The 'Interim Results' announcement released on 31 August 2023 at 7:00 AM under RNS No 8648K has been reformatted.
All material details remain unchanged.
The full text is shown below.
Unigel Group plc
(the "Group" or the "Company")
Interim Results
Unigel Group plc (AQSE: UNX), the manufacturer and supplier of materials used in the manufacture of telecommunication fibre optic cables announces its unaudited half-year results for the period ended 30 June 2023. Comparative data is for the post-acquisition six month period ended 31 December 2022.
Operational highlights
The Group continues to make progress in operational improvements:
· New customer acquisitions in both our steel tape and thixotropic gel businesses
· De-risking and diversifying our raw material sourcing base
· Cost improvement in our logistics and material handling activities
· Operating cost improvement through optimisation of production staff and administrative resources
Financial highlights
Key figures for the six months to 30 June 2023 with comparatives for the six months to 31 December 2022 were as follows:
· Revenue of £17.95m (£18.83m)
· Gross profit of £2.39m with a gross profit margin of 13.3% (£2.23m and 11.8%)
· Administrative expenses of £1.47m (£1.73m)
· Profit after tax of £0.63m (£0.32m)
· Final dividend of 2.5p per share distributed post period end in July 2023
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
Enquiries:
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Unigel Group plc |
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Eric Chhoa |
+81 7022 613 812 |
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Gary Revel-Chion |
+44 (0) 1273 612 122 |
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Cairn Financial Advisers LLP (AQSE Corporate Adviser) |
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Jo Turner |
+44 (0) 20 7213 0880 |
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Ludovico Lazzaretti |
Notes to Editors
Unigel Group plc is the holding company whose operating subsidiaries, Unigel (UK) Limited ("Unigel") and Unitape Limited ("Unitape") manufacture and distribute materials used in the manufacture of telecommunication fibre optic cables.
Unigel, in which the Group has a 60.0% holding, formulates, manufactures, and markets thixotropic gels primarily to the fibre optic cable industry. In addition, it also makes specialty gel products for the construction, green energy, and high voltage transmission apparatus markets.
Unitape, a wholly owned subsidiary of the Group, is one of the largest domestic manufacturers and suppliers of laminated steel tapes to the fibre optic cable industry in North America.
Chief Executive Officer's review
Despite a less favourable operating environment across most key markets, Unigel Group plc registered good overall results in all key performance indicators except revenue growth. The global fibre optic cable industry, which is a key market for the Group, registered negative industry growth of 3.4% in the first half of 2023. Globally, there has been a slowdown in telecommunications network deployment including 5G networks as telcos postponed their network investment due to weaker business sentiment caused by macroeconomic concerns such as inflation, high interest rates and anaemic economic recovery in some major markets.
However, there is a general industry consensus that network investment is expected to improve in 2024. The Group had implemented new initiatives to improve overall engagement with our customer base post Covid, and we are starting to see some tangible results from our business development initiatives of the past 2 years. We continue to improve our cost structure and execute more efficiently across all business domains.
The Group is cautiously optimistic about our business performance in the second half of 2023.
Business review
Although turnover for the six months to 30 June 2023 reduced by just under 5% compared to the previous six months, gross margin improved as raw material prices and logistics costs became more stable. Administrative overheads fell by 15% compared to the previous six months with the major savings coming from more efficient staffing levels in production and an improved foreign exchange environment. Profit after tax rose by 94% to £0.63m in the six months to 30 June 2023. The Group balance sheet showed net assets of £2.88m as at 30 June 2023 compared to £2.32m on 31 December 2022.
Outlook
The global economy continues to be challenged by macroeconomic uncertainties including inflation, high interest rates, weaker investment sentiments and a docile economic recovery in China. Barring unforeseen circumstances, the Group continues to be cautiously optimistic about the outlook of our business performance for the second half of 2023.
