Retail and ‘loyalty’ systems group Universe, which lost £3.5 million last year, has made a £447,000 interim-stage, pre-tax profit.

The first half-year brought management changes and restructuring to the AIM-quoted company, where John Scholes and Paul Cooper became chairman and chief executive officer respectively in January, replacing Ray Mackie. Southampton-based Universe saw its revenues fall £161,000 to £6.2 million in the six months to June, despite the inclusion of some deferred income.

The operating profit on continuing business rose 60 per cent to £613,000, as the operating expenses were cut £464,000 to £553,000, before a ‘non-recurring’ cost of £70,000. The £447,000 pre-tax profit was £270,000 ahead of the previous first half’s outcome and earnings came out at 0.39p a share.

During the first six months, Universe strengthened its top management, especially in its core HTEC payment and loyalty systems division. Here, the declared strategy is to focus on cross selling and expanding its online services to new territories.

Universe, which raised £3 million at 7p in March, has reorganised HTEC into three divisions: domestic retail, international and manufacturing services. Cooper says the retail arm is pushing for sales from the ‘expanding independent [garage] forecourt sector’, where it has a 30 per cent market share, as the oil majors continue to pull out of forecourt ownership.

HTEC is currently testing an online electronic funds transfer system with a ‘major supermarket’. According to Scholes, Universe has identified ‘key strengths’ in online payment and loyalty systems as the basis of a ‘comprehensive future product offering’.

Cooper says he is confident the company’s current order book and prospects will result in a ‘satisfactory’ full-year outcome. At 7.25p, down from 1998’s 44p float price, Universe shares have yet to reflect this optimism, but should do so if the new strategy seems to be working.

Universe Group	AIM	£3.15m	2.75p	0.00p
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