Delivering Essential, Innovative Services to the Cornerstones of UK Retailing
ANNUAL REPORT AND ACCOUNTS Year ended 31 December 2020
Stock Code: UNG
Vision
Universe group aims to be a leading real-time, retail management solution provider to the convenience and forecourt markets.
What Makes Us
Different?
Our unique, real-time, retail management solution provides convenience retailers with the kind
of dynamic data feeds normally only available to supermarkets, bringing a new level of efficiency to store operations in critical areas such as replenishment, store layout and stock wastage.
Card payment services that we provide are especially optimised for our 5,500 forecourt customer sites, where card payments, fuel cards and loyalty are combined into a complex set of transactions that needs to be handled quickly, with integrity and in volume.
Innovative Payments Solutions, Retail Management Systems and Services for the UK's Convenience & Forecourt Businesses
About Universe Group
Universe provides a wide-ranging suite of innovative software applications, payment services, complementary technologies and support services to the growing convenience and forecourt market, in the UK and Europe.
Our position as a leader in the convenience and forecourt services sector remains strong, through our unique combination of specialist card payments, customer loyalty software, forecourt site controllers, outdoor payment terminals, retail management solutions and 24/7 support services.
Our unparalleled retail management system gives our customers a real-time,data-driven, solution that means that they have new levels of visibility, control, efficiency and agility in their business.
We serve over 20,000 concurrent users every day, processing over 20bn transactions through our retail systems, which allow over 6.6 Billion litres of fuel (17% of total UK Petrol & Diesel sold in 2020) * to flow through our customers' forecourts every year.
* Source: The Petrol Retailers Association (the PRA)
Universe Group In Numbers
£5.8bn 5,500
Supporting our customers requires a 24/7/365 operation, which we staff from our call centre, directing our own engineers to sites which cannot be fixed remotely.
per annum
Payments processed through our Gempay Switch
Serving over
20,000
forecourt and convenience stores in the UK
(65% of the forecourt market) * *(Source: PRA Report)
daily concurrent users
- UNIVERSE GROUP PLC
BUSINESS OVERVIEW | STRATEGIC REPORT | OUR GOVERNANCE | OUR FINANCIALS |
Highlights
Revenue | Operating (loss)/profit before tax | ||
£19.75m | £(0.41m) | ||
2016 | £19.7m | 2016 | £2.04m |
2017 | £19.6m | 2017 | £0.88m |
2018 | £19.6m | 2018 | £0.91m |
2019 | £22.4m | 2019 | £(1.32m) |
2020 | £19.75m | 2020 | £(0.41m) |
Adjusted EBITDA | Diluted (loss)/earnings per share |
£1.94m (0.24p)
2016 | £3.77m | 2016 | 0.76p |
2017 | £2.37m | 2017 | 0.26p |
2018 | £2.64m | 2018 | 0.33p |
2019 | £3.89m | 2019 | restated (0.40p) |
2020 | £1.94m | 2020 | (0.24p) |
6.6bn
Litres of fuel & additives sold through forecourts using our products and services
20bn
transactions processed per year
Contents
BUSINESS OVERVIEW
01 Highlights
02 Our Products and Services
03 Chairman's Statement
STRATEGIC REPORT
08 Current Trading
09 Operational Review
12 Financial Review
- Key Performance Indicators
- Risk and Uncertainties
OUR GOVERNANCE
- Board of Directors
- Corporate Governance Report
31 Directors' Remuneration Report
33 Directors' Report
36 Independent Auditor's Report
OUR FINANCIALS
- Consolidated Statement of Comprehensive Income
- Consolidated and Company Statement of Changes in Equity
- Consolidated and Company Statement of Financial Position
- Consolidated and Company Statement of Cash Flows
- Notes Forming Part of the Financial Statements
- Five Year Summary
-
Officers and
Professional Advisors
UNIVERSE GROUP PLC 01
Our Products and Services
PAYMENTS
Why?
We believe in making retail easier for our customers.
How?
Our complete suite of payments, retail management and loyalty gives our customers the insights to drive footfall, basket size and growth, while optimising inventory and pricing to improve margin.
