RNS Number : 5889C
Belgravium Technologies PLC
03 September 2008
For Immediate Release 3 September 2008
Belgravium Technologies plc
Interim Results for the Six Months ended 30 June 2008
The Board of Belgravium Technologies plc ('Belgravium' or 'the Group'), designers and manufacturers of real-time data capture systems,
is pleased to announce Interim results for the six months ended 30 June 2008.
Key Financials:
30 June 2008 30 June 2007
* Turnover �3,942,000 �5,222,000
* Profit before �72,000 �1,024,000
tax
* Earnings per 0.05p 0.71p
share
Operational Overview:
* Strong recurring service, licence and maintenance revenue has offset reduction in new contracts secured during first half
* Commercial emphasis on software and support services in H2
* Belgravium's technology still required to improve customers; efficiency, cost control and growth
* Belgravium well positioned to capitalise in key sectors as markets recover
Commenting today, Executive Chairman John Kembery said:
"The economic downturn has impacted our growth strategy more heavily than originally anticipated. On account of this we have seen a weak
first half.
However, Belgravium provides a key service to its customers and whilst it is prudent to initially cut back in such economic conditions,
customers cannot negate quality of service to their customers indefinitely. We are confident that our offering remains valuable and we
cautiously expect a recovery at the end of 2008 and into 2009 as market conditions improve and customers reassess the value of our services
taking a longer term view."
For further information please contact:
Buchanan Communications Ltd Suzanne Brocks
Christian
Goodbody
020 7466 5000
Belgravium Technologies Plc John Kembery
Mob: 07770
731021
WH Ireland Gary Marshall
0113 394 6610
KPMG Corporate Finance Christian Mayo
0161 246 4000
Chairman's Statement
Results
Following a successful year for Belgravium in 2007, we arrive at the first half year end in 2008, in a very different economic climate,
experienced the world over.
We reported in an update on trading at the time of our AGM in May 2008, that given such a climate, we had experienced a slowdown in
trading, specifically in the number of forward order contracts secured which we believed would result in a first half result below
expectations.
In the half year ended 30 June 2008, sales totalled �3,942,000 compared with �5,222,000 in the first half of 2007. Accordingly, profit
before tax fell from �1,024,000 at the half year in 2007 to �72,000 in 2008 resulting in basic earnings per ordinary share of 0.05p per
share against 0.71p per share in 2007.
Operational Review
At the end of 2007 we reported that the Company had made good progress in its growth strategy and that there were attractive projects in
the pipeline which would contribute to organic growth in 2008 and beyond. As a result of a deterioration in the global economy experienced
across many sectors, new business generation has been difficult in the first half of 2008 and the shortfall in sales has had a direct effect
on profitability. Expected projects have not been lost or abandoned, rather customers have decided to re-examine, modify or postpone their
plans leading to a series of delays. Our installations are generally considered capital projects and the general lack of confidence has led
to a reluctance to commit to capital spend. We view this situation as a deferment of orders rather than a cancellation and we have
maintained our market share with no loss of orders to competitors.
The strong recurring nature of the Group's service, licence and maintenance revenue has helped to offset the reduction in new contracts
secured during the first half.
The Market
Uncertain trading conditions have been experienced across the whole of our industry. Belgravium is, however, well positioned to respond
to this challenge and it reinforces our view that commercial emphasis should fall on software and support services. This approach offers
more repeat business and better operating margins.
There is ample evidence that our systems improve customer efficiency, cost control and margin growth. We believe our clients will need
to retain their competitive edge and cannot defer these advantages indefinitely.
As the market begins to recover, Belgravium is extremely well positioned to capitalise on the market sectors it has successfully
developed.
Strategy
A year ago we stated that we intended to change our emphasis from hardware to software systems and support services. Despite changes to
economic conditions, this policy remains appropriate for the longer term success of the Group. We continue to place great emphasis on new
product development and maximised sales both within and outside the UK. We shall, of course, restrain costs wherever possible but must
maintain our excellent service by continuing our employment of high quality technical and sales staff.
Balance Sheet
We are pleased to report that total borrowings have decreased from �1.96m as at 31 December 2007 to �1.75m at 30 June 2008 as we pay
down the term loan used to finance the acquisition of Touchstar. We are currently retiring this facility at a rate of �500,000 per annum.
Inventories were higher than usual at the end of the first half reflecting the typically long lead times of electronic components for
our systems. Trade receivables were almost the same as a year ago and have not flexed with lower sales because June was a comparatively
strong month.
Dividend
The reduction in profit in the first half means it is not prudent for Belgravium to pay an interim dividend in 2008. The Directors are
committed to resuming a dividend payment as soon as possible once financial conditions permit.
Acquisitions
We continue to review possible acquisition opportunities. However these will only be pursued where they can demonstrate significant
incremental shareholder value. The Board continues to explore every opportunity, whilst taking a realistic view on funding requirements and
current market conditions.
Outlook
Belgravium Group occupies strong positions in its chosen market sectors and offers customers unique solutions to improve productivity
and efficiencies in the supply chain. Whilst the first half of 2008 witnessed a lengthening of the normal sales cycle, Belgravium's
strength, reputation, proven product range and dedicated team will allow progress to resume once market conditions improve.
