LONDON (Dow Jones)--UniVision Engineering Ltd (UVEL.LN), an AIM-listed Hong Kong based designer and installer of digital surveillance and integrated security systems, said Friday it anticipates recording a loss after tax for the year ended March 31 which it blamed a full impairment loss on its investment in Leader Smart Engineering (Shanghai) Ltd. as a result of litigation. MAIN FACTS: -Group has continued to experience stable demand for its maintenance projects. -Group is currently involved in litigation with Mr June Kam Ming Ip, a former director of Leader Smart Shanghai, in the Shanghai No.1 Intermediate People's Court. -Mr Ip is suspected of damaging the financial interest of Leader Smart Shanghai in form of undisclosed conflict of interest and misappropriation of assets amounting to CNY1.4 million (around GBP0.13 million). -Mr Ip had been the legal representative and a director of Leader Smart Shanghai since April 2008 and August 2005 respectively. -The Board of UniVision has taken legal action against Mr Ip for compensation in relation to the matters lodged in the Shanghai Court. -Shanghai Court issued a judgement on May 20, stating that, as a result of Mr Ip no longer holding the position of director and legal representative of Leader Smart Shanghai, he was required to return the business licences, company's chop and legal representative's chop to the Group. -Mr Ip has refused to follow the decision of the Shanghai Court; UniVision has commenced appeal proceedings and the Shanghai High Court will review the case on Aug. 4. -Group isn't currently able to exercise the right of control over Leader Smart Shanghai and its financials until the court case is concluded; Leader Smart Shanghai will therefore be excluded from the Group's consolidated results for the year ended March 31. -Shares at 0725 GMT unchanged at 0.35 pence valuing the company at GBP1.34 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296;
[email protected] (END) Dow Jones Newswires July 16, 2010 03:30 ET (07:30 GMT)