16th Nov 2016 10:22
LONDON (Alliance News) - Vending machine provider Uvenco UK PLC said Wednesday it intends to increase its prices as it reported a revenue drop for the first half of its financial year.
AIM-listed Uvenco, previously known as SnackTime, reported a pretax operating profit of GBP1.1 million for the six months to September 30, swinging from a GBP709,832 loss for the same period in the prior financial year.
However, Uvenco noted the profit increase was driven by a GBP1.6 million exceptional profit via the settlement of its GBP2.5 million outstanding bank facility and GBP100,000 in accrued bank fees for just GBP1.0 million.
The company's revenue for the six-month period fell by 6.7% to GBP7.5 million from GBP8.0 million year-on-year.
Uvenco noted its borrowings now consist of GBP1.3 million with alternative lender Reward Corporate Finance Ltd, which it is looking to re-finance at a lower rate of interest.
The company said it has increased the door prices for its hot beverage vending machines and now plans a 7% to 10% increase for snacks in its Public division, as well as for cup charges and other invoices to customers.
"We remain focused on delivering consistent quality products while managing costs, from "clean, full and working" machines, whenever a purchase is desired. We will continue investing into new state of the art machines in order to start growing the revenue. This has already been reflected in the growth of our free on loan estate as well as the coinage receipts compared to the equivalent prior year period," said Jeremy Hamer, chairman.
Shares in Uvenco UK were untraded Wednesday morning, having last traded at 5.39 pence.
By Adam Clark; [email protected]
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