Consolidated income statement
for the six months ended 30 June 2008
Notes 6 months to 6 months to
30 June 2008 30 June 2007
Total Total
(Unaudited) (Unaudited)
�'000 �'000
Revenue 3,942 5,222
Operating Profit 129 1,101
Finance income 5 19
Finance costs (62) (96)
Profit before tax 72 1,024
Income tax expense (22) (307)
Profit for the period attributable to 50 717
equity shareholders
Basic earnings per ordinary share (pence) 2 0.05 0.71
Diluted earning per ordinary share (pence) 2 0.05 0.71
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2008
Called up share Share premium Capital redemption Retained earnings Total
capital (Unaudited) account (Unaudited) reserve (Unaudited) (Unaudited)
�'000 �'000
(
�'000 �'000 Unaudi
ted)
�'000
At 30 June 2007 5,037 2,929 2,100 (1,453) 8,613
New Shares Issued 10 3 - - 13
Profit - - - 702 702
Equity Dividends - - - (141) (141)
At 31 December 2007 5,047 2,932 2,100 (892) 9,187
Profit - - - 50 50
Equity Dividends - - - (384) (384)
At 30 June 2008 5,047 2,932 2,100 (1,226) 8,853
Consolidated balance Sheet
at 30 June 2008
As at As at At at
30 June 2008 30 June 2007 31 December 2007
(Unaudited) (Unaudited) (Audited)
�'000 �'000 �'000
Non-current assets
Intangible Assets
Goodwill 9,124 9,124 9,124
Development expenditure 271 193 267
Property, plant and equipment 304 308 251
Deferred tax asset 7 27 7
9,706 9,652 9,649
Current assets
Inventories 1,497 1,078 1,262
Trade and other receivables 2,518 2,585 3,901
Cash and cash equivalents 1 590 2
4,016 4,253 5,165
Current liabilities
Trade and other payables 2,871 2,521 3,145
Current corporation tax 205 475 472
liabilities
Financial liabilities: 789 1,000 1,214
Borrowings
Provision for other 46 46 46
liabilities and charges
3,911 4,042 4,877
Net Current assets 105 211 288
Non current liabilities
Financial liabilities: 958 1,250 750
Borrowings
Net Assets 8,853 8,613 9,187
Shareholders' equity
Share capital 5,047 5,037 5,047
Share premium reserve 2,932 2,929 2,932
Capital redemption reserve 2,100 2,100 2,100
Profit and loss account (1,226) (1,453) (892)
Total equity 8,853 8,613 9,187
Consolidated cash flow statement
For 6 months to 30 June 2008
6 months to 6 months to
30 June 2008 30 June 2007
(Unaudited) �'000 (Unaudited) �'000
Cash flows from operating activities
Operating profit 129 1,101
Depreciation 66 89
Amortisation 55 32
Movement in:
Provisions - (5)
Inventories (235) 79
Trade and other receivables 1,383 715
Trade and other payables (278) (452)
Cash generated from operations 1,120 1,559
Interest received 5 17
Interest paid (58) (98)
Corporation tax paid (289) (156)
Net cash generated from operating 778 1,322
activities
Cash flows from investing activities
Expenditure of intangible fixed assets (59) (24)
Purchase of property, plant and (119) (36)
equipment
Net cash used in investing activities (178) (60)
Cash flows from financing activities
Proceeds from issuance of ordinary - 30
shares
Repayment of bank borrowings (292) (500)
Dividends paid to company's ordinary (384) (363)
shareholders
Repayment of capital on finance leases - (10)
Net cash used in financing activities (676) (843)
Net (decrease)/increase in cash and (76) 419
cash equivalents
Cash, cash equivalents and bank (212) 171
overdrafts at the beginning of the
period
Cash, cash equivalents and bank (288) 590
overdrafts at the end of the period
Notes to the interim report
For 6 months to 30 June 2008
1. This financial information comprises the consolidated interim balance sheet as at 30 June 2008 and 30 June 2007 and related
consolidated interim statement of income and cash flows for the six months then ended of
Belgravium Technologies plc (hereinafter referred to as 'financial information'). The interim consolidated financial statements for
the half year ended 30 June 2008 are neither audited nor reviewed by the auditors and
do not comprise statutory accounts within the meaning of section 240 of the Companies Act 1985.
These interim financial statements were approved by the Board on 2 September 2008.
These interim financial statements have been prepared in accordance with pronouncements on interim reporting issued by the ASB
and the accounting policies set out in the 2007 annual report and financial statements
which are prepared in accordance with IFRS as adopted by the European Union. The Group has chosen not to
adopt IAS 34 'Interim financial statements' in preparing its interim statements. The fi
2. Earnings per
ordinary share
2008 2007
(Unaudited) (Unaudited)
� �
Basic earnings per
0.05p 0.71p
ordinary share
Diluted earnings per
0.05p 0.71p
ordinary share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of ordinary share outstanding during the period.
For diluted earnings per share the weighted average number of ordinary share in issue is adjusted to assume conversion of all
dilutive ordinary shares. The dilutive ordinary shares represent the share options and
warrants granted to employees where the exercise price is
less than the average market price of the Company's ordinary shares during the period.
2008
2007
(Unaudited)
(Unaudited)
Weighted average
number of shares Weighted
Earnings
(in thousands) Earnings average number of
�'000
�'000 shares (in
thousands)
Basic EPS
Earnings attributable to ordinary shareholders 50
100,937 717 100,541
Effect of dilutive securities
Options -
16 - 461
Diluted EPS
Adjusted earnings 50
100,953 717 101,002
3.
The Company did not declare any dividends in the half year ended 30 June 2008
4. Copies of this statement will be posted to shareholders and further copies will be made available to the public at the Company's
office:- 2 Campus Road, Listerhills Science Park, Bradford, West Yorkshire, BD7 1HR, or
can be obtained from our website at www.belgravium-IR.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LTMFTMMBMBIP
Belgravium (LSE:BVM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Belgravium (LSE:BVM)
Historical Stock Chart
From Jul 2023 to Jul 2024
