Final Results
February 27 2003 - 2:01AM
UK Regulatory
RNS Number:0347I
Belgravium Technologies PLC
27 February 2003
FOR IMMEDIATE RELEASE 27 FEBRUARY 2003
BELGRAVIUM TECHNOLOGIES PLC
(AIM)
PRELIMINARY RESULTS FOR THE
YEAR ENDED 31 DECEMBER 2002
The Board of Belgravium Technologies Plc are pleased to announce the Preliminary
Results for the twelve months ending 31 December 2002.
HIGHLIGHTS
-continuing operations-
* Profits before tax rose by 5% to #1,405,000 (2001 #1,335,000)
* Earnings Per Share rose by 12% to 1.54p per share (2001 1.38p)
* Cash in bank increased from #1.171m in 2001 to #1.342m
* Final dividend payment of 0.24p per ordinary share to be paid on 29 May
2003 (subject to approval at AGM)
Commenting today, Chief Executive John Kembery said:
"Belgravium continues to produce positive results within a cautious market,
which is due to the quality of our products and services and the commitment of
our staff. The Board is pleased that the Company is continuing to expand and
develop year upon year. We shall move forward with our primary objective of
building a better company and expanding our activities in new areas and
markets."
FULL STATEMENT ATTACHED
Enquiries:
John Kembery
Belgravium Technologies Plc 07770 731021
Kelly-Ann French
Barnes and Walters Ltd 07958 972164
020 7430 1600
For further information, please visit:
www.belgraviuminvestorrelations.com
CHAIRMAN'S STATEMENT
Introduction
2002 was the first full year of operation as Belgravium Technologies plc with
the electronic data capture business separated from the engineering companies of
Eadie Holdings. However, because the separation occurred at the end of the
first quarter of 2001, the accounts still need to show discontinued operations
for comparative purposes. The continuing business of Belgravium Technologies
has produced good results and made real progress in 2002.
Results
Turnover on continuing operations in the year to 31 December 2002 fell by 7% to
#4,188,000 compared to #4,495,000 in 2001. Against this the business produced a
profit before tax of #1,405,000 compared with #1,335,000 in the previous year,
an increase of 5%. Earnings per share rose from 1.38p per share on continuing
business in 2001 to 1.54p per share in 2002, an increase of 12%. Cash increased
from #1,171,000 in the bank at the end of 2001 to #1,342,000 in 2002. A good
result in difficult conditions.
Dividend
With a strong cash position the Board is now able to follow through with its
commitment to maintain the dividends restored in 2001. We are pleased to
recommend a final dividend of 0.24p per ordinary share to be paid on 29 May
2003, subject to approval at the AGM. This will provide total dividends paid
and proposed in the year of 0.36p per ordinary share, compared to 0.15p per
share in 2001. We expect to at least maintain this level of dividend in the
future.
The Market
Belgravium designs, develops and installs real time data capture systems, aimed
specifically at the logistics industry. At the beginning of 2002 this industry
was buoyant and Belgravium's high quality and service enabled it to capture an
increased market share. As the year progressed however, the company became
aware of customers becoming more cautious in their approach to committing to
contracts, as mentioned in our last statement. We do not believe this is a
permanent feature and that underlying market demand is as strong as ever.
Belgravium's systems provide a very rapid payback for their users through
improved accuracy and efficiency in picking and despatch of goods. Our clients
still agree that they need and can afford our systems.
First half results were helped by significant export sales in Europe, an area we
have been developing for some time. In the second half of the year, activity
within Europe continued, although a similar caution was also apparent.
Operations
During this period, in which our turnover from continuing operations was down on
the same period last year, profits on ordinary activities before tax have risen
by 5%. We have not protected profits by cutting costs or avoiding expansion.
Rather we have increased spending on product and market development since this
is where we believe the future lies. Improvement in profitability has come from
lowering head office expense and from smaller more profitable contracts. In
such economic conditions, to produce an improved profit on lower turnover is a
huge tribute to the resilience of the business and the quality of its staff.
Balance Sheet
Since its separation from Eadie, Belgravium has continued to generate cash. As
at 31 December 2002 the cash balance increased by 15% on the previous year.
Cash decreased against the half year position following the payment of
corporation tax and an interim dividend.
As the year closed negotiations were proceeding to sell property inherited from
the Eadie Group and surplus to current operations. This sale has now been
completed and will realise proceeds of #290,000 before costs.
New Products and Markets
In April 2002 we hosted a highly successful seminar in Birmingham at which our
latest hardware product, the Atlanta, was launched. This product is important
to the development of the business because it has a wide variety of features now
thought essential in Continental Europe and becoming increasingly attractive in
the UK. Further this product greatly extends the potential area of real time
data capture and will, we believe, open up new market areas in the future. The
beginning of 2003 has seen an increasing number of enquiries.
