TIDMBVM
RNS Number : 8117Y
Belgravium Technologies PLC
07 March 2012
Belgravium Technologies plc
Preliminary results for the
year ended 31 December 2011
The Board of Belgravium Technologies plc (AIM:BVM) 'Belgravium'
or 'The Group'), designers and suppliers of computing solutions and
services for mobile computing data capture in a wide variety of
industrial sectors, is pleased to announce preliminary results for
the year ended 31 December 2011.
Highlights:
Financial
- Revenues increased by 36% to GBP11,157,000 (2010: GBP8.200,000)
- Profit before tax increased by 137% to GBP1,024,000 (2010: GBP432,000)
- Proposed restoration of dividend
- Strong cash flows
- No net debt
- EPS rises to 0.87p (2010: 0.38p)
Operational
- Increasing revenues from delivering 'solutions' and managed services
- Strong sales performance including the contract won for
British Airways On-Board retail system
- New products developed for launch in 2012
- Sales team to be strengthened to enable greater geographic coverage
Commenting today, John Kembery, Executive Chairman of Belgravium
said: "2011 was a very good year in which we delivered a strong
financial performance and made substantial progress in achieving
our strategic objectives. Looking forward, although visibility on
sales is always limited, we believe our market position has
strengthened and that we are well placed to capture future
opportunities."
More information on Belgravium Technologies plc can be seen at
www.belgravium-IR.com
Enquiries:
Belgravium Technologies Plc www.belgravium-ir.com
John Kembery, Executive Chairman +44 (0) 7770 731021
Cadogan PR (Financial PR) www.cadoganpr.com
Alex Walters +44 (0) 7771713608
WH Ireland Limited (Nominated www.wh-ireland.co.uk
Adviser and Broker)
Mike Coe / Marc Davies (Corporate +44 (0) 117 945
Finance) 3470
Ruari McGirr / Jasper Berry +44 (0) 207 220
(Institutional Sales) 1691
CHAIRMAN'S STATEMENT
Last year I said in my statement "we expect Belgravium to return
to growth in 2011" and I'm delighted to say that this has proved
completely accurate with the Group significantly increasing both
revenue and profits year-on-year. In addition the Group's balance
sheet and cash position has significantly strengthened. As a result
I am delighted to report that the board now intends to restore
dividend payments.
Results
Revenues in the year increased by over 36% to GBP11,157,000
compared to GBP8,200,000 last year. On this revenue, Belgravium has
more than doubled pre-tax profit to GBP1,024,000 compared to
GBP432,000 last year. In addition, the continuing investment in
capital projects, research and development, has helped reduce the
tax charge to GBP148,000. As a consequence basic earnings per
ordinary share have risen to 0.87p which is also more than double
the 0.38p per share recorded in 2010.
Whilst sales have grown by 36% in 2011, administration expenses
have been managed carefully and are only 6% higher than the
previous year.
A major financial objective has been to repay the term loan.
During 2011, operating activities generated GBP1,738,000 and so
this policy has continued without limitation to capital
expenditure. I am delighted to report that since the year end the
term loan has been fully repaid and that the Group is now debt
free. At the year end cash equivalents amounted to GBP1,220,000
compared with GBP346,000 in 2010.
Dividend
We have always indicated that once conditions improved, the
Group would restore payment of dividends to ordinary shareholders.
Subject to shareholders' approval at the AGM, it is the Board's
intention to pay a dividend of 0.10 pence per Ordinary Share on 20
June 2012 to shareholders on the register on 25 May 2012.
OPERATIONAL REVIEW
The Group achieved a strong financial performance despite the
difficult economic conditions and has made progress on a number of
fronts to position itself well for the future. As has been the case
for some years, customers remain reluctant to commit to what are
perceived as significant capital projects but appear more willing
to agree projects of a profit and loss account nature. Our success
has been largely down to our ability to develop sales opportunities
where we have been able to demonstrate the economic benefits of
using Belgravium's complete services, which include hardware
software and increasingly support services as part of a 'wrapped'
solution. Often, as a result we are able to provide a solution,
which gives customers better value, and added functionality, which
we believe will be a continuing feature of our success.