PAYMENTS | MOBILE | GEMPAY |
PROCESSING | PAYMENTS |
CONVENIENCE
SOFTWARE
AB-INITIOCALLISTO
FORECOURT | |||
SOFTWARE | FUEL | ||
AND 3RD | |||
PARTY | |||
PRODUCT | OUTDOOR PAYMENT | ANPR | SITE |
INTEGRATION | TERMINALS (OPTS) | CONTROLLER | |
SOFTWARE |
ENGAGEMENT
APPLICATION
ONLINE | IOCASTE | CUSTOMER |
LOYALTY POINTS | LOYALTY | |
ENGINE |
SUPPORT
SERVICE | ON-SITE | HARDWARE | PROFESSIONAL |
DESK | ENGINEERS | MAINTENANCE | SERVICES |
02 UNIVERSE GROUP PLC
BUSINESS OVERVIEW | STRATEGIC REPORT | OUR GOVERNANCE | OUR FINANCIALS |
Chairman's Statement
As 2020 unfolded, the Group took all necessary steps to sustain its customers, employees and operations, in what was a very unpredictable environment. I am pleased to say that we closed the year with a robust business which, by delivering commendable financial results, has proven its value to the marketplace
in the toughest of times.
ANDREW BLAZYE
EXECUTIVE CHAIRMAN
In a very unpredictable trading environment, the Company remained resilient, delivering high quality services to our customers, securing new business and renewing a number of key contracts.
Introduction
I am pleased to announce our results for the year ended 31 December 2020.
As the financial year started, the coronavirus pandemic accelerated into the first of three lockdowns. The executive team worked with the Department of Business, Innovation and Strategy to establish our status as
an Essential Service Provider ("ESP"), due to our material market share of the UK's convenience and fuel forecourt estates. This enabled the Company to continue to deploy its fleet of engineers and keep its call centre running 24/7, even while most employees were working from home.
We also needed some staff working at our Southampton site, managing spares and supplying engineers with the equipment required to keep our customers up and running. It is testimony to the resilience and hard work of the whole business that our core service metrics remained high during the ongoing coronavirus crisis.
Like many companies, our business started the year with several objectives, which had to be revisited and re-planned as the pandemic unfolded. As we closed the year, we managed to deliver revenue for the second half which was in line with that of the first. A key payments contract planned for the second half is now expected to roll out in mid-2021 and the revenues recognised in 2021. The project is now making good progress and is currently in the live customer pilot phase.
We closed some valuable new business in the first half, which rolled out in the second part of year, including the addition of a new payment services client. We also completed the integration of the Company's acquisition of Celtech, advancing the Group's
retail management solutions portfolio considerably and improving the breadth and depth of our proposition.
The Company has maintained the development programme for our core products and invested in our service capabilities, which have been adapted to work throughout the pandemic. The Group is ready for the return of a more normal working environment as and when it comes about.
Group revenues at £19.75 million (2019: £22.44 million) decreased by 12.0% reflecting the COVID down-turn in customers' fuel retailing activities, with recovery expected during 2021. The change in revenue mix in the business, with a reduction in consultancy and software license revenue, resulted in our gross margin decreasing to 43.5% (2019: 51.8%).
Adjusted earnings before interest, taxes, depreciation, amortisation, administration expenses resulting from acquisition costs and share-based payments 'Adjusted EBITDA' (see note 3) reduced by 50.1% to £1.94m (2019: £3.89 million). In line with revenue, Group administrative costs were down by 11.7% to £8.68 million (2019: £9.83 million).
Operating losses totalled £0.41 million (2019: profit of £1.43 million before impairment of development costs of £2.75m) which resulted from the impact of both lower revenues and gross profit margin, partially offset by the reduction in administrative costs.
Cash and cash equivalents less bank borrowings ended the year in a net debt position of £4.69m million (31 December 2019: net cash £0.37 million) due primarily to an increase in year-end inventories of £3.68m to £4.82 million (31 December 2019: £1.13 million) required to service a material contract win, the fulfilment of which has been delayed into 2021.
UNIVERSE GROUP PLC 03
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Disclaimer
Universe Group plc published this content on 18 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2021 14:58:06 UTC.