News blog

Universe Group

• BY: Andrew Hore |
• POSTED: 03/06/2013 |

Payment and online loyalty systems provider Universe Group is acquiring Indigo Retail Technology for £2.73m in cash and shares.

That includes 24m shares at 4.5p each. Indigo is a profitable business and it generated revenues of £2.1m in the year to August 2012. Indigo will be integrated with HTEC and its sellers can benefit from revenue growth over the three years after acquisition. The maximum additional consideration is £1.15m.

Indigo develops point of sale, back office and head office systems for forecourt retailers and non-fuel convenience store retailers. The systems complement Universe’s software and systems.

House broker has increased its earnings per share forecast from 0.46p to 0.52p in 2013 even before any cost savings kick in next year. Profit will be flat at £1.1m. At 5p a share, up 0.5p, Universe is valued at £9.38m and it is trading on 10 times prospective earnings.

Further add-on acquisitions are being considered.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf