Interim surge at Universe
Article Date: Aug 20 2001Retail and information systems group Universe (UNG) has announced a fourfold first-half profits leap to £431,000 and launched First Remit, a new internet-based international cash transfer system, writes James Crux.
Aim-listed Universe was recreated in January last year as a risk management and on-line transaction services business focused on card fraud prevention, following the demerger of its Card Clear and TBR subsidiaries into the fully-listed Retail Decisions. In a buoyant six months to June, the company increased pre-tax profits from £111,000 to £431,000 on sales up £5.3 million to £27.3 million (£22 million).
Executive chairman Ray Mackie says Universe began the second half year well. Summer trading looks good at Master Change, the company's bureaux de change business, and orders at HTEC, its loyalty card and EPOS system arm, were strongly ahead.
Master Change was expanded further in the first half in England and France, with two new shops opened in London and one in Paris. Universe now has twenty eight Master Change branches, twelve of which are in Paris, six elsewhere in France with a further ten spread across Austria, Belgium and England.
Universe has established international headquarters in Dublin for First Remit, a new internet-based international cash transfer system, which is not expected to make profits in its first year. The system software for First Remit has been created by HTEC, which will then manage the operations, which are being established in the UK, Europe, Asia and the Far East.
After today's figures, house broker Teather & Greenwood forecasts full-year pre-tax profits (after goodwill and exceptionals) of £1.5 million on sales of £53 million. That implies earnings of 1.7p a share, putting the company on what some sector watchers consider a fairly demanding prospective p/e of 28.5, given the 23.78 sector average.
In early trading, the shares were 0.5p lower at 48.5p, compared to a 52-week high and low of 61.5p and 37.5p respectively.
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