Shares digital

The shares of retail and loyalty systems group Universe (UNG:AIM) were given a much-needed boost, rising roughly 11% to 6p, after it announced a series of new contract wins, acquisitions and reassured the market that trading is in line with expectations.

The first of these contract wins has been secured with Murco Petroleum through Universe’s principal trading subsidiary, HTEC, which makes terminals to read chip and pin cards. Through the deal, HTEC’s HydraPOS software will be installed in Murco’s Costcutter branded stores. Murco currently runs more than 160 sites in the UK and the deal will enable all these sites to carry out online credit card transactions using Murco’s own linked network. The contract value is expected to be more than £500,000 during 2008.

In addition, Universe has formed a new subsidiary company, Jet Set Wash Services, to focus on the provision of its car wash and valeting services. The new company will be made up of Universe’s existing car wash and valeting services as well as two new acquisitions. The first of these is of certain assets of AIB Services, which trades as ‘Jet Set’, for up to £584,000. Bedford-based AIB is a manufacturer and installer of a range of car wash, jet wash, vacuum and valeting systems.

Universe has also signed heads of terms to buy Edinburgh-based WSF Services, an established vehicle-cleaning equipment provider. This acquisition is due to complete before the end of the month and will extend Universe’s jet wash and valeting services into the Scottish market.

‘The acquisition of AIB together with WSF will give us an excellent platform from which to build the new valeting business line,’ says chief executive Paul Cooper. ‘WSF gives us immediate access to the valeting market in Scotland, and a strong northern service base.’

Lastly, Universe has clinched a deal with the Co-Operative Group for the installation of air and vacuum dispensing equipment on all its 165 sites. The contract is on a shared revenue basis over the life of the equipment.

Universe expects all these contract wins and acquisitions to be earnings-enhancing in the current year.

Shares says: Positive news following previous disappointments, boding well for future growth.