Unigel Group plc
(the "Group" or the "Company")
Final Results
Unigel Group plc (AQSE: UNX), the manufacturer and distributor of materials used in the manufacture of telecommunication fibre optic cables announces its audited final results for the year ended 31 December 2024.
The turnover for the year for the Group was £29,172,801 ( 2023: £28,465,064) and the profit after tax was £1,663,181 (2023: £608,806). The gross profit percentage was 20.2% (2023: 14.4%).
The final report and accounts will be available on the Company's website.
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:
| Unigel Group plc |
|
| Eric Chhoa |
+81 80 6929 3688 |
| Gary Revel-Chion
|
+44 (0) 1273 612 122 |
| Cairn Financial Advisers LLP (AQSE Corporate Adviser) |
|
| Jo Turner |
+44 (0) 20 7213 0880 |
| Ludovico Lazzaretti |
|
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
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 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 is one of the largest domestic manufacturers and suppliers of laminated steel tapes to the fibre optic cable industry in North America.
CHAIRMAN'S STATEMENT
Continued telecom infrastructure investments in 5G and broadband cable networks, growth in internet traffic, data center expansion, cloud computing and the proliferation of AI are key trends driving the investment in digital communications infrastructure in the near and medium term despite global economic and political uncertainties.
The unilateral imposition of tariffs by the United States had negatively impacted the business of Unigel Group, especially in North America where raw materials imported into the US are subject to steep import duties. Unless there is an eventual roll back or reduction of import tariffs imposed by the US, our profit margins will be severely affected in the event if we are not able to pass the tariffs to our customers.
Group revenue in 2024 was £ 29.2 million compared to £28.5 million in 2023. Our aggregate profit after tax was £1.63 million in 2024, up £1.19 million from £0.44 million in 2023, or an increase of 370.5% compared to the preceding period.
Overall business performance improved in 2024 for both our thixotropic gel and steel tape businesses:
· Thixotropic Gel Our gel business volume decreased approximately 10.3% compared to year 2023, with a corresponding decrease in profit after tax of 3.4% over the same period. This represented a much lower volume decline compared to 2023.
· Steel Tapes Our steel tapes business registered revenue growth of 12.1%, with a corresponding increase in profit after tax of 212.8% over the same period.
The Group's after-tax profit improvement was contributed by stellar performance of our steel tapes business. Operational productivity gains, improved raw material and logistics cost, and higher shipment volume to key customers contributed positively to the overall profitability of the Group.
Our overall Group interest expenses was £63,153 in 2024, a significant decrease of 51.2% compared to £129,464 in 2023. The Group was able to reduce its interest expenses by improving our working capital and inventory management, better vendor financing terms and utilizing our internal financing capability.
During the operational year, the Company successfully acquired and integrated the 40.0% equity stake in Unigel (UK) Limited ("UUK") that it did not own from Unigel Compounds Sdn Bhd. The wholly owned UUK has enabled the Group to increase operational efficiency, improved market presence in APAC and contributed to cost structure improvement in the years to come.
The increasing geopolitical friction between the US and China has been exacerbated by Trump 2.0 in 2025. Increased trade barriers by way of highly escalated tariffs imposed by the United States on imports from China and other countries are having a negative impact on the Group's supply chain sourcing framework. Over the past year, our management team had made substantial strides in de-risking and diversifying our raw material supply chain away from China where possible, and we are working closely and involving our customer base in this crucial initiative. In the first quarter of 2025, we made significant capital commitments to increase localisation of production and onshoring into the US which will help shield our business from the negative effect of US import tariffs in the years to come.
The Unigel Group believes that there are substantial opportunities for us to grow organically and through acquisitions in the coming years. With the prolific growth of EVs and AI, and demand for green and renewable version of our product portfolios to support energy and data transmission, we are optimistic about the future of our businesses.
On behalf of my colleagues at the Board, I would like to express our gratitude to our shareholders for their continued support.
