RNS Number:5888I
Belgravium Technologies PLC
07 September 2006
07 September 2006
Belgravium Technologies Plc
(BVM:AIM)
Interim Results for the
6 months to 30 June 2006
The Board of Belgravium Technologies plc ("Belgravium" or "the Group"),
designers and manufacturers of real-time data capture systems, is pleased to
announce the Interim Results for the 6 months to 30 June 2006.
FINANICAL HIGHLIGHTS
6 months to 6 months
30 June 2006 30 June 2005
* Turnover UP #4,982,000 #2,359,000
* Operating Profits* UP #780,000 #430,000
* Cash in Bank #817,000 #2,484,000
* Basic EPS* 0.51p 0.51p
* Dividend Maintained 0.13p 0.13p
*before goodwill amortisation
Commenting today, Executive Chairman John Kembery said:
"After a slow first quarter and the inevitable issues of incorporating two new
businesses into the Group, this is a good interim result. Much has been
achieved in this period to build confidence that the Company will benefit from
these acquisitions in the second half of 2006 and in future years.
Following on from the acquisitions of both Touchstar and Novo IVC, the Group is
well on the way towards developing a unified technical resource where sales
opportunities have already benefited from this approach.
Prospects for the second half are good and we are confident that the full year
will show a significant advance on 2005."
For further information please contact:
Buchanan Communications ltd Kelly-Ann French
Mob: 07958 972164
Belgravium Technologies plc John Kembery
Mob: 07770 731021
www.belgraviuminvestorrelations.com
CHAIRMAN'S STATEMENT
RESULTS
Total sales in the six months to the end of June 2006 were #4,982,000, more than
double the #2,359,000 sold in the same period in 2005. This increase in
turnover was largely as a result of the acquisition of Touchstar Limited in
October 2005 and Novo IVC in January 2006. Operating profit, before amortisation
of goodwill, increased by 81% from #430,000 in 2005 to #780,000 in 2006. With
an anticipated tax charge of 30%, basic earnings before amortisation of goodwill
on the expanded share capital of the Company were maintained at 0.51p per
ordinary share.
After a slow first quarter and the inevitable issues of incorporating two new
businesses into the Group, this is a good interim result. Much has been
achieved in this period to build confidence that the Company will benefit from
these acquisitions in the second half of 2006 and in future years.
Belgravium Ltd ("Belgravium")
The first quarter was quiet for Belgravium, a market feature in recent years.
Equally we have become used to logistics contracts becoming more transactional,
with technical excellence and post sales support being less of a buying motive.
To maintain our position in this market, we have adopted new sales strategies
which have brought results in winning contracts; too late to improve the second
quarter but an indication of a better second half to come. Equally there has
been some success in our long term drive to develop new and related markets and
to provide solutions to customer problems by new technical capability, some of
which came from Touchstar. Overall, Belgravium has benefited from the
integration process with Touchstar and looks to the future with confidence.
Touchstar Ltd ("Touchstar")
Touchstar manufactures and supplies data capture systems largely for the oil and
petrochemical industry and, through Novo IVC, for airlines and railways. These
are generally comparatively large contracts taking many months in negotiation
and operational trials by customers. Touchstar has an excellent reputation in
its chosen markets but, as we were aware at the time of the acquisition, its
forecasts for 2006 were underwritten by no new contracts. During the last
quarter of 2005 and the first half of 2006 we have built an international sales
and marketing team and re-developed relationships with customers and selling
partners. We have also listened carefully to operators' views of present and
future technical requirements to ensure that Touchstar products continue to
anticipate market needs.
As a result, we enter the second half of 2006 with firm orders from new
customers and a wide range of opportunities for market development and growth.
Additionally, this is on a truly international basis, which offers the longer
term possibility of being less vulnerable to market cycles at home.
Novo IVC ("Novo")
Novo IVC is a recognised leader in the supply of mobile retailing systems
currently used in aeroplanes and trains and with a multitude of other possible
applications. It uses Touchstar hardware but has vitally important in-house
software capability and has agreement with WM Data for back office software. At
the end of 2006 it is the intention to integrate Novo as a selling and
operational division of Touchstar which will give the necessary sales focus to
provide for broad market development. In the meantime the necessary
organisational changes have been agreed and real progress has been made in
ensuring that the Group has all the facilities needed to capture what could be
major growth. Some very good contracts are in prospect for 2007.
