Uvenco UK plc Business Update and Related Party Transaction (7098G)
May 31 2017 - 7:01AM
UK Regulatory
TIDMUVEN
RNS Number : 7098G
Uvenco UK plc
31 May 2017
31 May 2007
Uvenco UK plc (the "Company")
Business update
The Company is pleased to announce that it has renewed its
contract with its important NHS customer, Heart of England, for a
further 5 years. Additionally, the Company has been awarded new
5-year contracts with Queen Elizabeth NHS and Milton Keynes NHS for
the provision of vending machines. The Company estimates the new
and renewed contracts will provide annualised revenues in the
region of GBP550,000.
The total number of machines to be installed is approximately
100, all to be fitted with media screens, cashless readers/Apple
pay and telemetry. The machines will be supplied by Unicum and
Westomatic and are intended to be installed in June 2017. Following
installation, the Company will seek to sublease the machines,
allowing the Company to secure upfront funding, to be repaid over
the term of the agreement.
In order to support the process of installation, the Company has
today entered into an agreement with Cleitus Investments Limited
("CIL"), a wholly owned subsidiary of Uvenco Group in Russia, for
the provison of an additional short term loan of GBP65,000 ("the
Loan"). The Loan, which is cash-only, will bear interest at 8% per
annum, is repayable within 60 days, and will be paid down once the
machines have been subleased or earlier from the Company cash
flows.
Related Party Transaction
The CIL is a related party of the Company. CIL is a wholly-owned
subsidiary of Uvenco Group in Russia, which is controlled by the
Belotserkovsky family with Boris Belotserkovsky, a non-executive
director of the Company and a member of the Belotserkovsky concert
party, acting as Chairman of the board. Sergei Kornienko, Chief
Executive of the Company, is Chief Executive of the Uvenco
Group.
The independent directors of the Company (being the directors,
with the exception of Boris Belotserkovsky and Sergei Kornienko),
having consulted with the Company's nominated adviser, Stockdale
Securities Limited, consider that the terms of the Loan Agreement
are fair and reasonable insofar as the Company's shareholders are
concerned.
The Audit report
The audit process is progressing and the Company expects to
announce its audited final results for the 9 months ended 31
December 2016 in June 2017. The results are in line with management
expectations.
Enquiries
Uvenco UK plc Tel No. 020 8879 8300
Sergei Kornienko
Peter Goodman
Stockdale Securities Tel No. 020 7601 6100
Tom Griffiths
Richard Johnson
This announcement contains inside information under the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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