Universe Group sees 'solid' Q1 trading

Retail management solutions provider Universe Group said on Tuesday that first-quarter trading had been "solid" and in line with expectations as the group was successful in maintaining material service levels for customers during the Covid-19 pandemic.

Universe Group said it had a strong revenue pipeline, with £5.2m in completed sales and a further £16.8m in topline growth visible through existing recurring and repeatable revenue contracts and its order book.

The AIM-listed group did note that in the current context, it was mindful that the final value, terms and timing of delivery of its order book remained subject to ongoing discussions.

"Because of the current market disruptions, the group is prudently assuming that some non-critical work planned for customers in this financial year will be delayed by them until the crisis passes, quite possibly for a period lasting into next year," said Universe.

"It is difficult to estimate these possible delays until there is greater clarity regarding the duration of public lockdowns."

Universe added that new sales to new retail customers were also unlikely until the situation improves, but equally, material customer losses were not expected.

As of 0850 BST, Universe shares were up 25.61% at 3.58p.