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 2024. Comparative
data is for the period ended 30 June 2023 and the year ended 31
December 2023.
Operational
highlights
The Group continues to make good progress in
various business areas:
· Successful
transition of Unigel UK's Tolling services in its Malaysian
operations
· Operational
improvement in operations and logistics in Unitape's
operations
· Market share
gains in our steel tape business
· Improvement in
profit margins through higher margins product mix, cost controls
and productivity gains
Financial
highlights
Key figures for the six months to 30 June 2024
with comparatives for the six months to 30 June 2023 and the year
to 31 December 2023 were as follows:
6
months 6
months
Year
30.06.24
30.06.23
31.12.23
Revenue
£14.80m
£17.95m
£28.47m
Gross
profit
£3.01m
£2.39m
£4.09m
Gross profit
percentage
20.3%
13.3%
14.4%
Administrative
expenses
£1.78m
£1.47m
£3.17m
Profit after
tax
£0.93m
£0.63m
£0.61m
A dividend of 2.5p per share was distributed 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 is now a wholly owned subsidiary of the
Group following the acquisition of the minority shareholder's 40%
holding. Unigel 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 weaker start in the global fibre
optic cable industry, our businesses outperformed expectations in
the first half of 2024. Most of the gains were in the steel
tape segment in the US, but we also managed to chalk up strong
sales in the thixotropic gel and cable components trading business
in certain selected markets.
The global fibre optic cable industry, which is
a key market for the Group, continued to show lethargic demand
growth across most major markets in the first half of 2024.
We see a continued slowdown in telecommunications network
deployment as telcos remain cautious due to inflation, persistent
high interest rates and anaemic economic recovery in most
markets.
Our business initiatives to improve overall
engagement with our customer base and focus on operational
efficiency are starting to see tangible results in our bottom line
for the first half of 2024 despite increased logistics cost due to
geopolitical development. We continue to improve our cost structure
and execute more efficiently across all business
domains.
The Group is maintaining an optimistic but
cautious outlook for the remainder of 2024.
Business
review
Although turnover for the six months to 30 June
2024 reduced by 17.6% 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 21.3% compared to the previous six months mainly due to
exchange rate gains and losses across the two periods. Profit after
tax rose by 47.7% to £0.93m in the six months to 30 June 2024. The
Group balance sheet showed net assets of £4.40m as at 30 June 2024
compared to £2.88m on 30 June 2023 and £2.57m on 31 December
2023.
Outlook
According to the IMF, the global economy is
expected to grow by 3.2 percent in 2024 whilst macroeconomic
uncertainties continue due to geopolitical conflicts, trade
tensions, persistent inflation and a longer than anticipated
high-interest rate environment. In our industry, we do see some
optimistic signs in certain markets as some of the global telcos
start to normalise their capital investment from their lower
investment levels of 2022 and 2023.
Chairman
Sven Janne Sjoden
UNIGEL GROUP PLC
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
PERIOD ENDED 30 JUNE 2024
|
|
|
|
|
|
6 months to
|
6 months
to
|
Year
to
|
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
£
|
£
|
£
|
|
|
|
|
|
TURNOVER
|
14,795,303
|
17,950,547
|
28,465,064
|
|
|
|
|
|
Cost of sales
|
(11,784,680)
|
(15,561,317)
|
(24,378,323)
|
|
|
|
|
|
Gross profit
|
3,010,623
|
2,389,230
|
4,086,741
|
|
|
|
|
|
Administrative expenses
|
(1,784,890)
|
(1,471,418)
|
(3,165,984)
|
|
|
|
|
|
OPERATING PROFIT
|
1,225,733
|
917,812
|
920,757
|
|
|
|
|
|
Other income
|
|
|
|
Interest receivable and similar
income
|
77,323
|
9,710
|
24,204
|
Interest payable and similar
charges
|
(24,142)
|
(75,573)
|
(129,464)
|
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION
|
1,278,914
|
851,949
|
815,497
|
|
|
|
|
|
Tax on profit on ordinary
activities
|
(350,602)
|
(223,249)
|
(206,691)
|
|
|
|
|
|
PROFIT FOR THE FINANCIAL PERIOD FOR THE
GROUP
|
928,312
|
628,700
|
608,806
|
|
|
|
|
|
Other comprehensive income
for the period
|
|
|
|
(Loss)/gain on foreign
exchange
|
7,908
|
(71,051)
|
(80,476)
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
|
936,220
|
557,649
|
528,330
|
|
|
|
|
|
Minority interest
|
(58,403)
|
(128,306)
|
(89,094)
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE GROUP
|
877,817
|
429,343
|
439,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTINUING OPERATIONS
|
|
|
|
All amounts were derived from
continuing operations.