Belgravium has continued to develop new mobile computing devices
and maintains an on-going process of consulting with clients to add
increasing refinements and functionality across the entire range,
working hard to identify trends and keep ahead of their needs. As a
result the group has developed three new products during 2011 which
will be launched in 2012. These include a new version of the
'Boston', the 'Hawk' and the truck mounted 'Vienna'.
Review of sales
The Belgravium Group supplies and manages a comprehensive range
of mobile computing services and solutions with a focus on the
logistics, transportation and on-board retailing sectors.
In the year, the Group actively worked alongside its strategic
partners to capture a greater market share, particularly in the
on-board retail sector where its system is now consistently being
chosen over competing products. As a result several significant new
contracts have been won in the period and there is a healthy
pipeline of new prospects. Belgravium now provides a retail
solution system to over 50 airlines in the world.
Notable contracts won in the period include:
Belgravium supplied a solution for Hermes, formerly Parcelnet;
the UK's largest courier based home delivery company handling more
than 140 million parcels per annum. Belgravium provided a complete
managed service to Hermes ensuring accurate data capture and proof
of delivery information at key tracking points. Belgravium supplied
in excess of 600 'Atlanta' mobile terminals, with the solution
installed across 23 depots in a six-week period.
A large French energy company and a customer that Belgravium has
worked with for several years awarded the replacement contract to
equip 1,200 vehicles with the 'Raven' mobile tablet device and
associated software. This contract will continue during 2012 with a
total contract value of approximately GBP3.3 million. This contract
requires on-going sales and technical services to ensure that the
customer's changing needs are met.
Belgravium, together with its strategic partner Tourvest Duty
Free, won the software and hardware contract to provide an
on-board, in-flight retail system for British Airways in the last
quarter of 2011. The system, using our SkyPOS software, utilises
around 1,900 Kestrel handsets. The whole solution, which included
the training of British Airways staff and cabin crew, installation
and testing, was completed within a very short time and the system
is proving to be both reliable and easy to use. As a result, the
Group is confident of continued growth in this market in the coming
years.
All three of these contracts were won against strong competition
and were eventually awarded on the greater merits of our solutions
and managed services, which will ensure both further business and
repeat revenues. Our focussed sales policy has produced results in
2011. To continue to capture increasing opportunities, the Board is
committed to strengthening the sales team to enable greater
geographic coverage. The impact of this policy will be evident in
2013 and beyond.
EMPLOYEES
The outcome of lengthy contract negotiations is often the
requirement to design and install a system in a timescale which a
few years ago would have been thought impossible. This situation
has arisen regularly throughout 2011, quite often with last minute
technical changes. As always, our staff at all levels have
responded to the challenges with energy and enthusiasm. During the
year we were delighted to be able to award a well deserved pay
review for an understanding and loyal workforce. There is no doubt
that the adverse market conditions of the recent years have
produced a tested and highly confident team, well capable of coping
with future challenges.
OUTLOOK
2011 was a very good year for Belgravium in which it delivered a
strong financial performance and made substantial progress in
achieving its commercial objectives. The Group now has a
strengthened market position and is well placed to capture future
opportunities as they arise and make further progress. The current
year has commenced in line with expectations but as usual there is
limited visibility on the level of future sales and with the
general economic climate, it remains cautious at this stage as to
the levels of growth achievable in the current year.
