TIDMUNX
RNS Number : 1805L
Unigel Group PLC
01 September 2023
The 'Interim Results' announcement released on 31 August 2023 at
7:00 AM under RNS No 8648K has been reformatted.
All material details remain unchanged.
The full text is shown below.
Unigel Group plc
(the "Group" or the "Company")
Interim Results
Unigel Group plc (AQSE: UNX), the manufacturer and supplier of
materials used in the manufacture of telecommunication fibre optic
cables announces its unaudited half-year results for the period
ended 30 June 2023. Comparative data is for the post-acquisition
six month period ended 31 December 2022.
Operational highlights
The Group continues to make progress in operational
improvements:
-- New customer acquisitions in both our steel tape and thixotropic gel businesses
-- De-risking and diversifying our raw material sourcing base
-- Cost improvement in our logistics and material handling activities
-- Operating cost improvement through optimisation of production
staff and administrative resources
Financial highlights
Key figures for the six months to 30 June 2023 with comparatives
for the six months to 31 December 2022 were as follows:
-- Revenue of GBP17.95m (GBP18.83m)
-- Gross profit of GBP2.39m with a gross profit margin of 13.3% (GBP2.23m and 11.8%)
-- Administrative expenses of GBP1.47m (GBP1.73m)
-- Profit after tax of GBP0.63m (GBP0.32m)
-- Final dividend of 2.5p per share distributed post period end in July 2023
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Enquiries:
Unigel Group plc
Eric Chhoa +81 7022 613 812
Gary Revel-Chion +44 (0) 1273 612 122
Cairn Financial Advisers LLP (AQSE Corporate
Adviser)
Jo Turner +44 (0) 20 7213 0880
Ludovico Lazzaretti
Notes to Editors
Unigel Group plc is the holding company whose operating
subsidiaries, Unigel (UK) Limited ("Unigel") and Unitape Limited
("Unitape") manufacture and distribute materials used in the
manufacture of telecommunication fibre optic cables.
Unigel, in which the Group has a 60.0% holding, formulates,
manufactures, and markets thixotropic gels primarily to the fibre
optic cable industry. In addition, it also makes specialty gel
products for the construction, green energy, and high voltage
transmission apparatus markets.
Unitape, a wholly owned subsidiary of the Group, is one of the
largest domestic manufacturers and suppliers of laminated steel
tapes to the fibre optic cable industry in North America.
Chief Executive Officer's review
Despite a less favourable operating environment across most key
markets, Unigel Group plc registered good overall results in all
key performance indicators except revenue growth. The global fibre
optic cable industry, which is a key market for the Group,
registered negative industry growth of 3.4% in the first half of
2023. Globally, there has been a slowdown in telecommunications
network deployment including 5G networks as telcos postponed their
network investment due to weaker business sentiment caused by
macroeconomic concerns such as inflation, high interest rates and
anaemic economic recovery in some major markets.
However, there is a general industry consensus that network
investment is expected to improve in 2024. The Group had
implemented new initiatives to improve overall engagement with our
customer base post Covid, and we are starting to see some tangible
results from our business development initiatives of the past 2
years. We continue to improve our cost structure and execute more
efficiently across all business domains.
The Group is cautiously optimistic about our business
performance in the second half of 2023.
Business review
Although turnover for the six months to 30 June 2023 reduced by
just under 5% compared to the previous six months, gross margin
improved as raw material prices and logistics costs became more
stable. Administrative overheads fell by 15% compared to the
previous six months with the major savings coming from more
efficient staffing levels in production and an improved foreign
exchange environment. Profit after tax rose by 94% to GBP0.63m in
the six months to 30 June 2023. The Group balance sheet showed net
assets of GBP2.88m as at 30 June 2023 compared to GBP2.32m on 31
December 2022.
Outlook
The global economy continues to be challenged by macroeconomic
uncertainties including inflation, high interest rates, weaker
investment sentiments and a docile economic recovery in China.
Barring unforeseen circumstances, the Group continues to be
cautiously optimistic about the outlook of our business performance
for the second half of 2023.