S J Sjoden - Director
UNIGEL GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2024
| |
|
Year to 31 December 2024 |
Year to 31 December 2023 |
| |
|
£ |
£ |
| |
|
|
|
| TURNOVER |
|
29,172,801 |
28,465,064 |
| |
|
|
|
| Cost of sale |
|
(23,273,536) |
(24,378,323) |
| |
|
|
|
| GROSS PROFIT |
|
5,899,265 |
4,086,741 |
| |
|
|
|
| Administrative expenses |
|
(3,816,214) |
(3,165,984) |
| |
|
|
|
| OPERATING PROFIT |
|
2,083,051 |
920,757 |
| |
|
|
|
| Interest receivable and similar income |
|
109,319 |
24,204 |
| Interest payable and similar charges |
|
(63,153) |
(129,464) |
| |
|
|
|
| PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION |
|
2,129,217 |
815,497 |
| |
|
|
|
| Tax on profit on ordinary activities |
|
(466,036) |
(206,691) |
| |
|
|
|
| PROFIT FOR THE FINANCIAL PERIOD FOR THE GROUP |
|
1,663,181 |
608,806 |
|
|
|
|
|
| |
|
|
|
| Other comprehensive income for the period |
|
|
|
| (Loss)/ Gain on foreign exchange |
|
22,230 |
(80,476) |
|
|
|
|
|
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
1,685,411 |
528,330 |
|
|
|
|
|
| Minority interest |
|
(58,403) |
(89,094) |
| |
|
|
|
| TOTAL COMPREHENSIVE INCOME FOR THE GROUP |
|
1,627,008 |
439,236 |
UNIGEL GROUP PLC
CONSOLIDATED BALANCE SHEET
31 DECEMBER 2024
| |
2024 |
2023 |
| |
£ |
£ |
| FIXED ASSETS |
|
|
| Intangible assets |
583,032 |
480,612 |
| Tangible assets |
1,180,255 |
1,256,611 |
| |
|
|
| |
1,763,287 |
1,737,223 |
| |
|
|
| CURRENT ASSETS |
|
|
| Stocks |
6,354,253 |
4,979,027 |
| Debtors |
4,211,623 |
2,711,296 |
| Cash at bank and in hand |
324,168 |
402,568 |
| |
|
|
| |
10,890,044 |
8,092,891 |
| CREDITORS |
|
|
| Amounts falling due within one year |
7,539,707 |
6,981,569 |
| |
|
|
| |
|
|
| NET CURRENT ASSETS |
3,350,337 |
1,111,322 |
| |
|
|
| TOTAL ASSETS LESS CURRENT LIABILITIES |
5,113,624 |
2,848,545 |
|
|
|
|
| CREDITORS |
|
|
| Amounts falling due after more than one year |
15,543 |
23,832 |
|
|
|
|
| |
|
|
| |
|
|
| PROVISION FOR LIABILITIES |
|
|
| Deferred tax |
167,681 |
254,578 |
| |
|
|
| |
|
|
| NET ASSETS |
4,930,400 |
2,570,135 |
| |
|
|
| |
|
|
| CAPITAL AND RESERVES |
|
|
| Called up share capital |
72,291 |
56,425 |
| Share premium |
2,483,933 |
469,011 |
| Profit and loss account |
2,389,093 |
992,961 |
| Translation reserve |
(14,917) |
(28,921) |
| |
|
|
| EQUITY ATTRIBUTABLE TO THE |
|
|
| OWNERS OF THE PARENT COMPANY |
4,930,400 |
1,489,476 |
| |
|
|
| Minority interest |
- |
1,080,659 |
| |
|
|
| SHAREHOLDERS' FUNDS |
4,930,400 |
2,570,135 |
UNIGEL GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
31 DECEMBER 2024
| Group |
Share capital |
Share premium |
Retained earnings |
Translation reserve |
Minority interest |
Total equity |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
| At 1 January 2023 |
56,425 |
469,011 |
780,745 |
26,184 |
991,565 |
2.323,930 |
| Comprehensive income for the year |
|
|
|
|
|
|
| Profit for the year |
- |
- |
608,806 |
- |
- |
608,806 |
| Minority interest in profit/(loss) for the year |
- |
- |
(89,094) |
- |
89,094 |
- |
| Other comprehensive income/(loss) for the year |
- |
- |
(25,371) |
(55,105) |
- |
(80,476) |
| Dividends paid |
- |
- |
(282,125) |
- |
- |
(282,125) |
| |
|
|
|
|
|
|
| Total comprehensive income for |
|
|
|
|
|
|
| the year at 31 December 2023 |
56,425 |
469,011 |
992,961 |
(28,921) |
1,080,659 |
2,570,135 |
|
|
|
|
|
|
|
|
| Upon issue of shares |
15,866 |
2,014,922 |
- |
- |
- |
2,030,788 |
| Upon acquisitions |
- |
- |
- |
- |
(1,139,062) |
(1,139,062) |
| Comprehensive income for the period |
|
|
|
|
|
|
| Profit for the period |
- |
- |
1,663,181 |
- |
- |
1,663,181 |
| Minority interest in profit/(loss) for the period |
- |
- |
(58,403) |
- |
58,403 |
- |
| Other comprehensive income/(loss) for the period |
- |
- |
8,226 |
14,004 |
- |
22,230 |
| Dividends paid |
- |
- |
(216,872) |
- |
- |
(216,872) |
| |
|
|
|
|
|
|
| Total comprehensive income for |
|
|
|
|
|
|
| the year at 31 December 2024 |
72,291 |
2,483,933 |
2,389,093 |
(14,917) |
- |
4,930,400 |
| |
|
|
|
|
|
|
UNIGEL GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
PERIOD ENDED 31 DECEMBER 2024
| |
|
2024 |
2023 |
| |
|
£ |
£ |
| Net cash inflow/(outflow) from operating activities |
|
1,382,971 |
1,181,246 |
| Returns on investments and servicing of finance |
|
(1,476,505) |
(382,459) |
| Taxation |
|
(380,099) |
(274,099) |
| Capital expenditure |
|
(68,550) |
(124,322) |
| |
|
(542,183) |
400,366 |
| Financing |
|
463,783 |
(728,658) |
| (Decrease)/increase in cash in the period |
|
(78,400) |