J P Kembery
Executive Chairman
6 March 2012
Audited consolidated income statement for the year ended 31
December 2011
2011 2010
GBP'000 GBP'000
-------------------------------------------------------------------------- ---------- ---------
Revenue 11,157 8,200
Cost of sales (6,335) (4,183)
-------------------------------------------------------------------------- ---------- ---------
Gross profit 4,822 4,017
Distribution costs (135) (91)
Administrative expenses (3,641) (3,440)
Operating profit 1,046 486
Finance income 1 -
Finance expense (23) (54)
-------------------------------------------------------------------------- ---------- ---------
Profit before income tax 1,024 432
Income tax charge (148) (50)
-------------------------------------------------------------------------- ---------- ---------
Profit for the year attributable to the owners of the parent 876 382
-------------------------------------------------------------------------- ---------- ---------
Earnings per ordinary share (pence) attributable to equity holders of the parent during the
year
Basic 0.87p 0.38p
-------------------------------------------------------------------------- ---------- ---------
0.87p
Diluted 0.87p 0.38p
-------------------------------------------------------------------------- ---------- ---------
Audited consolidated statement of changes in equity for the year
ended 31 December 2011
Called Capital Profit
up share Share redemption and loss
capital premium reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- --------- ------------ ---------- --------
Balance at 1
January 2010 5,047 2,932 2,100 (441) 9,638
Comprehensive
income
Profit for the
year - - - 382 382
Balance at 31
December 2010 5,047 2,932 2,100 (59) 10,020
Comprehensive
income
Profit for the
year - - - 876 876
Balance at 31
December 2011 5,047 2,932 2,100 817 10,896
---------------- ---------- --------- ------------ ---------- --------
Audited consolidated balance sheet as at 31 December 2011
2011 2010
GBP'000 GBP'000
-------------------------------------------------------------------- -------- --------
Non-current assets
Intangible assets
-------------------------------------------------------------------- -------- --------
Goodwill 9,124 9,124
Development expenditure 273 278
-------------------------------------------------------------------- -------- --------
9,397 9,402
Property, plant and equipment 383 257
-------------------------------------------------------------------- -------- --------
9,780 9,659
-------------------------------------------------------------------- -------- --------
Current assets
Inventories 1,544 1,152
Trade and other receivables 3,006 3,466
Current tax assets - 12
Cash and cash equivalents 1,220 346
5,770 4,976
-------------------------------------------------------------------- -------- --------
Total assets 15,550 14,635
-------------------------------------------------------------------- -------- --------
Current liabilities
Trade and other payables 3,319 3,927
Current income tax liabilities 157 -
Deferred income tax liabilities 70 61
Financial liabilities: Borrowings and finance lease liabilities 98 523
Short term provisions 13 17
3,657 4,528
-------------------------------------------------------------------- -------- --------
Non-current liabilities
Deferred income 949 -
Financial liabilities: Borrowings and finance lease liabilities 48 87
-------------------------------------------------------------------- -------- --------
Total liabilities 4,654 4,615
-------------------------------------------------------------------- -------- --------
Capital and reserves attributable to equity holders of the Company
Ordinary shares 5,047 5,047
Share premium 2,932 2,932
Capital redemption reserve 2,100 2,100
Profit and loss account 817 (59)
Total equity 10,896 10,020
-------------------------------------------------------------------- -------- --------
Total equity and liabilities 15,550 14,635
-------------------------------------------------------------------- -------- --------
Audited consolidated cash flow statement for the year ended 31
December 2011
2011 GBP'000 2010 GBP'000
Cash flows from operating activities
Operating profit 1,046 486
Depreciation 144 140
Amortisation 135 142
Movement in:
Provisions (4) -
Inventories (392) 71
Trade and other receivables 460 (939)
Trade and other payables 341 1,507
----------------------------------------------------------------- ------------- -------------
Cash generated from operations 1,730 1,407
Interest received 1 -
Interest paid (23) (54)
Corporation tax received 35 10
Corporation tax paid (5) -
Net cash generated from operating activities 1,738 1,363
----------------------------------------------------------------- ------------- -------------
Cash flows from investing activities
Purchase of intangible assets (130) (122)
Purchase of property, plant and equipment (208) (81)
----------------------------------------------------------------- ------------- -------------
Net cash used in investing activities (338) (203)
----------------------------------------------------------------- ------------- -------------
Cash flows from financing activities
Repayments of finance lease contracts (3) -
Repayment of bank borrowings (523) (457)
Net cash used in financing activities (526) (457)
----------------------------------------------------------------- ------------- -------------
Net increase in cash, cash equivalents and bank overdrafts 874 703
Cash, cash equivalents and bank overdrafts at start of the year 346 (357)
----------------------------------------------------------------- ------------- -------------
Cash, cash equivalents and bank overdrafts at end of the year 1,220 346
----------------------------------------------------------------- ------------- -------------
1. General information
Belgravium Technologies plc is a public company limited by share
capital incorporated and domiciled in the United Kingdom. The
Company has its listing on the Alternative Investment Market. The
address of its registered office is 1 George Square, Glasgow, G2
1AL.