Chairman
Sven Janne Sjoden
UNIGEL GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
PERIODED 30 JUNE 2023
6 months 6 months
to to
30 June 31 December
2023 2022
GBP GBP
TURNOVER 17,950,547 18,828,803
Cost of sales (15,561,317) (16,602,974)
------------------------------ ----------------------------
Gross profit 2,389,230 2,225,829
Administrative expenses (1,471,418) (1,731,478)
------------------------------ ----------------------------
OPERATING PROFIT 917,812 494,351
Other income
Interest receivable and similar income 9,710 11,412
Interest payable and similar charges (75,573) (63,612)
------------------------------ ----------------------------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 851,949 442,151
Tax on profit on ordinary activities (223,249) (118,604)
------------------------------ ----------------------------
PROFIT FOR THE FINANCIAL PERIOD
FOR THE GROUP 628,700 323,547
Other comprehensive income for the period
(Loss)/gain on foreign exchange (71,051) 14,465
Negative goodwill on acquisition - 666,205
------------------------------ ----------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 557,649 1,004,217
Minority interest (128,306) 22,712
------------------------------ ----------------------------
TOTAL COMPREHENSIVE INCOME FOR THE GROUP 429,343 1,026,929
============================== ============================
CONTINUING OPERATIONS
All of the group's activities were acquired
during the previous period
UNIGEL GROUP PLC
UNAUDITED CONSOLIDATED STATEMENT OF
FINANCIAL
POSITION
30 JUNE 2023
30 June 31 December
2023 2022
Notes GBP GBP
FIXED ASSETS
Intangible assets 508,113 537,346
Tangible assets 1,313,853 1,379,072
---------------------------------- -----------------------
1,821,966 1,916,418
---------------------------------- -----------------------
CURRENT ASSETS
Stocks 6,635,740 8,757,545
Debtors 4,665,990 5,672,432
Cash at bank and in hand 758,946 730,860
---------------------------------- -----------------------
12,060,676 15,160,837
CREDITORS
Amounts falling due within one year 10,676,068 14,440,267
---------------------------------- -----------------------
NET CURRENT ASSETS 1,384,608 720,570
---------------------------------- -----------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 3,206,574 2,636,988
CREDITORS
Amounts falling due after more than one
year 35,987 12,539
PROVISION FOR LIABILITIES
Deferred tax 289,008 300,519
---------------------------------- -----------------------
NET ASSETS 2,881,579 2,323,930
================================== =======================
CAPITAL AND RESERVES
Called up share capital 3 56,425 56,425
Share premium 469,011 469,011
Profit & loss account 1,236,272 806,929
---------------------------------- -----------------------
EQUITY ATTRIBUTABLE TO THE
OWNERS OF THE PARENT COMPANY 1,761,708 1,332,365
Minority interest 1,119,871 991,565
---------------------------------- -----------------------
SHAREHOLDERS' FUNDS 2,881,579 2,323,930
================================== =======================
UNIGEL GROUP
PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
30 JUNE 2023
Group Share Share Retained Minority Total
capital premium earnings interest equity
GBP GBP GBP GBP GBP
Upon
incorporation 100 100
Upon issue of
shares
net of costs 56,325 469,011 525,336
Upon
acquisitions 666,205 1,014,277 1,680,482
Comprehensive
income
for the
period
Profit for the
period 323,547 323,547
Minority
interest in
profit/(loss)
for
the period 22,712 (22,712) -
Other
comprehensive
income for
the period 14,465 14,465
Dividends paid (220,000) (220,000)
Total
comprehensive
income for
the period at
31 December
2022 56,425 469,011 806,929 991,565 2,323,930
===================== ================== ====================== =================== ======================
Comprehensive
income
for the
period
Profit for the
period 628,700 628,700
Minority
interest in
profit/(loss)
for
the period (128,306) 128,306 -
Other
comprehensive
income for
the period (71,051) (71,051)
Dividends paid - -
Total
comprehensive
income for
the period at
30 June
2023 56,425 469,011 1,236,272 1,119,871 2,881,579
===================== ================== ====================== =================== ======================
UNIGEL GROUP PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
PERIODED 30 JUNE 2023
30 June 31 December
2023 2022
GBP GBP
Net cash inflow/(outflow) from
operating activities 243,614 (569,222)
Return on investments and
servicing of finance (65,863) (62,872)
Taxation (49,611) (114,927)
Capital expenditure (61,894) (129,043)
---------------------- ----------------------
66,246 (876,064)
Financing (38,160) 953,839
---------------------- ----------------------
Increase in cash in the period 28,086 77,775
====================== ======================
Reconciliation of net cash flow
to movement in net debt
Increase in cash in the period 28,086 77,775
Cash inflow/(outflow) from movement
in debt 38,160 (428,403)
---------------------- ----------------------
Change in net debt resulting from
cash flows 66,246 (350,628)
Opening net cash balances (528,426) (177,798)