(328,292) |
| |
|
|
|
| |
|
|
|
| Reconciliation of net cash flow to movement in net debt |
|
|
|
| (Decrease)/increase in cash in the period |
|
(78,400) |
(328,292) |
| Cash inflow/(outflow) from movement in debt |
|
(463,783) |
728,658 |
| Change in net debt resulting from cash flows |
|
(542,183) |
400,366 |
| Net cash at 31 December 2023 |
|
(128,060) |
(528,426) |
| Net cash at 31 December 2024 |
|
(670,243) |
(128,060) |
UNIGEL GROUP PLC
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
PERIOD ENDED 31 DECEMBER 2024
1. RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
| |
2024 |
2023 |
| |
£ |
£ |
| Operating profit |
2,083,051 |
920,757 |
| Depreciation and amortisation charges |
215,404 |
202,278 |
| (Profit)/loss on fixed asset disposals |
6,750 |
33,318 |
| Decrease/(Increase) in stocks |
(1,375,226) |
3,778,518 |
| Decrease in debtors |
(1,448,391) |
2,961,136 |
| (Decrease)/Increase in creditors |
1,901,383 |
(6,714,761) |
| |
|
|
| Net cash inflow/(outflow) from operating activities |
1,382,971 |
1,181,246 |
2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT
| |
2024 |
2023 |
| |
£ |
£ |
| Returns on investments and servicing of finance |
|
|
| Proceeds on sale of fixed assets |
701 |
4,926 |
| Purchase of minority interest |
(1,306,500) |
- |
| Interest receivable and similar income |
109,319 |
24,204 |
| Interest payable and similar charges |
(63,153) |
(129,464) |
| Dividends paid |
(216,872) |
(282,125) |
| |
|
|
| Net cash outflow for returns on investments and servicing of finance |
(1,476,505) |
(382,459) |
| Capital expenditure |
|
|
|
|
| Purchase of intangible fixed assets |
(26,453) |
(17,557) |
||
| Purchase of tangible fixed assets |
(42,097) |
(106,765) |
||
| |
|
|
||
| Net cash outflow for capital expenditure |
(68,550) |
(124,322) |
||
| |
|
|
||
| Financing |
|
|
||
| New loan received/(loan repaid) |
463,783 |
(728,658) |
||
| |
|
|
||
| Net cash inflow from financing |
463,783 |
(728,658) |
||
UNIGEL GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
PERIOD ENDED 31 DECEMBER 2024
1. GENERAL 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 and associated pumping and delivery equipment.
The information above has been extracted from the Company's final report and accounts and therefore references to page numbers and notes may not be complete. Shareholders should read the full version of the final report for the period ended 31 December 2024 which is available on the Company's website, http://www.unigel.com .
2. ACCOUNTING POLICIES
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.
Going concern
The group meets its working capital requirements through the receipt of revenue from global sales of cable filling and flooding compounds. Ultimately the receipt of revenue depends upon the availability of liquidity for the group's customers and the level of activity in the telecommunications market.
The directors prepare annual budgets and forecasts in order to ensure that they have sufficient liquidity in place for the business and have considered the effect on the group's business from different scenarios in various countries with which it trades. Based on this assessment, and having regard to the post year-end cash reserves and trading levels of the group, related party funding and the borrowing facility available from the group's bankers, the directors believe they have a reasonable expectation that the group will have adequate resources to continue to discharge its debts and liabilities as they fall due for the foreseeable future. The directors therefore consider it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.
Basis of consolidation
The consolidated financial statements comprise the financial statements of the company and its subsidiary undertakings as at the balance sheet date. The financial statements of the subsidiaries are prepared to the same reporting date as the company. The subsidiaries are consolidated from the date of acquisition, being the date on which the group obtained control.
In preparing the consolidated financial statements, intra-group balances, transactions and unrealised gains or losses are eliminated in full.
3. POST BALANCE SHEET EVENT
On 15 April 2025 the company declared an interim dividend on the ordinary share capital of £0.02 per share resulting in a dividend payable of £289,162. The ex-dividend date for the interim dividend was 24 April 2025, the record date was 25 April 2025, the dividend was paid on 6 May 2025.
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