Interim Results
UniVision Engineering Ltd
19 December 2006
UniVision Engineering Limited
('UniVision', 'the Company' or 'the Group)
Interim Results
For the Six Months Ended 30 September 2006
UniVision Engineering Limited, the Hong Kong based designer and installer of
digital surveillance and integrated security systems, announces its Interim
results for the six months ended 30 September 2006.
The principal activities of the Company are the supply, design, installation and
maintenance of closed circuit television and surveillance systems, and the sale
of security related products.
During the period the Group has made considerable progress and is now well
positioned to sustain long term growth and is benefiting from the synergies
relating to its acquisition of T-Com Tech Co. Ltd. This has allowed the Group to
expand its reach geographically and further develop the product range. The
Group's business has been streamlined, benefiting from economies of scale and a
more efficient allocation of its resources, with a greater level of research and
development.
Highlights
Turnover up 133% to £3.5m (2005 : £1.5m)
Operating profit up 39% to £0.75m (2005: £0.54m)
Cash and cash equivalents £0.40m as at 30 September 2006 (2005 : £0.46 m)
Commenting on the results, Stephen Koo, Chairman of UniVision said: 'The current
financial year has begun well and the Company's performance is very encouraging.
In view of the strong demand for our products from our existing customers,
coupled with the positive sentiment towards digital surveillance products, the
management is confident of making further significant progresses over the coming
months.'
For further information visit www.uvel.com or contact:
Peter Ward
Director - Corporate Finance
Insinger de Beaufort
131 Finsbury Pavement
London EC2A 1NT
Tel 020 7190 7017
Matt Ridsdale/Simon Compton
Tavistock Communications
Tel 020 7920 3150
Chairman's Statement
I am pleased to report the results of UniVision Engineering Limited ('UniVision'
or the 'Company') and its subsidiary for the six months ended 30 September 2006.
We have been providing our customers with digital surveillance and integrated
security systems - 'total surveillance video solutions' - in the Pacific region
for a number of years and, as our product range and skills base have grown, we
are increasingly able to service clients on a global basis. The acquisition of a
majority shareholding in T-Com Tech. Co. Ltd in May of this year has added
momentum to our continued growth, and in particular with the launch of its new
product range we have gained market share in Taiwan, faster than many of our
competitors. T-Com has won a number of mandates to provide its CCTV products in
Taiwan as well as the PRC.
To accelerate our plans in Greater China, in October we also acquired 100% of
the issued share capital of Leader Smart Engineering Co. Ltd, and expanded our
presence in the PRC.
Our objectives are to further develop our expertise in producing high quality,
reliable and innovative digital video solutions and to consolidate our sales
network throughout the Greater China region. This will enable us to respond to
growing demand in the surveillance industry, both domestically and
internationally.
Financial Review
During the period turnover increased by 133% to £3.5m (2005: £1.5m). This growth
is attributable to increased sales to existing clients, an improvement in market
conditions and the acquisition of our interest in T-Com Tech. Co. Ltd.
Profit from operations increased by 39% to £0.75m (2005: £0.54m), net profit
increased by 30% to £0.70m (2005: £0.54m) and in turn basic and fully diluted
profit per share was 0.18p (2005 : 0.21p). The reduction in the profit per share
results from the issue of new ordinary shares at the time of admission to AIM.
The 0.21p profit per share reported for 2005 was prior to the Company's
admission to AIM.
Cash and cash equivalents at the period end were £0.40m (2005: £0.46m). The
reduced cash level was due mainly to an increase in the number of projects
undertaken by the Company and the level of funds committed to fulfilling those
contracts.
Business Review
Markets, Solutions and Products
Hybrid solutions, which connect IP and analogue cameras with CCTV Matrix
Controllers and DVRs, became mainstream in 2006 resulting in significant
opportunities for our Company.
