores run (or franchised) by Conviviality Retail (LON:CVR) .

Revenue is expected to be £4.3m spread over 3 years, which isn't huge in the context of Universe already having forecast turnover of about £21.6m this year. However, I'm impressed that Universe has managed to win such a fairly big client, in a competitive tender, suggesting that its software is good. This deal should also act as a reference for further sales to other new customers.

The StockRank here is very good, at 96, also the trend of performance over the last few years seems to be encouraging, so Universe might be worth a fresh look. The shares look priced about right for now (forecast PER of 12.1), but if there's good growth in the pipeline then perhaps earnings forecasts might rise in future?

The only caveat is that these shares have always historically been very cheap, so could easily revert to being on a PER of 6-8 again, if the future numbers disappoint. Also there are no divis, and the spread can be wide. So it's probably not for me.


Treatt (LON:TET)

Share price: 165p (up 2% today)
No. shares: 51.7m
Market cap: £85.3m

Trading update - a reassuring update, with the key bit saying;

The Board is pleased to confirm that the Group has performed well in the second half of the financial year and expects to report revenue and profit before tax for the year ended 30 September 2015 in line with its expectations.  

Debt and forex are mentioned positively;

The cash performance of the Group has been encouraging, with net debt ending the year at its lowest level since 2006.  The Board is also pleased to report that the FX strategy in place has prevented movements in FX rates during the year having a material impact on results for the year.

Valuation - Stockopedia shows broker consensus…

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