Universe Group plc (LON:UNG), a leading developer and supplier of retail management solutions, payment and loyalty systems, has given the following update with regard to the year to 31 December 2020.
The Company wishes to thank its employees, customers and wider stakeholders for their efforts and support during a challenging year. The Company undertook significant work in the first half to enable the business to continue to operate effectively under the restrictions imposed in the face of the pandemic. This allowed the Company to maintain its operations through the year even though a key component of Universe’s offering requires field engineers to work closely with customers on-site.
Revenue for the second half of the year is expected to be in line with that of the first half. As stated at the time of the interim results in September, key to the second half was the roll-out of a material project for an existing customer where work is ongoing. Revenues from this project are now expected to be recognised in the first half of 2021 but the investment made in the project must be recognised in the current financial year. Despite this delay, the costs of maintaining COVID-19 resilience, and an increased level of investment, the Company still expects to report a modest level of adjusted EBITDA profitability for the full year. The Company has a strong financial position that can support this activity and expects to close the year with a temporary net debt position comfortably within agreed facility limits.
The second half of this year saw the successful launch of a new payment services client, being a new contract won in the first half. The integration of the Company’s acquisition of Celtech has been completed advancing the Company’s technological roadmap considerably and resulting in a compelling customer proposition. The Company has continued to invest in its product offering and technical capabilities throughout the year and will continue to do so, leaving the Group well positioned to meet expected demand from new and existing customers in the coming financial year.
Jeremy Lewis, Chief Executive of Universe Group plc, commented: “The Company’s employees and management have worked hard this year to keep customer service levels up in difficult circumstances. We are working on a small number of high-value projects while continuing to focus on a significant level of recurring and repeating business. We have a resilient financial position and are cautiously optimistic about our prospects for next year. We look forward to providing further updates as the new year progresses.”
