Universe Group plc (LON:UNG), a leading developer and supplier of retail management solutions, payment and loyalty systems, has provided an update on trading for the year ended 31 December 2020 ahead of the expected release of its audited results in the final week of April 2021, together with a significant contract extension.
The Company is pleased to announce a five-year extension of an existing contract with a major international oil and gas group for the provision of loyalty services Europe-wide. This material extension provides further visibility for the Group over future revenues. The Group also remains encouraged by progress on the separate material project for another existing customer described in its announcement of 21 December 2021, which is currently in the pilot stage.
Subject to completion of audit, the Company expects to report revenue for the year ended 31 December 2020 in line with expectations at the time of its trading update announcement on 21 December 2020, with revenue for the second half of the year expected to be in line with that of the first half. However, adjusted EBITDA and adjusted profit before tax are now anticipated to be ahead of previous expectations. The Group is also in discussions regarding a temporary extension of its borrowing facility to support any potential increase in working capital requirements during the course of its ongoing projects.
The Group looks forward to providing a further update on its outlook at the time of release of its 2020 final results.
Jeremy Lewis, Chief Executive of Universe Group plc, commented: “COVID profoundly affected many aspects of our daily lives in 2020 and remains with us still. The retail sector felt the impact and so we are pleased to have navigated the pandemic challenges of last year as well as we did. Furthermore, it is very encouraging to see our major retail partners renewing their multi-year relationship with us now, a good indication of our standing as their managed service provider of choice.”