Shares gave UVS this write-up today - sounds worth a look, with active new management now in charge. The results mentioned are already out, with a swing into pretax profit of 1.5 mln stg in the year to April 30 2005 from a loss of 9.6 mln a year earlier. Turnover up 49.7 mln stg from 48.4 mln and gross margin improved from 18 pct to 20 pct.


Universal Salvage (UVS)
Former star stock Universal Salvage has
been dozing for almost three years now,
after the market lost faith in the company
when it lost its biggest contract. It all
started going downhill for the vehicle
salvage group after insurance group Direct
Line ended its contract, which was around
40% of Universals business. Others soon
followed. Prior to this, there were big
things expected from Universal as it was
well positioned to benefit from EU
legislation on recycling car parts. The
salvage industry was forced to invest
heavily in new recycling facilities, and
Universal was looking forward to a major
new revenue stream. However, legislation
has taken forever to be enforced and it
continues to drag on, with the future still
looking unclear.
Despite these setbacks, it now appears
that Universal is cleaning up its act. A new
chief executive came in last year who, over
the past 12 months, has renegotiated
banking facilities and attacked the
companys cost base. Joining him recently
was a new managing director who made a
crucial breakthrough in June by winning a
contract with Admiral Insurance.
Although Universal is still loss-making,
brokers are forecasting a return to profit
and neutral cashflow in 2006.

What the hell happened today? I didn't think the news was bad at all? Anyone care to enlighten me?