10th Sep 2015 17:00
LONDON (Alliance News) - UniVision Engineering Ltd Thursday reported a large fall in pretax profit in its last financial year after both its divisions in Taiwan and Hong Kong faced increased competition in securing new contracts and its major project was hit by delays.
The Hong Kong-based industrial CCTV and security system provider reported a fall in pretax profit to GBP130,189 in the financial year ended March 31, from the GBP3.0 million profit booked a year earlier as revenue dropped 25% to GBP6.7 million from GBP8.9 million.
The fall in revenue was mainly caused by the "significant drop" in construction contracts won by its subsidiary in Taiwan, which reported a 53% drop in revenue in the year, it said.
"Facing slow economic growth, local customers cut down their capital expenditure and budgets. There was lower demand for improving or replacing security and surveillance systems," it said in a statement.
The Hong Kong division also reported a 15.5% year-on-year fall in revenue because of the delay of civil works being completed at its "major" Hong Kong-Zhuhai-Macao Bridge project that slowed down the progress of the construction works.
It added that there was increased competition in securing new contracts across both divisions.
"The group will explore M&A opportunities in related businesses, both locally and overseas, for growth and expansion. Furthermore, the Group would like to expand its market geographically. The target markets include United Arab Emirates and South East Asian countries," it said it a statement.
UniVision shares closed up 13.2% to 0.736 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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