---------------------- ----------------------
Closing net cash balances (462,180) (528,426)
====================== ======================
UNIGEL GROUP PLC
NOTES TO THE UNAUDITED CONSOLIDATED
CASH FLOW STATEMENT
PERIODED 30 JUNE 2023
1. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW
FRON OPERATING ACTIVITIES
30 June 31 December
2023 2022
GBP GBP
Operating profit 917,812 494,351
Depreciation and amortisation charges 103,969 114,412
(Profit)/loss on fixed asset disposals - 24,442
Decrease/(increase) in stocks 2,121,805 (3,382,187)
Decrease in debtors 1,006,442 1,088,864
(Decrease)/increase in creditors (3,906,414) 1,090,896
------------------------ -----------------------
Net cash inflow/(outflow) from operating
activities 243,614 (569,222)
======================== =======================
2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED
IN THE CASH FLOW STATEMENT
30 June 31 December
2023 2022
GBP GBP
Returns on investments and servicing
of finance
Proceeds on sale of fixed assets - 29,328
Interest paid less interest received
and similar income (65,863) (52,200)
Dividends paid - (40,000)
------------------------ -----------------------
Net cash outflow for returns on
investments
and
servicing of finance (65,863) (62,872)
======================== =======================
Capital expenditure
Purchase of intangible fixed assets (10,269) (7,012)
Purchase of tangible fixed assets (51,625) (122,031)
------------------------ -----------------------
Net cash outflow for capital expenditure (61,894) (129,043)
======================== =======================
Financing
Proceeds from issue of shares - 525,436
(Loan repaid)/new loan received (38,160) 428,403
------------------------ -----------------------
Net cash inflow from financing (38,160) 953,839
======================== =======================
3. ANALYSIS OF CHANGES IN NET DEBT
At 01/01/23 Cash At 30/06/23
flow
GBP GBP GBP
Net cash: Cash at bank and in hand 730,860 28,086 758,946
Debt: Loan (1,259,286) 38,160 (1,221,126)
------------------------ -------------------- -----------------------
Cash at bank and in hand (528,426) 66,246 (462,180)
======================== ==================== =======================
UNIGEL GROUP PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PERIOD ENDED 30 JUNE 2023
1. ACCOUNTING POLICIES
Company information
The company is a public limited company incorporated in England
and Wales (registered number 13934232) and its registered office is
Unigel House, 7 Park View, Alder Close, Eastbourne, BN23 6QE.
The principal activity of the group is the manufacture and sale
of cable filling and flooding compounds, associated pumping and
delivery equipment, and tapes.
Accounting convention and basis of preparation
The financial statements have been prepared under the historical
cost convention unless otherwise specified within these accounting
policies and in accordance with Financial Reporting Standard 102,
the Financial Reporting Standard applicable in the United Kingdom
and the Republic of Ireland and the Companies Act 2006.
The preparation of the consolidated financial statements in
compliance with FRS 102 requires the use of certain critical
accounting estimates. It also requires management to exercise
judgement in applying the group's accounting policies. Information
is given in the accounting policies noted below.
2. EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit after
tax for the period by the weighted average number of ordinary
shares in issue during the period.
30 June 31 December
2023 2022
GBP GBP
Profit after tax 628,700 323,547
Weighted average ordinary shares
in issue 11,285,000 11,285,000
Earnings per share 5.57p 2.87p
============== ==============
3. CALLED UP SHARE CAPITAL
Allotted, issued and fully paid: 30 June 31 December
Number Class: Nominal 2023 2022
value: GBP GBP
11,285,000 Ordinary GBP0.005 56,425 56,425
================= ================
4. FORWARD-LOOKING STATEMENTS
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Group's current expectations,
estimates and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Group's control, are difficult to predict,
and could cause actual results to differ materially from those
expressed or forecast in the forward-looking statements. The Group
cautions security holders and prospective security holders not to
place undue reliance on these forward-looking statements, which
reflect the view of the Group only as of the date of this
announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the
statements are made. The Group will not undertake any obligation to
release publicly any revisions or updates to these forward-looking
statements to reflect events, circumstances, or unanticipated
events occurring after the date of this announcement except as
required by law or by any appropriate regulatory authority.
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END
NEXFLFEEATILIIV
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September 01, 2023 12:03 ET (16:03 GMT)
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