UniVision Engineering Ltd Year end trading update (9692L)
April 24 2018 - 9:30AM
UK Regulatory
TIDMUVEL
RNS Number : 9692L
UniVision Engineering Ltd
24 April 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: 24 April 2018
UniVision Engineering Limited
("UniVision", the "Company" or the "Group")
Year end 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 for the year ended 31 March 2018.
Performance in the year
The year ended 31 March 2018, has been a transformational year
for the Group and we expect both revenue and profits for the year
to be ahead of 2017.
As we have announced previously, in May 2017, the Company won a
major contract with MTR Corporation ("MTRC"), the Hong Kong railway
company. With further agreed add-ons since May 2017, the total
current value of this contract is HK$407.3 million (approximately
GBP36.4 million at current exchange rates) spread over a six year
period, with an expected completion date of November 2023.
The first revenue on this contract was invoiced in January 2018
and we expect regular billing, on work completed and certified on a
monthly basis, from now until the end of the contract period; the
first payment from MTRC was received in mid-March 2018. In the year
ended 31 March 2018, the Group invoiced HK$5.1 million to MTRC,
leaving a further HK$402.2 million over the remaining five and a
half years of the contract. This back-loading of the billings is
due to the fact that we spent a number of months on design and
testing prior to commencing installation work as planned. We expect
the first full year of installations in the current financial year,
with a consequent significant increase in the Group's revenue.
To assist with funding of this significant expansion of the
business, during the period, the Company entered into a new
facility agreement with HSBC, to provide banking facilities,
including an invoice discounting/factoring facility of HK$45m,
which is being used exclusively for the trade receivables from
MTRC. Also, HSBC agreed to provide a trade facility of HK$8m. This
facility has provided additional working capital to ensure that the
MTRC contract can operate smoothly alongside the rest of the
Group's operations.
Other business
With the award of the major contract, MTRC is now the Group's
largest customer. During the financial year ended 31 March 2018,
the following non-MTRC contracts generated significant revenue in
construction (installation) business:-
-- Hong Kong-Zhuhai-Macao Bridge Project ("the Bridge Project");
-- Central Wanchai By Pass Project;
-- Liantang Traffic Control and Surveillance System Project; and
-- Modern Terminal CCTV System Upgrade Project ("the MTL Project").
The first three are the infrastructure projects of Hong Kong
Government where the main contractors are the sizeable private
enterprises. The Group is the sub-contractor for these projects.
The customer for the MTL Project is in the private sector; the
Company is the main contractor for this project.
As completion of main construction works for the Bridge Project
in February 2018, the Board expects more billing will be issued in
the financial year ending 31 March 2019.
Outlook
As we announced at the end of January 2018, the Board expects
the MTRC contract will lead to a step-change in both revenue and
profitability of the Group in the short to medium term. Whilst we
have seen some benefit in the last three months of the year ended
31 March 2018, it is the current financial year which should be the
first to see the full effect, and we look forward to updating
shareholders as the year progresses.
The Directors believe that our existing business, coupled with
the long term MTRC installation contract, provides a solid base
from which the Group can develop over the next few years; and one
which is significantly better than in previous years. We are
looking forward to reporting a full year's contribution from the
MTRC contract in the current financial year, and we will update on
our progress with MTRC with our final results and again at our
Annual General Meeting.
Announcement of final results
We anticipate being able to announce our final results, for the
year ended 31 March 2018, towards the end of July 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 Tel: +44 (0)7769
Director 906686
SPARK Advisory Partners Limited Tel: +44 (0)20
(Nominated Adviser) 3368 3551
Mark Brady / Neil Baldwin www.sparkadvisorypartners.com
SI Capital Limited Tel: +44 (0)1483
(Broker) 413500
www.sicapital.co.uk
Nick Emerson
This information is provided by RNS
The company news service from the London Stock Exchange
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