TIDMUNX
RNS Number : 8531B
Unigel Group PLC
06 June 2023
Unigel Group plc
(the "Group" or the "Company")
Final Results, Notice of AGM and Dividend Declaration
Unigel Group plc (AQSE: UNX), the manufacturer and distributor
of materials used in the manufacture of telecommunication fibre
optic cables announces its audited final results for the
post-acquisition period from 1 July 2022 to 31 December 2022.
The post-acquisition turnover for the six month period from 1
July 2022 to 31 December 2022 was GBP18.8m with a gross profit
margin of 11.8%, producing a profit after tax of GBP323,547.
For the full 12 month period from 1 January 2022 to 31 December
2022, the Group achieved turnover of GBP36.8 million.
The final report and accounts will be available on the Company's
website shortly.
Notice of AGM
The Company announces that the Annual General Meeting ("AGM") of
the Company will be held on 29 June 2023 at 10:00 a.m. at the
offices of Shakespeare Martineau LLP at 6th Floor, 60 Gracechurch
Street, London, EC3V 0HR, United Kingdom.
A notice of AGM, together with the form of proxy, has been sent
to the shareholders of the Company ("Shareholders") today. The
notice of AGM will also be shortly available for inspection on the
Company website, http://www.unigel.com .
Full details of the operation and arrangements for the AGM are
set out in the notice of AGM.
Dividend declaration
The Company's has declared a final dividend of 2.5p per ordinary
share, subject to shareholder approval at the Company's forthcoming
AGM.
The ex-dividend date for the final dividend is 22 June 2023, the
record date is 23 June 2023 and the expected payment date is on or
around 31 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
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward-looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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.
CHAIRMAN'S STATEMENT
As I sat down this afternoon to write to you, I reflected upon
the past three tumultuous years - how the pandemic had brought both
challenges as well as opportunities to the business areas Unigel
Group operates in. As a team, we emerged stronger and more
resilient over the course of the pandemic. Group revenue in 2022
was GBP36.8 million compared to GBP16.1 million in 2019,
representing an annual growth rate of 23.0 percent over the 3-year
period.
Compared to financial year 2021, Group revenue grew 69.9 percent
in 2022. Our thixotropic gel business and steel tape business
chalked impressive growth of 22.8 percent and 133.0 percent
respectively over the same period.
Our Group's Board members and management team have over 200
years of combined fiber optic cable and materials related business
experience. Unigel Group's ability to remain agile, nimble, and
flexible has assisted us to overcome the challenges in 2022: global
logistic cost spikes, inflationary pressure, interest rate hikes,
and a particularly strong Dollar. We overcame most of these
challenges which helped us with an easier transition to a more
normal business environment during the year in review. Even though
the outbreak of the Ukraine conflict in early 2022 eliminated an
important market in Russia for us-but over the course of the
year-that shortfall was compensated with incremental business from
other market areas.
Unigel Group's unique business model of shipping products from
three manufacturing facilities in Europe, Asia and the US to our
global customer base enabled us to continue with our delivery
precision on an uninterrupted basis over the course of the
difficult period of the pandemic. Our efforts brought unmatched
supply chain security to our customers-and this has enhanced the
trust and confidence that our customer base has placed on Unigel as
their preferred supply partner. Thixotropic gel is a key component
in the production of fiber optic cables, and Unigel supplies to all
the leading fiber optic cable manufacturers globally. In 2022, our
thixotropic gel business grew by 22.8 percent from the previous
year, and this growth was contributed by both increased market
share and the acquisition of new customers.
Our steel tape business in the USA has grown by leaps and bounds
over the past five years. In 2022, we recorded a spectacular
revenue growth of 133.0 percent over the preceding year, primarily
from market share gain as well as demand growth. Since 2017, our
steel tape business has grown 33.8 percent annually over the past 5
years. Building trust and growing our steel tape business in the
USA requires considerable patience, hard work and demonstrated
ability to meet the stringent demands of our major customers. We
are happy to report that existing customers have given us more
business, and we have been able to acquire new customers in the
year under review.
