Hong Kong-based UniVision Engineering (AIM:UVEL) told investors on Friday morning that it had entered into a Cooperation Framework Agreement with the Joint Venture between China Railway Engineering and China Railway Wuhan Electrification Engineering.
The London-listed group said this would put in place a framework of cooperation between itself and the CREHK-CRWE Joint Venture regarding future projects where they may work together.
“The Cooperation Framework Agreement will provide a consistent basis for our future potential work with them and allow us to pitch jointly for new projects within an agreed framework,” reiterated Chairman, Stephen Koo.
Terms relating to each project in future will be agreed upon on a case by case basis, the company added, but will remain within the framework set out in the agreement.
Shares in UniVision Engineering were trading 14.75% higher at 1.75p on Friday morning.
UniVision appointed the CREHK-CRWE Joint Venture as a sub-contractor in November.
The group views the partnership as important for bringing in ‘significant manpower, finance and other resources’, the firm explained in its previous November statement, to meet contractual obligations more efficiently.
Today’s agreement follows December interims which demonstrated a downturn in both revenue and profit for the six months ended 30 September 2019.
Interims reported a 28.8% decrease in income from construction contracts and an 18% decrease in gross profit margin from maintenance contracts.
Despite the decline, the group emphasised that the increasing demand for public security and surveillance would provide opportunity for business growth in the coming years.
Established predominantly in the field of industrial CCTV, UniVision has been working to expand its business into the integration of security systems.
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