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Unigel Group PLC - Replacement Half-year Report


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Unigel Group plc · UNX

01/09/2023 17:03

Unigel Group PLC - Replacement Half-year Report
RNS Number : 1805L
Unigel Group PLC
01 September 2023
 

 

 

The 'Interim Results' announcement released on 31 August 2023 at 7:00 AM under RNS No 8648K has been reformatted.

 

All material details remain unchanged.

 

The full text is shown below.

 

 

 

 

Logo Description automatically generated

 

Unigel Group plc

(the "Group" or the "Company")

Interim Results

 

Unigel Group plc (AQSE: UNX), the manufacturer and supplier of materials used in the manufacture of telecommunication fibre optic cables announces its unaudited half-year results for the period ended 30 June 2023. Comparative data is for the post-acquisition six month period ended 31 December 2022.

 

Operational highlights

 

The Group continues to make progress in operational improvements:

 

·      New customer acquisitions in both our steel tape and thixotropic gel businesses

·      De-risking and diversifying our raw material sourcing base

·      Cost improvement in our logistics and material handling activities

·      Operating cost improvement through optimisation of production staff and administrative resources

 

 

Financial highlights

 

Key figures for the six months to 30 June 2023 with comparatives for the six months to 31 December 2022 were as follows:

 

·      Revenue of £17.95m (£18.83m)

·      Gross profit of £2.39m with a gross profit margin of 13.3% (£2.23m and 11.8%)

·      Administrative expenses of £1.47m (£1.73m)

·      Profit after tax of £0.63m (£0.32m)

·      Final dividend of 2.5p per share distributed post period end in July 2023

 

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

Enquiries:  

 

Unigel Group plc

 

Eric Chhoa

+81 7022 613 812

Gary Revel-Chion

 

+44 (0) 1273 612 122

Cairn Financial Advisers LLP (AQSE Corporate Adviser)

 

 

Jo Turner

+44 (0) 20 7213 0880

Ludovico Lazzaretti

 

 

 

 

 

 

 

 

Notes to Editors

Unigel Group plc is the holding company whose operating subsidiaries, Unigel (UK) Limited ("Unigel") and Unitape Limited ("Unitape") manufacture and distribute materials used in the manufacture of telecommunication fibre optic cables.

 

Unigel, in which the Group has a 60.0% holding, formulates, manufactures, and markets thixotropic gels primarily to the fibre optic cable industry. In addition, it also makes specialty gel products for the construction, green energy, and high voltage transmission apparatus markets.

 

Unitape, a wholly owned subsidiary of the Group, is one of the largest domestic manufacturers and suppliers of laminated steel tapes to the fibre optic cable industry in North America.

 

 

Chief Executive Officer's review

 

Despite a less favourable operating environment across most key markets, Unigel Group plc registered good overall results in all key performance indicators except revenue growth. The global fibre optic cable industry, which is a key market for the Group, registered negative industry growth of 3.4% in the first half of 2023.  Globally, there has been a slowdown in telecommunications network deployment including 5G networks as telcos postponed their network investment due to weaker business sentiment caused by macroeconomic concerns such as inflation, high interest rates and anaemic economic recovery in some major markets. 

 

However, there is a general industry consensus that network investment is expected to improve in 2024. The Group had implemented new initiatives to improve overall engagement with our customer base post Covid, and we are starting to see some tangible results from our business development initiatives of the past 2 years.  We continue to improve our cost structure and execute more efficiently across all business domains.

 

The Group is cautiously optimistic about our business performance in the second half of 2023.

 

 

Business review

 

Although turnover for the six months to 30 June 2023 reduced by just under 5% compared to the previous six months, gross margin improved as raw material prices and logistics costs became more stable. Administrative overheads fell by 15% compared to the previous six months with the major savings coming from more efficient staffing levels in production and an improved foreign exchange environment. Profit after tax rose by 94% to £0.63m in the six months to 30 June 2023. The Group balance sheet showed net assets of £2.88m as at 30 June 2023 compared to £2.32m on 31 December 2022.

 

 

Outlook

 

The global economy continues to be challenged by macroeconomic uncertainties including inflation, high interest rates, weaker investment sentiments and a docile economic recovery in China. Barring unforeseen circumstances, the Group continues to be cautiously optimistic about the outlook of our business performance for the second half of 2023.