Chairman
Sven Janne Sjoden
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UNIGEL GROUP PLC |
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UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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PERIOD ENDED 30 JUNE 2023 |
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6 months to |
6 months to |
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30 June 2023 |
31 December 2022 |
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£ |
£ |
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TURNOVER |
17,950,547 |
18,828,803 |
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Cost of sales |
(15,561,317) |
(16,602,974) |
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Gross profit |
2,389,230 |
2,225,829 |
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Administrative expenses |
(1,471,418) |
(1,731,478) |
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OPERATING PROFIT |
917,812 |
494,351 |
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Other income |
|||||||||||
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Interest receivable and similar income |
9,710 |
11,412 |
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Interest payable and similar charges |
(75,573) |
(63,612) |
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PROFIT ON ORDINARY ACTIVITIES |
|||||||||||
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BEFORE TAXATION |
851,949 |
442,151 |
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Tax on profit on ordinary activities |
(223,249) |
(118,604) |
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PROFIT FOR THE FINANCIAL PERIOD |
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FOR THE GROUP |
628,700 |
323,547 |
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Other comprehensive income for the period |
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(Loss)/gain on foreign exchange |
(71,051) |
14,465 |
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Negative goodwill on acquisition |
- |
666,205 |
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
557,649 |
1,004,217 |
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Minority interest |
(128,306) |
22,712 |
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TOTAL COMPREHENSIVE INCOME FOR THE GROUP |
429,343 |
1,026,929 |
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CONTINUING OPERATIONS |
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All of the group's activities were acquired during the previous period |
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UNIGEL GROUP PLC |
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UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
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30 JUNE 2023 |
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30 June |
31 December |
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2023 |
2022 |
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Notes |
£ |
£ |
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FIXED ASSETS |
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Intangible assets |
508,113 |
537,346 |
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Tangible assets |
1,313,853 |
1,379,072 |
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1,821,966 |
1,916,418 |
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CURRENT ASSETS |
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Stocks |
6,635,740 |
8,757,545 |
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Debtors |
4,665,990 |
5,672,432 |
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Cash at bank and in hand |
758,946 |
730,860 |
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12,060,676 |
15,160,837 |
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CREDITORS |
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Amounts falling due within one year |
10,676,068 |
14,440,267 |
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NET CURRENT ASSETS |
1,384,608 |
720,570 |
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TOTAL ASSETS LESS CURRENT |
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LIABILITIES |
3,206,574 |
2,636,988 |
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CREDITORS |
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Amounts falling due after more than one year |
35,987 |
12,539 |
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PROVISION FOR LIABILITIES |
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Deferred tax |
289,008 |
300,519 |
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NET ASSETS |
2,881,579 |
2,323,930 |
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CAPITAL AND RESERVES |
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Called up share capital |
3 |
56,425 |
56,425 |
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Share premium |
469,011 |
469,011 |
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Profit & loss account |
1,236,272 |
806,929 |
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EQUITY ATTRIBUTABLE TO THE |
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OWNERS OF THE PARENT COMPANY |
1,761,708 |
1,332,365 |
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Minority interest |
1,119,871 |
991,565 |
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SHAREHOLDERS' FUNDS |
2,881,579 |
2,323,930 |
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UNIGEL GROUP PLC |
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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
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30 JUNE 2023 |
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Group |
Share |
Share |
Retained |
Minority |
Total |
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capital |
premium |
earnings |
interest |
equity |
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£ |
£ |
£ |
£ |
£ |
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Upon incorporation |
100 |
100 |
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Upon issue of shares net of costs |
56,325 |
469,011 |
525,336 |
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Upon acquisitions |
666,205 |
1,014,277 |
1,680,482 |
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Comprehensive income for the |
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period |
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Profit for the period |
323,547 |
323,547 |
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Minority interest in profit/(loss) for |
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the period |
22,712 |
(22,712) |
- |
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Other comprehensive income for |
|||||
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the period |
14,465 |
14,465 |
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Dividends paid |
(220,000) |
(220,000) |
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Total comprehensive income for |
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the period at 31 December 2022 |
56,425 |
469,011 |
806,929 |
991,565 |
2,323,930 |
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Comprehensive income for the |
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period |
|||||
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Profit for the period |
628,700 |
628,700 |
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Minority interest in profit/(loss) for |
|||||
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the period |
(128,306) |
128,306 |
- |
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Other comprehensive income for |
|||||
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the period |