Technical Development
One of the significant benefits offered by the acquisition of Touchstar was the
sharing of technical resources. The first stage of this plan required a
technical strategy identifying current and future product and system needs,
establishing priorities and allocating resources. This has been completed and
some early results achieved. The Group is well on the way towards developing a
unified technical resource and sales opportunities have already benefited from
this approach.
Balance Sheet
The balance sheet shows the strengthened Group position, following the
acquisitions. Gearing has increased as a result of a bank term loan but the
cash position remains strong. At an operational level, the Belgravium Group is
cash generative. Loan repayments will commence as planned in October 2006.
Dividend
The Directors remain committed to a policy of paying as good a dividend as
trading conditions and the cash position will allow. The second half shows
promise, and with a strong cash position, we propose paying an interim dividend
of 0.13p per share, a level proposed in 2004 and held in 2005, on 6 December
2006 to shareholders on the Register on 10 November 2006.
Employees
There were some gaps in the organisational structure of Touchstar which have now
been filled but, on the whole, we have been delighted by the capabilities of
employees at both Touchstar and Novo. The way in which they have co-operated
with the integration plans has also been outstanding. The Group now has some
very high calibre people in all departments.
Outlook
It is always difficult to forecast performance immediately after acquisitions.
Despite a slow start to 2006, performance in the second quarter has begun to
demonstrate the benefits of the work we have put into building a Group wide
sales function and regenerating our sales pipeline. Prospects for the second
half are good and we are confident that the full year will show a significant
advance on 2005. Longer term opportunities have been greatly enhanced by the
Group's expansion and the outlook is generally good for the Belgravium Group.
FULL RESULTS BELOW
Unaudited Profit and Loss Account
for 6 months to 30 June 2006
6 months to
6 months to 30 June 2006 30 June 2005
Continuing (as restated)
operations Acquisitions Total Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000 #'000
Turnover 3,942 1,040 4,982 2,359
Operating profit before goodwill amortisation 748 32 780 430
Goodwill amortisation (205) (27) (232) -
Operating profit 543 5 548 430
Net interest payable (49) -
Net interest receivable - 54
Profit on ordinary activities before taxation 499 484
Tax charge on ordinary activities (218) (145)
Profit on ordinary activities after taxation 281 339
Ordinary dividend paid (321) (214)
(Sustained loss)/retained profit for the period (40) 125
Basic earnings per ordinary share (pence) 0.28 0.51
Diluted earnings per ordinary share (pence) 0.28 0.50
Group Balance Sheet
at 30 June 2006
As at As at As at
30 June 2006 30 June 2005 31 December 2005
(as restated)
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Intangible assets 9,069 - 8,232
Tangible assets 381 213 325
9,450 213 8,557
Current assets
Stocks 1,225 548 1,103
Debtors 2,271 1,426 2,479
Cash at bank and in hand 817 2,484 1,799
4,313 4,458 5,381
Creditors:
Amounts falling due within one year (4,064) (1,852) (6,189)
Net current assets 249 2,606 (808)
Total assets less current liabilities 9,699 2,819 7,749
Creditors amounts falling due after more than one year (2,250) - (170)
Provision for liabilities and charges (83) (48) (173)
Net assets 7,366 2,771 7,406
Capital and reserves
Called up share capital 5,021 3,341 5,021
Share premium 2,915 120 2,915
Capital redemption reserve 2,100 2,100 2,100
Profit and loss account (2,670) (2,790) (2,630)
Total equity shareholders' funds 7,366 2,771 7,406
Group cash flow statement
for 6 months to 30 June 2006
2006 2005
(Unaudited) (Unaudited)
#'000 #'000
Net cash inflow from operating activities 1,112 511
Returns on investments and servicing of finances
Interest received 26 54
Interest paid (35) -
(9) 54
Taxation
Corporation tax paid (714) (55)
Corporation tax received 150 -
(564) (55)
Capital expenditure and financial investment
Purchase of intangible fixed assets (56) -
Purchase of tangible fixed assets (87) (31)
(143) (31)
Acquisitions
Acquisition of subsidiary company (1,316) -
Acquisition expenses (357) -
Cash at bank and in hand acquired with subsidiary 616 -
(1,057) -
Equity dividends paid to shareholders (321) (214)
Net cash (outflow)/inflow before financing (982) 265
Financing
New bank loan 2,580 -
Payment of loan notes (2,580) -
- -
