UniVision says trading 'significantly ahead' in first four months
AIM-listed UniVision said on Wednesday that trading in the first four months of the year was "significantly ahead" ahead of the same period a year ago.
In an update ahead of its annual general meeting next week, the company - which supplies, designs, installs and maintains CCTV and surveillance systems - said the rise in revenue and profit had been predicted by the board and highlighted in its trading update back in April and again in its final results last month.
UniVision attributed the step change to the a long-term installation contract it secured with MTRC in Hong Kong, the current value of which is HKD407.3m (£39.7m).
Unaudited revenue for the four months ended 31 July 2018 is around £4.5m versus £1.5m for the same period last year, when there was no contribution from MTRC. The company said it expects this revenue run rate to continue for the rest of the financial year ending 31 March 2019. Meanwhile, unaudited pre-tax profit has also increased "significantly" over the same period.
"As mentioned in the chairman's statement in the 2018 Annual Report, as a result of the significant increase in work from the MTRC contract, the group has been temporarily suspended from tendering for additional new government contracts by the Hong Kong Government Works Branch under the management of Electrical and Mechanical Services Department.
"This does not relate to any MTRC contracts, or any potential future work with MTRC and the Company remains qualified to tender for new contracts with MTRC if requested. As we have announced previously, the effect of this temporary suspension is insignificant given the group's current workload, with MTRC in particular, however, the company is applying to have this suspension lifted."
At 1420 BST, the shares were up 29.6% to 1.94p.