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UniVision Engineering Ltd

  • BY: Andrew Hore |
  • POSTED: 04/02/2009 |

UniVision Engineering Ltd is extending the duration of the loan from its main shareholder for a second time.

The Hong Kong-based CCTV systems installer will extend the life of the loan of $6m, plus accrued interest of $1.35m, from September 2009 to March 2010. The interest rate remains at 15% a year.
The lender, Mayne Management Ltd, says that it will not exchange any of the loan for a convertible bond during the extended period. As the conversion price of the bond is 4p a share this is not surprising.

At the current share price of 0.35p (a bid/offer spread of 0.2p/0.5p), UniVision is valued at £1.34m.

The loan is to finance a shopping mall project in Zhongshan, China and in the event of default Mayne can claim up to 40% of the project. This project “was topping out in December 2008” according to UniVision.

The high costs of the borrowings are eating into Univision’s profits. UniVision increased its operating profit from £722,000 to £744,000 in the six months to September 2008, but pre-tax profits dipped from £676,00 to £356,000. Revenues fell from £5.38m to £4.28m. There was a cash outflow of £549,000 from operations.

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