Belgravium positive despite plunging profits

A STRONGER second half has given hope to Bradford-based Belgravium Technologies after a dramatic pre-tax profit slide.

The data capture and real time computing systems specialist saw profits before tax slip from £2m in 2007 to £398,000 for the year ended December 31, 2008.

Turnover during the period was £8.3m compared to £10.6m the year before. Basic earnings per ordinary share fell from 1.41p per share in 2007 to 0.39p per share in 2008.

Belgravium said that its results were in line with revised market expectations and reflected a year in which “unprecedented worldwide economic problems” had led to a general loss of buying confidence in all its markets.

However, its second half performance indicates an improvement with a turnover of £4,3m (first half £3,9m) profit before tax of £326,000 (first half £72,000).

Cash flow also continues to be positive with net debt reducing by £294,000 after paying 2007 dividends and taxation.

It added that “attractive projects” that had been in the pipeline at the beginning of 2008 were delayed by a loss of financial confidence – not lost.

Belgravium designs and installs real time data capture systems in the logistics, petrochemical and mobile retailing markets, the latter with particular application in aeroplanes and trains.

“Our strategy in such a market has been to apply all our resources, both sales and technical, to ensure we work with our customer base to overcome such problems,” the company added.

Belgravium said that the strong recurring nature of its service, licence and maintenance revenue, together with the increasing provision of software licences had helped mitigate the reduction in major contracts. Cost reductions have been made including staff losses.

However, the firm said that it had entered the new year with its growth strategy intact.

“The second half of 2008 showed an improvement over the first half and we believe that this momentum will be maintained in 2009,” it continued.

“It will be supplemented by major projects which will generate improved profitability but, at present, it is not possible to say that this will occur in the current financial year.”