In 2022 the global optical fiber cable industry-which is the key
market that Unigel Group supplies to, grew by 12.6 percent across
all markets, with most industry growth led by the markets in the
US, South America, and Middle East. The continued deployment of
mobile 5G and FTTH globally was a key driver in the demand for
fiber optic cables. In addition, the acceleration of digitization
across all facets of society continue to spur the demand for fiber
optic cables and system.
At Unigel Group, we see substantial opportunities for us to grow
organically and potentially through acquisitions and industry
consolidation in the coming years. Our admission to AQUIS Stock
Exchange is an integral step forward where we hope to continue to
raise the profile of our businesses, access the capital markets,
and create an acquisition currency to fund future growth in the
years to come.
In 2023, our businesses continued to face headwinds and our
outlook remains cautiously optimistic-inflation, increased interest
rates and a potential recession in some of our key markets will
keep us on our toes. I believe our highly competent and committed
team are paying particular attention to improve cost and
productivity, to streamline operations and bring more strategic
planning to improve our future business competitiveness.
Throughout this unprecedented period, I saw the Unigel tradition
and values guiding our actions towards our customers, business
partners, employees and shareholders. We have strived to be a
dependable and trusted business partner and a responsible corporate
citizen. Despite all the gloomy economic conditions, 2022 was
indeed a good year for Unigel Group. On behalf of my colleagues at
the Board, I would like to express our gratitude to our
shareholders for the continued support.
UNIGEL GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
PERIODED 31 DECEMBER 2022
2022
GBP
TURNOVER 18,828,803
Cost of sale (16,602,974)
-------------------------------------------------------------------
GROSS PROFIT 2,225,829
Administrative expenses (1,731,478)
-------------------------------------------------------------------
OPERATING PROFIT 494,351
Interest receivable and similar income 11,412
Interest payable and similar charges (63,612)
-------------------------------------------------------------------
PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION 442,151
Tax on profit on ordinary activities (118,604)
-------------------------------------------------------------------
PROFIT FOR THE FINANCIAL PERIOD
FOR THE GROUP 323,547
Other comprehensive income for the
period
Gain on foreign exchange 14,465
Negative goodwill on acquisition 666,205
-------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD 1,004,217
Minority interest 22,712
-------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
GROUP 1,026,929
===================================================================
UNIGEL GROUP PLC
CONSOLIDATED BALANCE SHEET
31 DECEMBER 2022
2022
GBP
FIXED ASSETS
Intangible assets 537,346
Tangible assets 1,379,072
-----------
1,916,418
CURRENT ASSETS
Stocks 8,757,545
Debtors 5,672,432
Cash at bank and in hand 730,860
-----------
15,160,837
CREDITORS
Amounts falling due within one year 14,440,267
-----------
NET CURRENT ASSETS 720,570
-----------
TOTAL ASSETS LESS CURRENT LIABILITIES 2,636,988
CREDITORS
Amounts falling due after more than
one year 12,539
PROVISION FOR LIABILITIES
Deferred tax 300,519
-----------
NET ASSETS 2,323,930
===========
CAPITAL AND RESERVES
Called up share capital 56,425
Share premium 469,011
Profit and loss account 806,929
-----------
EQUITY ATTRIBUTABLE TO THE
OWNERS OF THE PARENT COMPANY 1,332,365
Minority interest 991,565
SHAREHOLDERS' FUNDS 2,323,930
===========
UNIGEL GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
31 DECEMBER 2022
Group Share Share premium Retained Minority Total equity
capital earnings interest
GBP GBP GBP GBP GBP
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
========= ============== ========== ========== =============
UNIGEL GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
PERIODED 31 DECEMBER 2022
2022
GBP
Net cash outflow from operating activities (569,222)
Returns on investments and servicing
of finance (62,872)
Taxation (114,927)
Capital expenditure (129,043)
----------
(876,064)
Financing 953,839
Increase in cash in the period 77,775
==========
Reconciliation of net cash flow to
movement in net debt
Increase in cash in the period 77,775
Cash inflow from increase in debt (428,403)
----------
