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Universe Group expects “modest level” of full-year profits

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Universe Group shares (LON: UNG) were 11.27% lower on Monday as the group shared a trading update for the year to 31 December 2020.

Revenues for the second half of the year are expected to be in line with revenues recorded for the first half of the year – depending on the roll-out of a material project where work is ongoing. 

“Revenues from this project are now expected to be recognised in the first half of 2021 but the investment made in the project must be recognised in the current financial year,” said the group in a statement.

Amid the Brexit uncertainty and Covid-related costs, Universe Group remains confident and expects to report a modest level of adjusted EBITDA profitability for the full year. 

Jeremy Lewis, the chief executive of the company commented: “The Company’s employees and management have worked hard this year to keep customer service levels up in difficult circumstances. We are working on a small number of high-value projects while continuing to focus on a significant level of recurring and repeating business. We have a resilient financial position and are cautiously optimistic about our prospects for next year. We look forward to providing further updates as the new year progresses.”

Universe Group shares (LON: UNG) are currently trading -13.88% at 3.66 (1145GMT).