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Universe Group Share Price Surges on £4.4 million Agreement

Updated: 16 Nov 2021

Universe Group (LON: UNG) announced Tuesday that it has entered into an agreement worth approximately £4.4 million with an existing retail customer.

The agreement will see the company supply outdoor payment terminals for the forecourt estate of a “major existing retail customer.”

Universe Grup shares have jumped 19.5% to 5.5p following the news.

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Revenue from the contract will be recognised on delivery Universe Group said, with the timing remaining subject to further discussion. However, they did state that the revenue and profit would be incremental to management's existing expectations.

Neil Radley, CEO of Universe, commented: “We are very pleased to announce this contract, which emphasises our strong market position in this area. 

“This contract will deliver either an outperformance to our expectations for this financial year or, dependent on timing and the outcome of other customer proposals, provide a firm foundation as we enter the next financial year. We remain a business committed to a transition to a SaaS model focussed on recurring revenues and look forward to reporting further progress in that regard in due course.”

Should you invest in Universe Group shares?

Universe Group shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UNG shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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