 

 

 

Chairman

Sven Janne Sjoden

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





UNIGEL GROUP PLC

 



 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 



 

PERIOD ENDED 30 JUNE 2023

 



 


6 months to

 

6 months to

 


30 June 2023

 

31 December 2022

 


£

 

£

 





 

TURNOVER

          17,950,547

 

          18,828,803

 





 

Cost of sales

         (15,561,317)

 

         (16,602,974)

 





 

Gross profit

            2,389,230

 

            2,225,829

 





 

Administrative expenses

           (1,471,418)

 

           (1,731,478)

 





 

OPERATING PROFIT

               917,812

 

               494,351

 





 

Other income

 



 

Interest receivable and similar income

                   9,710

 

                 11,412

 

Interest payable and similar charges

                (75,573)

 

                (63,612)

 





 

PROFIT ON ORDINARY ACTIVITIES

 



 

BEFORE TAXATION

               851,949

 

               442,151

 





 

Tax on profit on ordinary activities

              (223,249)

 

              (118,604)

 





 

PROFIT FOR THE FINANCIAL PERIOD

 



 

FOR THE GROUP

               628,700

 

               323,547

 





 

Other comprehensive income for the period

 



 

(Loss)/gain on foreign exchange

                (71,051)

 

                 14,465

 

Negative goodwill on acquisition

                         -  

 

               666,205

 





 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

               557,649

 

            1,004,217

 





 

Minority interest

              (128,306)

 

                 22,712

 





 

TOTAL COMPREHENSIVE INCOME FOR THE GROUP

               429,343

 

            1,026,929

 





 





 

CONTINUING OPERATIONS

 



 

All of the group's activities were acquired during the previous period




 

 

 



 

 

 

 

 

 

 




UNIGEL GROUP PLC

 




 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 




 

30 JUNE 2023

 




 



30 June

 

31 December

 



2023

 

2022

 


Notes

£

 

£

 

FIXED ASSETS

 




 

Intangible assets


             508,113

 

             537,346

 

Tangible assets


          1,313,853

 

          1,379,072

 






 



          1,821,966

 

          1,916,418

 






 

CURRENT ASSETS

 




 

Stocks


          6,635,740

 

          8,757,545

 

Debtors


          4,665,990

 

          5,672,432

 

Cash at bank and in hand


             758,946

 

             730,860

 



        12,060,676

 

        15,160,837

 

CREDITORS

 




 

Amounts falling due within one year


        10,676,068

 

        14,440,267

 






 

NET CURRENT ASSETS

 

          1,384,608

 

             720,570

 






 

TOTAL ASSETS LESS CURRENT

 




 

LIABILITIES

 

          3,206,574

 

          2,636,988

 






 

CREDITORS

 




 

Amounts falling due after more than one year


               35,987

 

               12,539

 






 

PROVISION FOR LIABILITIES

 




 

Deferred tax


             289,008

 

             300,519

 






 

NET ASSETS

 

          2,881,579

 

          2,323,930

 






 






 

CAPITAL AND RESERVES

 




 

Called up share capital

3

               56,425

 

               56,425

 

Share premium


             469,011

 

             469,011

 

Profit & loss account


          1,236,272

 

             806,929

 






 

EQUITY ATTRIBUTABLE TO THE

 




 

OWNERS OF THE PARENT COMPANY

 

          1,761,708

 

          1,332,365

 






 

Minority interest


          1,119,871

 

             991,565

 






 

SHAREHOLDERS' FUNDS

 

          2,881,579

 

          2,323,930

 

 

 

 

UNIGEL GROUP PLC

 





UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 



30 JUNE 2023

 











Group

Share

Share

Retained

Minority

Total

 

capital

premium

earnings

interest

equity

 

£

£

£

£

£

Upon incorporation

                  100




                  100

Upon issue of shares net of costs

             56,325

           469,011



           525,336

Upon acquisitions



           666,205

        1,014,277

        1,680,482

Comprehensive income for the

 





period

 





Profit for the period



           323,547


           323,547

Minority interest in profit/(loss) for






the period



             22,712

           (22,712)

                     -  

Other comprehensive income for






the period



             14,465


             14,465

Dividends paid



         (220,000)


         (220,000)







Total comprehensive income for

 





the period at 31 December 2022

             56,425

           469,011

           806,929

           991,565

        2,323,930













Comprehensive income for the

 





period

 





Profit for the period



           628,700


           628,700

Minority interest in profit/(loss) for






the period



         (128,306)

           128,306

                     -  

Other comprehensive income for






the period



           (71,051)


           (71,051)

Dividends paid



                     -  


                     -  







Total comprehensive income for

 





the period at 30 June 2023

             56,425

           469,011

        1,236,272

        1,119,871

        2,881,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIGEL GROUP PLC

 



