Uvenco UK said following the turnaround progress reported in its interim results last November, it now expects to be positive at an EBITDA level for the period, in line with management views.
EBITDA was expected to be in line with management views. Similarly Net income and earnings per share were positive and in line with management expectations," the company said in a statement.
Uvenco UK noted consolidated revenues for the nine months to Dec. 31, 2016, of £10.3m, reflecting the seasonality profile of the period, which excludes January to March, typically higher revenue months.
"Following the turnaround progress reported in our interim results last November, the company expects to be positive at an operating profit before depreciation and amortization, exceptional items and interest (EBITDA) level for the period," it said.
"EBITDA is expected to be in line with management expectations. Similarly Net income and earnings per share are positive and in line with management expectations; Uvenko UK said secured borrowings fell 52% from £2.5m at March 31, 2016, to £1.2m at Dec. 31, 2016, reflecting the continuing deleveraging of the balance sheet and, in particular, the impact of the refinancing in August 2016.
Following the period end, the Company announced a £410,000 loan agreement with Uvenco Group in Russia.
At the end of January, Uvenko UK completed the sale of the premises at Corby.
This realised £328,000 of which £240,000 has been used to reduce the borrowings, resulting in secured borrowings of £1.0m and net debt of £1.2m at 31 January 2017.
Management has also engaged agents to market the Drinkmaster property at Liskeard on a sale and leaseback basis. The property would be marketed at about £625,000 and the proceeds would be used to further reduce group debt.
"Management is exploring refinancing alternatives to reduce the interest cost and will update the market in due course," the company said.
At 9:49am: (LON:UVEN) Uvenco Uk Plc share price was 0p at 4p