REG - UniVision Eng Ltd - Trading Update

UniVision EngineeringAnnouncement

12/09/2018 07:06

RNS Number : 5186A
UniVision Engineering Ltd
12 September 2018
 


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 September 2018
 
UniVision Engineering Limited
 
("UniVision", the "Company" or the "Group")
 
Trading update  
 
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 the following trading update ahead of the Annual General Meeting to be held in Hong Kong on 20 September.
 
Trading in the first four months of the current financial year, is significantly ahead of the corresponding period last year.  The increase in both revenue and profitability had been predicted by the Board and had been highlighted in our trading update in April 2018 and again in our final results announcement and the Annual Report and Accounts published in August 2018.
 
As we have announced previously, the step change is due primarily to the major long-term installation contract with the MTR Corporation ("MTRC") in Hong Kong, which commenced installation in earnest in January 2018, following testing, having been signed in May 2017.  The current value of this contract is HKD407.3 million (£39.7 million) spread over the period until its planned completion in November 2023.    
 
Unaudited revenue for the Group, for the four months ended 31 July 2018 is approximately £4.5m (4 months to 31 July 2017: £1.5m). There was no contribution from MTRC in the comparable period last year.  The Directors expect this revenue run rate to continue for the rest of the financial year ending 31 March 2019.  Unaudited profit before tax has also increased significantly over the same period.
 
As mentioned in the Chairman's Statement in the 2018 Annual Report, as a result of the significant increase in work from the MTRC contract, the Group has 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").  This does not relate to any MTRC contracts, or any potential future work with MTRC and the Company remains qualified to tender for new contracts with MTRC if requested. As we have announced previously, the effect of this temporary suspension is insignificant given the Group's current workload, with MTRC in particular, however, the Company is applying to have this suspension lifted.
 
The Directors look forward to reporting further on the Group's progress in our interim results, which we anticipate releasing in November 2018.
 
 
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)


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



Nick Emerson




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
 
 
TSTUUSVRWKAKARR