5th Sep 2019 13:20
(Alliance News) - Hong Kong-based UniVision Engineering Ltd on Thursday reported a sharp rise in annual profit and revenue on the back of a contract to deliver new CCTV cameras at Hong Kong train stations.
In the 12 months ended March 31, UniVision Engineering's pretax profit more than doubled to GBP1.7 million from GBP735,000 the year before.
The company - which supplies, designs, installs and maintains closed-circuit television and surveillance systems - saw its revenue almost triple to GBP14.2 million from GBP5.6 million.
UniVision attributed the sharp growth to the full year contribution of the replacement CCTV systems project contract awarded to the company by MTR Corp in 2017.
MTR runs Hong Kong's mass transit railway, and is also a property developer and landlord in Hong Kong.
UniVision was awarded the HKD389.4 million contract, about GBP38.1 million, in early 2017 to replace the CCTV systems for numerous MTRC railway lines.
The company is responsible for replacing the existing analogue CCTV system installed in the stations along the specified lines with a new internet protocol-based, digital CCTV system.
Add-ons totalling HKD17.9 million, take the total value of the MTRC contract to HKD407.3 million with completion by November 2023, the company explained.
As of March 31, UniVision had invoiced about HKD90 million for the contract, leaving a further book of about HKD317.3 million to be billed over the next four and a half years.
UniVision noted the contract allows for monthly billing on work completed and allows for variation of orders, which could see the firm receive additional orders in the next financial period and future.
"To make the MTRC Contract profitable to our shareholders, the company is continuously working with its suppliers and sub-contractors to ensure that we get favourable supply and credit terms. The board also closely monitors UniVision's working capital to be certain that we have adequate financial resources to drive the project to completion," UniVision said.
UniVision upped its final dividend by 28% to 0.55 HKD cents, about 0.057 pence, compared to 0.43 cents, about 0.044p, the year before.
Turning towards the current protests in Hong Kong, Executive Chair Stephen Sin Mo Koo said: "The current protests against anti-extradition bill in Hong Kong may appear to be a cause for concern and affect current work in progress at certain locations in the past couple of months."
The company believes this could be good for business, however, as it will result in extra orders for CCTV systems.
"However, the long term effects of these protests may result in more opportunity for the company as MTRC, Electrical and Mechanical Services Department, and the Hong Kong Police Force are expected to make additional orders, or look to invest additional funds to provide enhanced security and surveillance, such as installation of additional cameras and also facial recognition technology, to help protect its premises, infrastructure and citizens respectively," added Koo.
Shares in UniVision Engineering were 3.0% higher in London on Thursday at 2.42 pence each.
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