Product development is crucial in a market where technology is rapidly
increasing capability. Further, we believe that future sales growth will
require European input and we will commit marketing resource to developing
recognition in these countries.
Employees
Belgravium consistently wins contracts with major logistic groups by the quality
of its products and service. In a cautious market this is increasingly
important and in the past year the Company has also needed to devote time and
resources to product and market development. The team responded brilliantly to
these challenges and the good result for the year is substantially due to their
efforts. Morale is high and our small team consistently delights in leading the
way against much larger competition.
Future Strategy
Our principal objective remains to build a group of technology businesses
capable of strong organic growth and centred around electronic data capture.
Product and market development is essential to this process both geographically
and in market sectors. We shall continue to devote all our energies to having
the right offering to meet the increasing technological demands of our customers
and to penetrate new markets. If an acquisition emerges we shall be ready but
the search will not divert us from the major task of organic growth.
Outlook
As has already been said, 2002 was a good year. We are confident of the longer
term future for Belgravium but current market caution has caused us to closely
examine short and medium term prospects. Based upon this, the directors
anticipate that trading for 2003 will be broadly in line with the previous year,
with the possibility of improvement if confidence returns to the market early.
We shall continue with our primary objective of building a better company and
expanding our activities in new areas and markets.
ENDS
BELGRAVIUM TECHNOLOGIES PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2002
Total Continuing Discontinued Total
Operations Operations
2002 2001 2001 2001
#'000 #'000 #'000 #'000
Turnover 4,188 4,495 3,302 7,797
Cost of sales 1,212 1,453 2,815 4,268
Gross profit 2,976 3,042 487 3,529
Distribution costs 21 21 115 136
Administrative expenses 1,602 1,695 580 2,275
1,623 1,716 695 2,411
Operating profit/(loss) 1,353 1,326 (208) 1,118
Loss on sale of
discontinued operations - - (3,331) (3,331)
Profit/(loss) on ordinary
activities before interest
and taxation 1,353 1,326 (3,539) (2,213)
Net interest receivable/ 52 9 (33) (24)
(payable)
Profit/(loss) on ordinary
activities before taxation 1,405 1,335 (3,572) (2,237)
Tax charge/(credit) on profit/
(loss) on ordinary activities 342 403 (75) 328
Profit/(loss) on ordinary
activities after taxation 1,063 932 (3,497) (2,565)
Ordinary dividend (248) (103) - (103)
Profit/(loss) retained for the 815 829 (3,497) (2,668)
year
Basic earnings/ (loss) per
ordinary share 1.54p (3.81p)
Diluted earnings/ (loss) per 1.53p (3.80p)
ordinary share
Adjusted basic earnings/ (loss)
per ordinary share 1.38p (5.20p)
There are no recognised gains or losses other than the profit for the year.
The results for 2002 are generated from continuing operations.
BELGRAVIUM TECHNOLOGIES PLC
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2002
2002 2001
#'000 #'000
Fixed assets
Tangible assets 325 242
Current assets
Stocks 490 315
Debtors 1,060 974
Property held for resale 225 225
Cash at bank and in hand 1,342 1,171
3,117 2,685
Creditors: amounts falling due within one year (1,282) (1,561)
Net current assets 1,835 1,124
Total assets less current liabilities 2,160 1,366
Provisions for liabilities and charges (87) (108)
Net assets 2,073 1,258
Capital and reserves
Called up share capital 3,441 3,441
Share premium account 120 120
Capital redemption reserve 2,000 2,000
Revaluation reserve 25 25
Profit and loss account (3,513) (4,328)
Total equity shareholders' funds 2,073 1,258
BELGRAVIUM TECHNOLOGIES PLC
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002
2002 2001
#'000 #'000
Net cash inflow from operating activities 909 1,851
Returns on investment and servicing of finance
Interest received 52 20
Interest paid - (46)
Finance charges paid under finance leases and hire purchase
contracts - (4)
Dividends paid to ordinary shareholders (186) -
(134) (30)
Taxation - corporation tax paid (538) -
Capital expenditure and financial investment
Purchase of tangible fixed assets (145) (236)
Proceeds from disposal of property held for resale - 230
(145) (6)
Acquisitions and disposals
Proceeds from sale of subsidiary companies 80 3,385
Disposal costs - (311)
Cash of subsidiary companies sold - (2,242)
80 832
Net cash inflow before financing 172 2,647
Financing
Proceeds from issue of ordinary shares - 420
Lease and hire purchase obligations repaid (1) (51)
Loan capital repaid - (1,352)
(1) (983)
Increase in cash 171 1,664
Further information
* Annual General Meeting ("AGM") to be held on Thursday 8 May 2003 at 10:30,
at DLA, Victoria House, Victoria Square, Birmingham, B2 4DL
* Dividend payment date 29 May 2003 (subject to approval at the AGM)
* Ex-dividend date 23 April 2003
* Record date 25 April 2003
* Report and Accounts being posted to shareholders on March 27 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
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