The Directors believe that open platforms, integrating various systems such as
cameras, Matrix, DVRs, Card Access Systems and Fire Alarm Systems will represent
the next major development within the digital security market. UniVision is
among the pioneers of this movement, providing a total integrated security
solution, and the Company is expanding its sphere of business accordingly.
On the solutions side, an ongoing IT development programme is in place to cater
for the needs of UniVision's growing client base in the Asia Pacific region.
The Company is currently developing a new digital server series with PC and
embedded base solutions using our own designed integrated circuit microchips
(with video control, video overlay and multiplexer functions). This, together
with an open platform central monitoring system, is capable of integrating
various bands of DVRs, Access Control, Matrix and Fire Alarm Systems with high
level integration. Besides, the company is currently working on H.264 CoDec
(Digital Encoder and Decoder) with built-in video analysis algorithms in the
Homeland Security field such as intruder detection, loitering detection, left
behind objects and trip wire etc.
Acquisitions and Investments
The success of our investment in T-Com Tech. Co. Ltd in the first quarter of the
current financial year has reinforced the Company's strategy of acquiring
interests in companies with synergistic and/or strategic value. In October we
acquired 100% of Leader Smart Engineering Limited, which is based in Shanghai
and has strong business contacts in the PRC, and which will provide us with
potential for future growth.
For example, Leader Smart Engineering Limited has recently entered into a
contract with a value of approximately £350,000.00 for the design, supply and
commissioning of electrical and mechanical systems for the Mercedes Benz 3S
Centre at TianZho, Beijing City, PRC.
Prospects
The Company's performance domestically has been strong with new revenue streams
from both the public and private sector. The Company is committed to
international expansion particularly into the UK and European markets via our
London office and into the USA with local partners, whilst continuing to enhance
and expand our product and application development programmes.
The first half of the current financial year has been very encouraging. In view
of the strong demand for our products from our existing customers, coupled with
the positive sentiment towards digital surveillance products, the management are
confident of making further significant progress over the coming months.
The Board
The Directors are also pleased to announce the appointment, with effect from
today, of Richard Fernie as a UK based non-executive director. Mr. Fernie, aged
60, was until 2005 the Managing Director of Geoquip Holdings Ltd., a leading
company in the provision of electronic perimeter detection systems.
There is no other information relating to Mr. Fernie which would otherwise fall
to be disclosed under the provisions of paragraph (g) of Schedule 2 to the AIM
Rules.
Consolidated Income Statement (Unaudited)
For the six months ended 30 September 2006
Six months Six months
ended 30 ended 30
September 2006 September 2005
---------------- ----------------
£'000 £'000
Turnover 3,520 1,460
Cost of Sales (2,195) (816)
---------------- ----------------
Gross Profit 1,325 644
Other Revenue 79 126
Distribution
Costs (29) (36)
Administrative
Expenses (630) (194)
---------------- ----------------
Profit From
Operations 745 540
Finance Costs (41) (2)
---------------- ----------------
Profit before taxation 704 538
Taxation - -
---------------- ----------------
Profit for the period 704 538
================ ================
Profit attributable to :
Equity holders 580 538
of the parent
Minority
Interests 124 -
---------------- ----------------
704 538
================ ================
Earnings per Share pence pence
Basic and Diluted 0.18 0.21
Consolidated Balance Sheet ( Unaudited)
as at 30 September 2006
As at 30 As at 30
September 2006 September 2005
------------ ------------
£'000 £'000
ASSETS
Non-Current Assets
Plant and equipment 154 12
Intangible assets 125 4
Goodwill 300 -
------------ ------------
579 16
------------ ------------
Current assets
Inventories 813 427
Due from construction contract
customers 966 395
Trade receivables 2,462 512
Deposit, prepayment and 2,100 1,258
other receivables
Cash and cash equivalents 406 455
