Universe

Recovery play Universe, the retail and loyalty systems group reinvigorated under a new management duo, has announced two major contracts with existing clients.

Core payment and loyalty systems arm HTEC has inked an agreement with BP Netherlands to roll out 575 online loyalty terminals. The work entails the upgrade and expansion of the existing online loyalty scheme for long-time client BP and the deal is worth an initial £350,000.

Furthermore, a deal worth €880,000 (£600,000) involving the first phase of the roll out of a global software system, has been signed with a mystery oil major. ‘This client is one of the biggies,’ promises chairman John Scholes, insisting both deals reflect the benefits of a recent restructuring involving the introduction of new management and systems and renewed focus on sales and marketing.

As well as promising similar deals with other oil majors, Scholes sees plenty of scope for growth within an impressive existing client base that includes Chevron, Asda and Total. ‘Only Morrisons take the bulk of what we do,’ he explains, ‘so there’s scope with the likes of BP in terms of more countries and in terms of them taking up more of what we do’, such as Universe’s Virtual Back Office (VBO) system, which is able to manage an entire forecourt operation.

Recommended by GCI at 7.25p, Universe, which lost £3.5m last year with all write-offs included, is forecast to deliver pre-tax profits of £1.3m for the year to December from £14.3m sales, giving earnings of 0.9p. Based on those metrics, the forward p/e of 10.3 looks undemanding. Buy