REG - UniVision Eng Ltd - Loan Agreement

UniVision EngineeringAnnouncement

12/03/2019 11:35

RNS Number : 6180S
UniVision Engineering Ltd
12 March 2019
 


RNS ANNOUNCEMENT: The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
 
For immediate release: 12 March 2019
 
UniVision Engineering Limited
("UniVision", the "Company" or the "Group")
 Loan Agreement  
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 entered into a loan agreement with UniVision Holdings Limited to borrow HKD 3 million ("Loan Agreement").
Background
In the Chairman's Statement contained within the 2018 Annual Report (and in the last Interim Results, released on 7 December 2018), the Company commented that, as a result of the significant increase in work from the MTRC contract, the Group had been temporarily suspended from tendering for additional new government contracts by the Hong Kong Government Works Branch under the management of Electrical and Mechanical Services Department ("EMSD").  As we have announced previously, the effect of this temporary suspension has been insignificant, given the Group's current workload, with MTRC in particular.
However, the effect of entering into this Loan Agreement is to provide sufficient asset backing for the Group, to allow EMSD to lift this temporary suspension and allow the Group, once again, to be able to tender for new government contracts offered by the Hong Kong Government Works Branch.
For the avoidance of doubt, this temporary suspension did not relate to any work that the Group continues to undertake on the replacement works of the Closed-Circuit Television (CCTV) systems for numerous railway lines of MTRC in Hong Kong. 
Terms of the Loan Agreement
The Company has entered into an HKD 3 million, interest free, loan with UniVision Holdings Limited.  UniVision Holdings Limited owns 47.9% of the issued share capital of the Company and is wholly owned by Stephen Koo.  Including a previous loan of HKD1.2 million, made in year 2017, the total amount owed to UniVision Holding Limited is now HKD 4.2 million. It is a condition of EMSD that the HKD 3 million loan announced today may not be reduced or repaid to the lender without EMSD's prior permission.
 
Stephen Koo, Executive Chairman, commented:
 
"I am delighted that this loan to the Company has enabled it to resume tendering for new work from the Hong Kong Government Works Branch as it has been able to do in the past."
 
 
 
For further information visit www.uvel.com or contact:
 
 



UniVision Engineering Limited


Tel: +852 2389 3256




Stephen Koo, Chairman                                                       


www.uvel.com




Chun Pan Wong, Chief Executive Officer 








Danny Kwok Fai Yip, Finance Director








Nicholas Lyth, Non-Executive Director


Tel: +44 (0)7769 906686














SPARK Advisory Partners Limited                                       
(Nominated Adviser)                              


Tel: +44 (0)20 3368 3551  




Mark Brady / Neil Baldwin


www.sparkadvisorypartners.com














SI Capital Limited
(Broker)
Nick Emerson
 


Tel:  +44 (0)1483 413500
www.sicapital.co.uk



 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
AGRCKBDNDBKDBND