Universe Group PLC Disposal (8152S)

TIDMUNG

RNS Number : 8152S

Universe Group PLC

05 December 2012

AIM: UNG

UNIVERSE GROUP PLC

("Universe" or the "Company")

Disposal of Manufacturing Division

The Board of Universe, a leading developer and supplier of payment and on-line loyalty systems to the retail sector, is pleased to announce that it has today entered into an agreement to sell the trade and certain assets of its Contract Electronics Manufacturing Division ("CEM" or the "Division") to Custom Keyboard Electronics Limited ("CKE") for a cash consideration of GBP65,000 payable on completion (the "Disposal"). The Disposal follows a thorough review of the strategic options for the Division.

The Division recorded approximately GBP1.6 million of revenue in the year to 31 December 2011 and an operating loss of approximately GBP0.1 million (before allocated overheads of approximately GBP0.3 million, which will be largely absorbed by the continuing operations of the Company), and at that date the book value of assets sold was GBP0.1 million. CKE has undertaken to purchase inventory from Universe, as and when required by CKE. The Disposal is expected to be completed on 20 December 2012 and the net proceeds will be deployed as working capital within the continuing operations of Universe.

Robert Goddard, Chairman commented:

"The manufacture of electronic components was a core part of the Group's business until the late 1990's. At about that time, 'managed software solutions' for payments and loyalty programmes began to dominate and is now Universe's strategic priority. Accordingly, we are delighted to have found in CKE a specialist that will carry on the high quality manufacturing for which CEM has been renowned.

More importantly, we are pleased that the disposal of CEM will leave Universe free to focus on its core business."

For further information:

 
 Universe Group plc             T: +44 2380 689 510 
 Robert Goddard, Chairman 
 Stephen McLeod, Chief 
  Executive 
 
 finnCap                        T: +44 2072 200 500 
 Stuart Andrews / Henrik Persson (Corporate Finance) 
 Simon Starr (Corporate 
  Broking)

This information is provided by RNS

The company news service from the London Stock Exchange

END

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