Notice of Contract Termination

RNS Number : 3105P

UniVision Engineering Ltd

17 June 2022

 

17 June 2022

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended.  On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

UniVision Engineering Limited

("UniVision", the "Company" or the "Group")

Notice of Contract Termination

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 that it has received formal notice this week of termination of its contract with MTR Corporation Ltd ("MTRC"), for the replacement works of the CCTV systems for MTRC's railway lines in Hong Kong, for alleged breach of contract; the Company contests this and continues to try and negotiate with MTRC to resolve the matter.   

This original MTRC contract was awarded to the Company five years ago, in May 2017, with an expected completion date of November 2023, but with subsequent contract add-ons this had been expected run until July 2024. Over the period to date it has represented a step-change to the Group's long-established business and termination of the contract would represent a significant loss of future revenue and profitability for the Group.  However, the Group would be able to re-deploy resources from this contract to other projects to mitigate this reduction.  The termination of the MTRC contract is effective from 20 June 2022, but the effect of this will not be immediately apparent as there is a time lag between works being completed and being certified and ultimately paid. 

Further updates will be made in due course.

For further information visit www.uvel.com or contact :

UniVision Engineering Limited	Tel: [phone]
Stephen Koo, Chairman	www.uvel.com
Danny Kwok Fai Yip, Finance Director
SPARK Advisory Partners Limited   (Nominated Adviser)	Tel: [phone]
Mark Brady / Neil Baldwin	www. sparkadvisorypartners.com
SI Capital Limited (Broker)	Tel:  [phone] www.sicapital.co.uk

Nick Emerson

 

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