REG - UniVision Eng Ltd - Notice of Contract Termination

UniVision EngineeringAnnouncement

17/06/2022 11:45

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RNS Number : 3105P  UniVision Engineering Ltd  17 June 2022

17 June 2022

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended.  On
publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.

 

 

UniVision Engineering Limited

("UniVision", the "Company" or the "Group")

Notice of Contract Termination

UniVision (AIM: UVEL), the Hong Kong based group whose principal activities
are the supply, design, installation and maintenance of closed-circuit
television (CCTV) and surveillance systems, and the sale of security related
products, announces that it has received formal notice this week of
termination of its contract with MTR Corporation Ltd ("MTRC"), for the
replacement works of the CCTV systems for MTRC's railway lines in Hong Kong,
for alleged breach of contract; the Company contests this and continues to try
and negotiate with MTRC to resolve the matter.

This original MTRC contract was awarded to the Company five years ago, in May
2017, with an expected completion date of November 2023, but with subsequent
contract add-ons this had been expected run until July 2024. Over the period
to date it has represented a step-change to the Group's long-established
business and termination of the contract would represent a significant loss of
future revenue and profitability for the Group.  However, the Group would be
able to re-deploy resources from this contract to other projects to mitigate
this reduction.  The termination of the MTRC contract is effective from 20
June 2022, but the effect of this will not be immediately apparent as there is
a time lag between works being completed and being certified and ultimately
paid.

Further updates will be made in due course.

 

For further information visit www.uvel.com (http://www.uvel.com) or contact:

 

 UniVision Engineering Limited                                                                                            Tel: +852 2389 3256
 Stephen Koo,                                                                                                             www.uvel.com (http://www.uvel.com)
 Chairman
 Danny Kwok Fai Yip, Finance Director

 SPARK Advisory Partners                                                                                                  Tel: +44 (0)20 3368 3551
 Limited

 (Nominated
 Adviser)
 Mark Brady / Neil Baldwin                                                                                                www. (http://www.sparkadvisorypartners.com) sparkadvisorypartners.com
                                                                                                                          (http://www.sparkadvisorypartners.com)

 SI Capital Limited (Broker)

                                                                                                                          Tel:  +44 (0)1483 413500

                                                                                                                          www.sicapital.co.uk (http://www.sicapital.co.uk)

Nick Emerson

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