(Decrease)/increase in cash in the period (982) 265
Reconciliation of net cash flow to movement in net debt
for 6 months to 30 June 2006
2006 2005
(Unaudited) (Unaudited)
#'000 #'000
(Decrease)/increase in cash (982) 265
Movement in net funds during year (982) 265
Net (debt)/funds at 1 January (1,201) 2,219
Net (debt)/funds at 30 June (2,183) 2,484
Group cash flow statement
(a) Reconciliation of operating profit to net cash inflow from
operating activities
2006 2005
(Unaudited) (Unaudited)
#'000 #'000
Operating profit 548 430
Depreciation 97 55
Amortisation 257 -
Movement in provisions (90) (6)
Funds generated by operations 812 479
Decrease/(increase) in stocks 23 (105)
Decrease in debtors 457 32
(Decrease)/increase in creditors (180) 105
Decrease in working capital 300 32
Net cash inflow from operating activities 1,112 511
(b) Analysis of net funds
At 1 January At 30 June
2006 Cash flow 2006
(Audited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Cash at bank and in hand 1,799 (982) 817
Debt due within one year (2,830) 2,080 (750)
Debt due after one year (170) (2,080) (2,250)
(1,201) (982) (2,183)
Notes to the Interim Report
For the 6 months to 30 June 2006
1. The interim report has not been audited and the information contained in
this interim statement does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985. The audited accounts for the year ended
31 December 2005 upon which the auditors issued a qualified opinion, have been
delivered to the Registrar of Companies.
2. During the year ended 31 December 2005 the Group adopted FRS 17 'Retirement
benefits', FRS 21'Events after the balance sheet date', and FRS 28
'Corresponding amounts'. The adoption of each of these standards represents a
change in accounting policy and the comparative figures have been restated
accordingly, except where the exemption to restate comparatives had been taken.
The prior year adjustment relates to the implementation of FRS 21. The adoption
of FRS 21 has resulted in an increase in shareholders funds of #87,000 at 1 July
2005 due to the write back of the interim proposed dividend at 30 June 2005.
3. Earnings per ordinary share
2006 2005
(Unaudited) (Unaudited)
#'000 #'000
Basic earnings per ordinary share 0.28p 0.51p
Diluted earnings per ordinary share 0.28p 0.50p
Basic earnings per ordinary share before goodwill amortisation 0.51p 0.51p
Diluted earnings per ordinary share before goodwill amortisation 0.51p 0.50p
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
For diluted earnings per share the weighted average number of ordinary shares in
the issue is adjusted to assume conversation of all diluted 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.
Basic earnings per ordinary share before goodwill amortisation and diluted
earnings per ordinary share before goodwill amortisation is based on profit on
ordinary activities after taxation but before goodwill amortisation of #232,000,
being #513,000.
2006 2005
(Unaudited) (Unaudited)
Weighted Weighted
average average number
number
Earnings of shares Earnings of shares
#'000 (in #'000 (in thousands)
thousands)
Basic EPS
Earnings attributable to ordinary shareholders 281 100,426 339 66,826
Effect of dilutive securities
Options - 679 - 449
Diluted EPS
Adjusted earnings 281 101,105 339 67,275
Earnings per share before goodwill amortisation
Basic EPS 281 100,426 339 66,826
Goodwill amortisation 232 - - -
Basic EPS before goodwill amortisation 513 100,426 339 66,826
Diluted EPS 281 101,105 339 67,275
Goodwill amortisation 232 - - -
Diluted EPS before goodwill amortisation 513 101,105 339 67,275
4. Acquisitions
On 13 January 2006 the Company acquired the entire share capital of Novo IVC
Limited for a total consideration of #1,315,000 plus costs of #357,000 being the
fair value of the consideration.
The book and provisional fair value of the assets acquired are as follows:-
#'000
Intangible assets
Goodwill 21
Other 57
Fixed assets 66
Stock 145
Debtors 424
Cash 616
Creditors (616)
Net assets acquired 713
Goodwill 960
1,673
Satisfied by
Cash 1,316
Costs 357
1,673
The book value of the assets and liabilities have been taken from the accounting
records of Novo IVC Limited at 13 January 2006. No fair value adjustments have
been made to date.
5. The record date for the interim dividend for Belgravium Technologies
plc is 10 November 2006 (Ex-Dividend date 8 November 2006)
6. Copies of this statement will be posted to shareholders and further
copies will be made available to the public at the Company's office:- Campus
Road, Listerhills Science Park, Bradford, West Yorkshire, BD7 1HR.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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