2. Basis of preparation
The financial information set out in this document does not
constitute the Group financial statements for the year ended 31
December 2011 or 31 December 2010. The annual report and financial
statements for the year ended 31 December 2011 were approved by the
Board of Directors on 6 March 2012 along with this preliminary
announcement, but have not yet been delivered to the Registrar of
Companies.
The auditors' report on the financial statements for the year
ended 31 December 2011 was unqualified and did not contain a
statement under section 498 of the Companies Act 2006. Financial
statements for the year ended 31 December 2010 have been delivered
to the Registrar of Companies. The auditors' report on the
financial statements for the year ended 31 December 2010 was
unqualified and did not contain a statement under section 498 of
the Companies Act 2006.
The audited consolidated financial statements from which these
results are extracted have been prepared under the historical cost
convention and in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union, IFRIC
interpretations and those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
There have been no changes in accounting policies in the
year.
3. Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year are discussed below.
(a) Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any
impairment, in accordance with the accounting policy stated above.
The recoverable amounts of cash-generating units have been
determined based on value-in-use calculations. These calculations
require the use of estimates, both in arriving at the expected
future cash flows and the application of a suitable discount rate
in order to calculate the present value of these flows.
(b) Development expenditure
The Group recognises costs incurred on development projects as
an intangible asset which satisfy the requirements of IAS 38. The
calculation of the costs incurred includes the percentage of time
spent by certain employees on the development project. The decision
whether to capitalise and how to determine the period of economic
benefit of a development project requires an assessment of the
commercial viability of the project and the prospect of selling the
project to new or existing customers.
4. Audited reconciliation of net financial assets/(liabilities)
2011 GBP'000 2010 GBP'000
------------------------------------------------------------ ------------- -------------
Reconciliation of net financial assets/(liabilities)
Net increase in cash, cash equivalents and bank overdrafts 874 703
Net change in bank loans and finance leases 464 457
Movement in net financial assets/(liabilities) in the year 1,338 1,160
Net financial liabilities at beginning of year (264) (1,424)
Net financial assets/(liabilities) at end of year 1,074 (264)
------------------------------------------------------------ ------------- -------------
5. Earnings per share
2011 2010
----------------------------------- ------ ------
Basic earnings per ordinary share 0.87p 0.38p
Diluted earnings per ordinary
share 0.87p 0.38p
----------------------------------- ------ ------
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the year.
For diluted earnings per share, the weighted average number of
ordinary shares 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 year.
Reconciliations of the earnings and weighted average number of
shares used in the calculation are set out below:
2011 2010
Earnings Weighted average number of Earnings Weighted average number of
GBP'000 shares (in thousands) GBP'000 shares (in thousands)
Basic EPS
Earnings attributable to
ordinary shareholders 876 100,937 382 100,937
Effect of dilutive securities
Options - - - -
-------------------------------- --------- ------------------------------ --------- ------------------------------
Diluted EPS
Adjusted earnings 876 100,937 382 100,937
-------------------------------- --------- ------------------------------ --------- ------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UGUMWWUPPGQQ
Belgravium (LSE:BVM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Belgravium (LSE:BVM)
Historical Stock Chart
From Jul 2023 to Jul 2024