|
|
|
|
UNIGEL GROUP PLC
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
|
|
30
JUNE 2024
|
|
|
|
|
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
Notes
|
£
|
£
|
£
|
Fixed assets
|
|
|
|
|
Intangible assets
|
|
611,001
|
508,113
|
480,612
|
Tangible assets
|
|
1,237,626
|
1,313,853
|
1,256,611
|
|
|
|
|
|
|
|
1,848,627
|
1,821,966
|
1,737,223
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Stocks
|
|
5,973,809
|
6,635,740
|
4,979,027
|
Debtors
|
|
5,707,802
|
4,665,990
|
2,711,296
|
Cash at bank and in hand
|
|
1,242,385
|
758,946
|
402,568
|
|
|
12,923,996
|
12,060,676
|
8,092,891
|
CREDITORS
|
|
|
|
|
Amounts falling due within one
year
|
|
10,103,802
|
10,676,068
|
6,981,569
|
|
|
|
|
|
NET
CURRENT ASSETS
|
|
2,820,194
|
1,384,608
|
1,111,322
|
|
|
|
|
|
TOTAL ASSETS LESS CURRENT LIABILITIES
|
|
4,668,821
|
3,206,574
|
2,848,545
|
|
|
|
|
|
CREDITORS
|
|
|
|
|
Amounts falling due after more than
one year
|
|
20,478
|
35,987
|
23,832
|
|
|
|
|
|
PROVISION FOR LIABILITIES
|
|
|
|
|
Deferred tax
|
|
250,262
|
289,008
|
254,578
|
|
|
|
|
|
Net
assets
|
|
4,398,081
|
2,881,579
|
2,570,135
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND RESERVES
|
|
|
|
|
Called up share capital
|
3
|
72,291
|
56,425
|
56,425
|
Share premium
|
|
2,483,933
|
469,011
|
469,011
|
Profit & loss account
|
|
1,865,693
|
1,257,973
|
992,961
|
Translation reserve
|
|
(23,836)
|
(21,701)
|
(28,921)
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO THE
|
|
|
|
|
OWNERS OF THE PARENT COMPANY
|
|
4,398,081
|
1,761,708
|
1,489,476
|
|
|
|
|
|
Minority interest
|
|
-
|
1,119,871
|
1,080,659
|
|
|
|
|
|
SHAREHOLDERS' FUNDS
|
|
4,398,081
|
2,881,579
|
2,570,135
|
UNIGEL GROUP PLC
|
|
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
|
|
|
|
30
JUNE 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
|
Share
|
Retained
|
Translation
|
Minority
|
Total
|
|
capital
|
premium
|
earnings
|
reserve
|
interest
|
equity
|
|
£
|
£
|
£
|
£
|
£
|
£
|
At 1 January 2023
|
56,425
|
469,011
|
780,745
|
26,184
|
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
|
|
|
(23,166)
|
(47,885)
|
|
(71,051)
|
|
|
|
|
|
|
|
Total comprehensive income for
|
|
|
|
|
|
|
the
period at 30 June 2023
|
56,425
|
469,011
|
1,257,973
|
(21,701)
|
1,119,871
|
2,881,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2024
|
56,425
|
469,011
|
992,961
|
(28,921)
|
1,080,659
|
2,570,135
|
Upon issue of shares
|
15,866
|
2,014,922
|
|
|
|
2,030,788
|
Upon acquisitions
|
|
|
|
|
(1,139,062)
|
(1,139,062)
|
Comprehensive income for
the
|
|
|
|
|
|
|
period
|
|
|
|
|
|
|
Profit for the period
|
|
|
928,312
|
|
|
928,312
|
Minority interest in profit/(loss)
for
|
|
|
|
|
|
|
the period
|
|
|
(58,403)
|
|
58,403
|
-
|
Other comprehensive income
for
|
|
|
|
|
|
|
the period
|
|
|
2,823
|
5,085
|
|
7,908
|
|
|
|
|
|
|
|
Total comprehensive income for
|
|
|
|
|
|
|
the
period at 30 June 2024
|
72,291
|
2,483,933
|
1,865,693
|
(23,836)
|
-
|
4,398,081
|
UNIGEL GROUP PLC
|
|
|
|
|
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
|
|
|
|
|
PERIOD ENDED 30 JUNE 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
|
£
|
£
|
£
|
Net cash inflow/(outflow) from
|
|
|
|
|
operating activities
|
1
|
575,781
|
243,614
|
1,181,246
|
|
|
|
|
|
|
Return on investments and
|
|
|
|
|
servicing of finance
|
2
|
(16,819)
|
(65,863)
|
(382,459)
|
|
|
|
|
|
|
Taxation
|
|
(159,938)
|
(49,611)
|
(274,099)
|
|
|
|
|
|
|
Capital expenditure
|
2
|
(44,084)
|
(61,894)
|
(124,322)
|
|
|
|
|
|
|
|
|
|
354,940
|
66,246
|
400,366
|
|
|
|
|
|
|
Financing
|
2
|
484,877
|
(38,160)
|
(728,658)
|
|
|
|
|
|
|
Increase/(decrease) in cash in the
period
|
|
839,817
|
28,086
|
(328,292)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash flow
|
|
|
|
|
to movement in net debt
|
3
|
|
|
|
|
|
|
|
|
|
Increase/(decrease) in cash in
the period
|
|
839,817
|
28,086
|
(328,292)
|
|
|
|
|
|
|
Cash inflow/(outflow) from
movement in debt
|
|
239,411
|
38,160
|
728,658
|
|
|
|
|
|
|
Change in net debt resulting
from cash flows
|
|
1,079,228
|
66,246
|
400,366
|
|
|
|
|
|
|
Opening net cash balances
|
|
(128,060)
|
(528,426)
|
(528,426)
|
|
|
|
|
|
|
Closing net cash balances
|
|
951,168
|
(462,180)
|
(128,060)
|
UNIGEL GROUP PLC
|
|
|
|
|
NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW
STATEMENT
|
|
|
PERIOD ENDED 30 JUNE 2024
|
|
|
|
|
|
|
|
|
|
|
1.