------------ ------------
6,747 3,047
------------ ------------
Total assets 7,326 3,063
============ ============
LIABILITIES
Current liabilities
Due to construction contract
customers 281 386
Trade payables and accruals 2,827 590
------------ ------------
3,108 976
------------ ------------
Total liabilities 3,108 976
------------ ------------
Net assets 4,218 2,087
============ ============
EQUITY
Capital and reserves
Share Capital 1,451 1,168
Share Premium 1,279 -
Special Capital Reserve 143 143
Retained Earnings 1,225 673
Exchange Differences (193) 103
------------ ------------
3,905 2,087
Minority Interests 313 -
------------ ------------
Total equity 4,218 2,087
============ ============
Consolidated Statement of Changes in Equity (Unaudited)
For the six months ended 30 September 2006
Special
Share Capital Share Premium Retained Earnings Capital Exchange Minority Total
Reserve Differences Interests equity
------ ------- -------- ------- -------- ------ -------
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
1 April 2005 1,168 - 135 143 (19) - 1,427
Net profit
for the period - - 538 - - - 538
Effect of
translation - - - - 122 - 122
------ ------- -------- ------- -------- ------ -------
Balance at
30 September
2005 1,168 - 673 143 103 - 2087
Issue of
shares upon
listing 235 1,280 - - - - 1,515
Issue of
shares upon
placing 48 262 - - - - 310
Share issue
costs - (263) - - - - (263)
Net loss
for the period - - (28) - - - (28)
Effect of
translation - - - - (8) - (8)
------ ------- -------- ------- -------- ------ -------
Balance at
31 March 2006 1,451 1,279 645 143 95 - 3,613
Acquisition
of a subsidiary - - - - - 189 189
Net profit
for the period - - 580 - - 124 704
Effect of
translation - - - - (288) - (288)
------ ------- -------- ------- -------- ------ -------
Balance at
30 September 1,451 1,279 1,225 143 (193) 313 4,218
2006
====== ======= ======== ======= ======== ====== =======
Consolidated Cash Flow Statement (Unaudited)
For the six months ended 30 September 2006
Six months Six months
ended 30 ended 30
September 2006 September 2005
---------- ----------
£'000 £'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 704 538
Adjustments for:
Depreciation 20 4
Interest income - (6)
---------- ----------
Operating profit before working capital
changes 724 536
(Increase)/decrease in inventories (267) 190
(Increase)/decrease in trade receivables (722) 305
Decrease in amounts due from construction
contract customers 966 24
Increase in deposits, prepayments
and other receivables (834) (929)
(Decrease)/increase in amounts due to
construction contract customers (308) 133
Decrease in trade payables and accruals (188) (223)
---------- ----------
Net cash (used in ) / from operations (629) 36
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of plant and equipment (30) (6)
Acquisition of intangible assets - (4)
Acquisition of a subsidiary, net of cash
and cash equivalents acquired (408) -
Interest received - 6
Decrease in pledged deposits - 10
---------- ----------
Net cash (used in ) / from investing
activities (438) 6
---------- ----------
NET (DECREASE)/ INCREASE IN CASH AND
CASH EQUIVALENTS (1,067) 42
EFFECT OF CHANGES IN FOREIGN EXCHANGE 59 31
CASH AND CASH EQUIVALENTS AT BEGINNING OF
THE PERIOD 1,414 382
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 406 455
========== ==========
Notes to the Interim financial statements for the six months ended 30 September
2006
1. Basis of preparation
The unaudited interim financial statements for the six months ended 30 September
2006 have been prepared under International Financial Reporting Standards
('IFRS') using the policies consistent with those applied to the annual
financial statements for the year ended 31 March 2006. The interim financial
statements, together with the comparative information contained in this report
for the six months ended 30 September 2006, does not constitute the statutory
accounts of the Company.
2. Earnings per share
The calculation of basic and diluted earnings per share is based on the net
profit attributable to equity holders of the parent for the period ended 30
September 2006 of £579,302 ( 2005 : £538,298), and the weighted average of
323,313,333 ( 2005 : 262,480,000 ) ordinary shares in issue during the period.
There were no potential dilutive ordinary shares outstanding during the period (
2005 : Nil )
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