(71,051) |
(71,051) |
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Dividends paid |
- |
- |
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Total comprehensive income for |
|||||
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the period at 30 June 2023 |
56,425 |
469,011 |
1,236,272 |
1,119,871 |
2,881,579 |
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UNIGEL GROUP PLC |
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UNAUDITED CONSOLIDATED CASH FLOW STATEMENT |
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PERIOD ENDED 30 JUNE 2023 |
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30 June |
31 December |
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2023 |
2022 |
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£ |
£ |
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Net cash inflow/(outflow) from |
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operating activities |
243,614 |
(569,222) |
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Return on investments and |
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servicing of finance |
(65,863) |
(62,872) |
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Taxation |
(49,611) |
(114,927) |
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Capital expenditure |
(61,894) |
(129,043) |
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|
66,246 |
(876,064) |
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Financing |
(38,160) |
953,839 |
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Increase in cash in the period |
28,086 |
77,775 |
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Reconciliation of net cash flow |
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to movement in net debt |
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Increase in cash in the period |
28,086 |
77,775 |
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Cash inflow/(outflow) from movement in debt |
38,160 |
(428,403) |
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Change in net debt resulting from |
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cash flows |
66,246 |
(350,628) |
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Opening net cash balances |
(528,426) |
(177,798) |
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Closing net cash balances |
(462,180) |
(528,426) |
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UNIGEL GROUP PLC |
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NOTES TO THE UNAUDITED CONSOLIDATED CASH FLOW STATEMENT |
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PERIOD ENDED 30 JUNE 2023 |
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1. |
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FRON OPERATING ACTIVITIES |
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30 June |
31 December |
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2023 |
2022 |
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£ |
£ |
|||
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Operating profit |
917,812 |
494,351 |
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Depreciation and amortisation charges |
103,969 |
114,412 |
||
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(Profit)/loss on fixed asset disposals |
- |
24,442 |
||
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Decrease/(increase) in stocks |
2,121,805 |
(3,382,187) |
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Decrease in debtors |
1,006,442 |
1,088,864 |
||
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(Decrease)/increase in creditors |
(3,906,414) |
1,090,896 |
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Net cash inflow/(outflow) from operating activities |
243,614 |
(569,222) |
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2. |
ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT |
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|
30 June |
31 December |
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2023 |
2022 |
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|
£ |
£ |
|||
|
Returns on investments and servicing of finance |
||||
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Proceeds on sale of fixed assets |
- |
29,328 |
||
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Interest paid less interest received and similar income |
(65,863) |
(52,200) |
||
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Dividends paid |
- |
(40,000) |
||
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Net cash outflow for returns on investments and |
||||
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servicing of finance |
(65,863) |
(62,872) |
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Capital expenditure |
||||
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Purchase of intangible fixed assets |
(10,269) |
(7,012) |
||
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Purchase of tangible fixed assets |
(51,625) |
(122,031) |
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Net cash outflow for capital expenditure |
(61,894) |
(129,043) |
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Financing |
||||
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Proceeds from issue of shares |
- |
525,436 |
||
|
(Loan repaid)/new loan received |
(38,160) |
428,403 |
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|
Net cash inflow from financing |
(38,160) |
953,839 |
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3. |
ANALYSIS OF CHANGES IN NET DEBT |
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At 01/01/23 |
Cash flow |
At 30/06/23 |
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|
£ |
£ |
£ |
||
|
Net cash: Cash at bank and in hand |
730,860 |
28,086 |
758,946 |
|
|
Debt: Loan |
(1,259,286) |
38,160 |
(1,221,126) |
|
|
Cash at bank and in hand |
(528,426) |
66,246 |
(462,180) |
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UNIGEL GROUP PLC
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PERIOD ENDED 30 JUNE 2023
1. ACCOUNTING POLICIES
Company information
The company is a public limited company incorporated in England and Wales (registered number 13934232) and its registered office is Unigel House, 7 Park View, Alder Close, Eastbourne, BN23 6QE.
The principal activity of the group is the manufacture and sale of cable filling and flooding compounds, associated pumping and delivery equipment, and tapes.
Accounting convention and basis of preparation
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The preparation of the consolidated financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group's accounting policies. Information is given in the accounting policies noted below.
2. EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit after tax for the period by the weighted average number of ordinary shares in issue during the period.
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30 June |
31 December |
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2023 |
2022 |
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£ |
£ |
|||||
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Profit after tax |
628,700 |
323,547 |
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Weighted average ordinary shares in issue |
11,285,000 |
11,285,000 |
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Earnings per share |
5.57p |
2.87p |
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3. CALLED UP SHARE CAPITAL
|
Allotted, issued and fully paid: |
30 June |
31 December |
|||
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Number |
Class: |
Nominal |
2023 |
2022 |
|
|
value: |
£ |
£ |
|||
|
11,285,000 |
Ordinary |
£0.005 |
56,425 |
56,425 |
|
4. FORWARD-LOOKING STATEMENTS
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.