|
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW
FRON OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
|
£
|
£
|
£
|
|
|
|
|
|
|
|
Operating profit
|
|
1,225,733
|
917,812
|
920,757
|
|
Depreciation and amortisation
charges
|
|
107,474
|
103,969
|
202,278
|
|
Loss on fixed asset
disposals
|
|
65
|
-
|
33,318
|
|
(Increase)/decrease in
stocks
|
|
(994,782)
|
2,121,805
|
3,778,518
|
|
Decrease/(increase) in
debtors
|
|
(2,996,506)
|
1,006,442
|
2,961,136
|
|
Increase/(decrease) in
creditors
|
|
3,233,797
|
(3,906,414)
|
(6,714,761)
|
|
|
|
|
|
|
|
Net cash inflow from operating
activities
|
|
575,781
|
243,614
|
1,181,246
|
|
|
|
|
|
|
|
|
|
|
|
|
2.
|
ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH
FLOW STATEMENT
|
|
|
|
|
|
|
|
|
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
|
£
|
£
|
£
|
|
Returns on investments and servicing of
finance
|
|
|
|
|
|
Proceeds on sale of fixed
assets
|
|
-
|
-
|
4,926
|
|
Interest received and similar
income
|
|
77,323
|
-
|
24,204
|
|
Interest paid and similar
charges
|
|
(24,142)
|
(65,863)
|
(129,464)
|
|
Dividends paid
|
|
(70,000)
|
-
|
(282,125)
|
|
|
|
|
|
|
|
Net cash outflow for returns on investments
and
|
|
|
|
|
|
servicing of finance
|
|
(16,819)
|
(65,863)
|
(382,459)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
Purchase of intangible fixed
assets
|
|
(7,922)
|
(10,269)
|
(17,557)
|
|
Purchase of tangible fixed
assets
|
|
(36,162)
|
(51,625)
|
(106,765)
|
|
|
|
|
|
|
|
Net
cast outflow for capital expenditure
|
|
(44,084)
|
(61,894)
|
(124,322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
Proceeds from issue of
shares
|
|
2,030,788
|
-
|
-
|
|
Acquisition of minority
interest in subsidiary
|
|
(1,306,500)
|
|
|
|
(Loan repaid)/new loan
received
|
|
(239,411)
|
(38,160)
|
(728,658)
|
|
|
|
|
|
|
|
Net
cash inflow from financing
|
|
484,877
|
(38,160)
|
(728,658)
|
|
|
|
|
|
|
|
|
|
|
|
|
3.
|
ANALYSIS OF CHANGES IN NET DEBT
|
|
|
|
|
|
|
|
At 01/01/24
|
Cash flow
|
At 30/06/24
|
|
|
|
£
|
£
|
£
|
|
|
|
|
|
|
|
Net cash:
|
|
|
|
|
|
Cash at bank and in hand
|
|
402,568
|
839,817
|
1,242,385
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
Loan
|
|
(530,628)
|
239,411
|
(291,217)
|
|
|
|
|
|
|
|
Cash at bank and in hand
|
|
(128,060)
|
1,079,228
|
951,168
|
UNIGEL GROUP PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL
STATEMENTS
PERIOD ENDED 30 JUNE 2024
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
2024
|
30 June
2023
|
31
December 2023
|
|
|
|
|
£
|
£
|
£
|
|
|
|
|
|
|
|
|
Profit after tax
|
|
|
928,312
|
628,700
|
323,547
|
|
|
|
|
|
|
|
|
Weighted average ordinary
shares in issue
|
|
|
12,226,471
|
11,285,000
|
11,285,000
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
7.59p
|
5.57p
|
2.87p
|
3. CALLED UP SHARE
CAPITAL
|
Allotted, issued and fully paid:
|
|
|
|
|
|
|
Number
|
Class:
|
Nominal
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
|
value:
|
£
|
£
|
£
|
|
|
|
|
|
|
|
|
14,458,106 (2023: 11,285,000)
|
Ordinary
|
£0.005
|
72,291
|
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.