14th May 2018 11:45
LONDON (Alliance News) - Shares in Uvenco UK PLC on Monday plunged as it said it is in talks over selling off businesses due to a continued decline in revenue.
Shares were down 76% on Monday at 0.60 pence each.
Uvenco, which provides coffee machines, hot & cold drink machines, snack & food machines and water coolers for both schools and businesses, reported a 37% drop in revenue in September for its first half of 2017.
This slide in revenue has kept going, it said Monday, resulting in negative cash flow. It supported this by drawing down a further GBP1.0 million from its facility with Cleitus Investments Ltd, but this has now nearly been exhausted.
Uvenco is now discussing a sale of two trading subsidiaries: its vending operator Uvenco Ltd and franchising operator Snack in the Box Ltd.
The buyer, who was unnamed, would take on a substantial portion of Uvenco's debt and as a result the company would not receive much by way of proceeds from a sale.
If the sales do not proceed, Uvenco said, it will have to take other steps to protect creditors which would make it unlikely shareholders would receive much value.
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Uvenco Uk