Universe Group lowers expectations due to delayed high-value contracts

Point-of-sale, payment and loyalty systems company Universe Group updated the market on its trading on Monday, ahead of the end of its financial year on 31 December, reiterating that its out turn for the year has been dependent on its ability to close and execute a “small number” of high value contracts before year-end.

The AIM-traded firm said it was now clear that was unlikely to happen in time.

As a result, for the year to 31 December the group's revenues were now expected to be approximately £19.5m with an adjusted EBITDA of around £2.7m.

At 31 December 2017, Universe said it expected to have net cash of close to £1.5m.

“It is disappointing not to have executed the deals we had planned in this financial period, even though we believe they will happen in early 2018,” said chief executive Jeremy Lewis.

“The business continues to operate with a strong recurring revenue base, however the arrival of material new contracts can cause swings in our financial results.

“We have accordingly adopted a prudent approach to forecasting these.”