Unigel Group PLC - Half-year Report

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 2025. Comparative data is for the period ended 30 June 2024 and the year ended 31 December 2024.

Operational highlights

The Group continues to make good progress in various business areas:

·      Successful transition and ramp up of Unigel UK's partner plant in Malaysia

·      Continued cost and operational improvements in Unitape's operations in the US

·      Market share gains in our steel tape business with additional mandates from established market base

·      Profit margin enhancement through higher margins product mix, cost controls and productivity gains in our supply chain

Financial highlights

Key figures for the six months to 30 June 2025 with comparatives for the six months to 30 June 2024 and the year to 31 December 2024 were as follows:

                                                                       6 months        6 months             Year

                                                                        30.06.25         30.06.24            31.12.24

Revenue                                                           £18.89m         £14.80m            £29.17m

Gross profit                                                       £3.70m         £3.01m             £5.90m

Gross profit percentage                                      19.6%          20.3%               20.2%

Administrative expenses                                     £1.92m         £1.78m             £3.82m

Profit after tax                                                    £1.53m         £0.93m             £1.66m

Dividends of 1.5p and 2.0p per share were distributed in November 2024 and April 2025 respectively.

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:  

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, a wholly owned subsidiary of the Group, 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 continued global uncertainties and a continued anaemic global fibre optic cable market, our businesses outperformed expectations in the first half of 2025.  Most of our gains were in the steel tape segment in the US, however we also saw strong sales coming through in our thixotropic gel and cable components trading business in certain selected markets.

The Group continued to see lethargic demand growth across most major markets in the first half of 2025 in the markets where it operates.  Sentiment remains weak with continued slowdown in telecommunications network deployment as major telco operators remain cautious due to persistent high interest rates and weak and uncertain economic recovery in most markets. 

Our business initiatives to improve overall engagement with our customer base and focus on operational efficiency had brought tangible results to our margin contribution in the first half of 2025 despite increased logistics and tariff cost due to geopolitical development. We continue to be focused on cost and operational efficiency across all business areas.

In addition, the Group had invested in capacity growth and new product introduction in the first half of the year. All these initiatives will strengthen our future business prospects. I am also happy to report that we had successfully ramped up production with our Malaysian tolling plant which will contribute to our bottom-line for the rest of 2025.

The Group is maintaining an optimistic but cautious outlook for the remainder of 2025.

Business review

Turnover for the six months to 30 June 2025 grew by 27.7% compared to the previous six months, gross margin improved significantly as raw material prices and logistics costs continued to become more stable. Administrative overheads rose by 7.6% compared to the previous six months mainly due to an increase in staff costs as a result of a higher level of activity. Profit after tax rose by 65.3% to £1.53m in the six months to 30 June 2025. The Group balance sheet showed net assets of £6.03m as at 30 June 2025 compared to £4.40m on 30 June 2024.

Outlook

With so many uncertainties brought about by tariff and non-tariff policies of the US during the period under review, the outlook on the global economy remains cautious due to geopolitical conflicts, trade tensions, inflation pressure and a longer than anticipated high-interest rate environment dominating the business headlines. In our industry, the proliferation of AI and AI investment together with broadband infrastructure investments has provided optimism to the Group and its customer base.

Chairman

Sven Janne Sjoden

UNIGEL GROUP PLC

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

PERIOD ENDED 30 JUNE 2025

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. 

  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.