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

 



PERIOD ENDED 30 JUNE 2023

 





30 June

 

31 December



2023

 

2022



£

 

£

 Net cash inflow/(outflow) from

 



 operating activities

             243,614

 

            (569,222)






 Return on investments and

 



 servicing of finance

              (65,863)

 

              (62,872)






 Taxation

              (49,611)

 

            (114,927)






 Capital expenditure

              (61,894)

 

            (129,043)








               66,246

 

            (876,064)






 Financing

              (38,160)

 

             953,839






 Increase in cash in the period

               28,086

 

               77,775


 

 













 Reconciliation of net cash flow

 



 to movement in net debt

 








 Increase in cash in the period

               28,086

 

               77,775






 Cash inflow/(outflow) from movement in debt

               38,160

 

            (428,403)






 Change in net debt resulting from




 cash flows

               66,246

 

            (350,628)






 Opening net cash balances

            (528,426)

 

            (177,798)






 Closing net cash balances

            (462,180)

 

            (528,426)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIGEL GROUP PLC

 



NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

 



PERIOD ENDED 30 JUNE 2023

 








1.

 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FRON OPERATING ACTIVITIES

 








30 June

 

31 December



2023

 

2022



£

 

£







 Operating profit

             917,812

 

             494,351


 Depreciation and amortisation charges

             103,969

 

             114,412


 (Profit)/loss on fixed asset disposals

                       -  

 

               24,442


 Decrease/(increase) in stocks

          2,121,805

 

         (3,382,187)


 Decrease in debtors

          1,006,442

 

          1,088,864


 (Decrease)/increase in creditors

         (3,906,414)

 

          1,090,896







 Net cash inflow/(outflow) from operating activities

             243,614

 

            (569,222)











2.

 ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

 









30 June

 

31 December



2023

 

2022



£

 

£


 Returns on investments and servicing of finance

 




 Proceeds on sale of fixed assets

                       -  

 

               29,328


 Interest paid less interest received and similar income

              (65,863)

 

              (52,200)


 Dividends paid

                       -  

 

              (40,000)







 Net cash outflow for returns on investments and

 




servicing of finance

              (65,863)

 

              (62,872)







 Capital expenditure

 




 Purchase of intangible fixed assets

              (10,269)

 

                (7,012)


 Purchase of tangible fixed assets

              (51,625)

 

            (122,031)







Net cash outflow for capital expenditure

              (61,894)

 

            (129,043)







 Financing

 




 Proceeds from issue of shares

 -

 

             525,436


 (Loan repaid)/new loan received

              (38,160)

 

             428,403







Net cash inflow from financing

              (38,160)

 

             953,839











3.

 ANALYSIS OF CHANGES IN NET DEBT

 





At 01/01/23

Cash flow

At 30/06/23

 


£

£

£

 






Net cash: Cash at bank and in hand

             730,860

              28,086

             758,946







 Debt: Loan

         (1,259,286)

              38,160

         (1,221,126)







Cash at bank and in hand

            (528,426)

              66,246

            (462,180)

 

 

 

 

UNIGEL GROUP PLC

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

PERIOD ENDED 30 JUNE 2023

 

1.  ACCOUNTING POLICIES

 

     Company information

     The company is a public limited company incorporated in England and Wales (registered number 13934232) and its registered office is Unigel House, 7 Park View, Alder Close, Eastbourne, BN23 6QE.

 

     The principal activity of the group is the manufacture and sale of cable filling and flooding compounds, associated pumping and delivery equipment, and tapes.

 

     Accounting convention and basis of preparation

     The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

 

     The preparation of the consolidated financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group's accounting policies. Information is given in the accounting policies noted below. 

 

2.  EARNINGS PER SHARE

 

Earnings per share is calculated by dividing the profit after tax for the period by the weighted average number of ordinary shares in issue during the period.

 




30 June

 

     31 December




2023

 

2022




£

 

£








          Profit after tax


       628,700

 

       323,547








          Weighted average ordinary shares in issue

  11,285,000

 

  11,285,000








          Earnings per share

 

 5.57p

 

 2.87p

 

 

3.   CALLED UP SHARE CAPITAL

 


          Allotted, issued and fully paid:


 30 June

 31 December


          Number

 Class:

 Nominal

 2023

 2022




 value:

 £

 £








          11,285,000

 Ordinary

 £0.005

           56,425

          56,425

 

4.   FORWARD-LOOKING STATEMENTS

 

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

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