Uvenco in line with expectations at end of 2016
Uvenco issued a trading update on Monday, based on its unaudited management accounts for the nine month period ended 31 December, following the change in year-end from 31 March to 31 December.
General Retailers
3,864.64
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Uvenco UK
1.25p
14:14 28/09/18
The AIM-traded firm reported consolidated revenues for the nine months to 31 December of £10.3m, which it said reflected the seasonality profile of the period, which excluded the typically higher revenue months of January to March.
It said following the turnaround progress reported in its interim results last November, the company expected to be positive at an EBITDA level for the period.
EBITDA was expected to be in line with management expectations, and snd similarly net income and earnings per share were positive and in line with management expectations.
“Secured borrowings decreased by 52% from £2.5m at 31 March to £1.2m at 31 December, reflecting the continuing deleveraging of the balance sheet and - in particular - the impact of the refinancing in August 2016,” the board said in a statement.
“Following the period end, the company announced a £0.41m loan agreement with Uvenco Group in Russia.”
At the end of January the Company completed the sale of the premises at Corby, which realised £0.33m - £0.24m of which had been used to reduce the borrowings, resulting in secured borrowings of £1m and net debt of £1.2m at 31 January.
“Management has also engaged agents to market the Drinkmaster property at Liskeard on a sale and leaseback basis.
“The property will be marketed at £0.63m and the proceeds will be used to further reduce group debt.”
Uvenco said it was also exploring refinancing alternatives to reduce the interest cost, and would update the market in due course.