Change in net debt resulting from cash flows (350,628)
Net cash upon acquisition (177,798)
----------
Net cash at 31 December (528,426)
==========
UNIGEL GROUP PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
PERIODED 31 DECEMBER 2022
1. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
2022
GBP
Operating profit 494,351
Depreciation and amortisation charges 114,412
(Profit)/loss on fixed asset disposals 24,442
(Increase) in stocks (3,382,187)
Decrease in debtors 1,088,864
Increase in creditors 1,090,896
------------
Net cash outflow from operating activities (569,222)
============
2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT
2022
GBP
Returns on investments and servicing of finance 29,328
Proceeds on sale of fixed assets (52,200)
Interest paid less interest received and similar
income (40,000)
---------
Dividends paid
Net cash outflow for returns on investments
and servicing of finance (62,872)
=========
Capital expenditure
Purchase of intangible fixed assets (7,012)
Purchase of tangible fixed assets (122,031)
----------
Net cash outflow for capital expenditure (129,043)
Financing
Proceeds from issue of shares 525,436
(Loan repaid)/new loan received 428,403
----------
Net cash inflow from financing 953,839
==========
3. ANALYSIS OF CHANGES IN NET DEBT
Upon acquisition Cash flow At 31/12/22
GBP GBP GBP
Net cash:
Cash at bank and in hand 653,085 77,775 730,860
Debt:
Loan (830,883) (428,403) (1,259,286)
------------------- ---------- ------------
Cash at bank and in hand (177,798) (350,628) (528,426)
=================== ========== ============
UNIGEL GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PERIODED 31 DECEMBER 2022
1. GENERAL 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 and associated pumping and
delivery equipment.
The information above has been extracted from the Company's
final report and accounts and therefore references to page numbers
and notes may not be complete. Shareholders should read the full
version of the final report for the period ended 31 December 2022
which is available on the Company's website, http://www.unigel.com
.
2. ACCOUNTING POLICIES
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.
Going concern
The group meets its working capital requirements through the
receipt of revenue from global sales of cable filling and flooding
compounds. Ultimately the receipt of revenue depends upon the
availability of liquidity for the group's customers and the level
of activity in the telecommunications market.
The directors prepare annual budgets and forecasts in order to
ensure that they have sufficient liquidity in place for the
business and have considered the effect on the group's business
from different scenarios in various countries with which it trades.
Based on this assessment, and having regard to the post year-end
cash reserves and trading levels of the group, related party
funding and the borrowing facility available from the group's
bankers, the directors believe they have a reasonable expectation
that the group will have adequate resources to continue to
discharge its debts and liabilities as they fall due for the
foreseeable future. The directors therefore consider it appropriate
to continue to adopt the going concern basis of accounting in
preparing the financial statements.
Basis of consolidation
The consolidated financial statements comprise the financial
statements of the company and its subsidiary undertakings as at the
balance sheet date. The financial statements of the subsidiaries
are prepared to the same reporting date as the company. The
subsidiaries are consolidated from the date of acquisition, being
the date on which the group obtained control.
In preparing the consolidated financial statements, intra-group
balances, transactions and unrealised gains or losses are
eliminated in full.
3. DIVIDEND
The Company has declared a final dividend of 2.5p per ordinary
share, subject to shareholder approval at the Company's forthcoming
AGM.
The ex-dividend date for the final dividend is 22 June 2023, the
record date is 23 June 2023 and the expected payment date is on or
around 31 July 2023.
4. AGM
The AGM of the Company will be held on 29 June 2023 at 10:00
a.m. at the offices of Shakespeare Martineau LLP at 6th Floor, 60
Gracechurch Street, London, EC3V 0HR, United Kingdom.
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END
NEXFLFVERTIRIIV
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June 06, 2023 12:00 ET (16:00 GMT)
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