RNS Number:2984D
Belgravium Technologies PLC
05 September 2007
For Immediate Release 5 September 2007
Belgravium Technologies Plc
(BVM:AIM)
Interim Results for the six months ended 30 June 2007
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 2007.
FINANCIAL HIGHLIGHTS
* Turnover #5,222,000 (2006: #4,982,000) +5%
* Profits before int. & tax #1,101,000 (2006: #780,000) +41%
* Interim dividend 0.14p (2006: 0.13p) +8%
* Earnings per Share 0.71p (2006: 0.51p) +39%
OPERATIONAL HIGHLIGHTS
* Results clearly demonstrate growing strength of business
* Touchstar Technologies Ltd and Novo IVC show significant contributions
* Opportunities for cross-selling across the enlarged group exploited
* Sharing of technical expertise and resources across divisions
Commenting today, Executive Chairman John Kembery said:
"I am delighted to report a strong start to 2007. The acquisitions of Touchstar
and Novo have been very successful in supplementing the Group's profitable
growth with improved profits and earnings per share in the first half of 2007.
"We have worked hard to restructure and refine Belgravium into a Group with a
portfolio of first class products, an efficient operational structure and wider
offering through successful integration of new businesses. Belgravium is now
well positioned to take advantage of opportunities ahead in an international
market."
For further information please contact:
Belgravium Technologies plc 07770 731021
John Kembery, Chairman
Buchanan Communications 020 7466 5000
Suzanne Brocks
www.belgraviuminvestorrelations.com
Interim Results 2007
CHAIRMAN'S STATEMENT
Results
I am delighted to report a strong start to 2007, with profit before interest and
taxation for the six months to 30 June 2007 having increased by 41% to
#1,101,000 (2006: #780,000). This is based on sales of #5,222,000, a 5% rise
from the prior year (2006: #4,982,000).
These results clearly demonstrate the growing strength of the business, which
now includes Touchstar Technologies Ltd ("Touchstar") and Novo IVC Ltd ("Novo"),
both of whom have contributed well towards the half year numbers. Based on
these figures, and an assumed tax rate of 30%, basic earnings per share for the
half year to 30 June 2007 increased by 39% to 0.71p (2006: 0.51p).
The Market
The Group now supplies, installs and maintains data capture systems for
warehousing and distribution, petrochemical delivery systems, mobile retailing
and proof of delivery applications. All of these sectors provide real growth
opportunities. As information technology becomes more widely understood,
Belgravium is perfectly placed with its offering of high quality products,
specifically designed to meet the demands of each market in which the Group
operates. In order to achieve further organic growth, Belgravium has expanded
its range of products and has reduced costs through improved efficiencies. Very
good progress has been made in our historical logistics market. At the same
time, we have integrated two acquisitions and phased out the inevitable legacies
in design and services. The result is that the Group now represents a
restructured, balanced business with a first class product range in a growing
market place.
Our sales operation has also seen significant improvements, and we are actively
seeking to expand sales partnerships abroad, particularly in Europe and the USA.
Operations
The acquisition of Touchstar and later Novo was not only aimed at increasing the
Group's turnover. It was also anticipated that a major benefit would be derived
from a larger operating base plus a reduction in costs from better use of shared
resources, with less outsourced components and services. A comparison of costs
in the first half of 2007 with the same period in 2006 demonstrates this cost
reduction very clearly, with further benefits to come. This has been
particularly evident across our technical operations where considerable progress
has been made through a unified development programme. The range and scope of
products continues to improve with some excellent new designs in the pipeline.
Any technical and operating difficulties have been systematically overcome and
we believe effective management teams are now in place across all divisions.
Balance Sheet
Our balance sheet clearly demonstrates the benefits of the acquisitions of
Touchstar and Novo for the Group. Of particular note is the cash position,
which stood at #590,000 at 30 June 2007 (31 December 2006: #171,000). This
achievement is even more significant given the monthly repayments of the term
loan used to partly fund the purchase of Touchstar, and demonstrates that
Belgravium remains highly cash generative.
Employees
The integration of Touchstar and Novo into the Group could not have happened
without the active co-operation of employees at all levels. The new operational
structure makes optimum use of individual skills as well as improving job
satisfaction.
Dividend
The Directors remain committed to as high a level of dividend as the Group's
cash generation will allow. Given the good performance in the first half of
2007, we propose paying an interim dividend of 0.14p per share on 6th December
2007 to shareholders on the Register on 9th November 2007. This represents an
increase of 8% (2006: 0.13p).
Acquisitions
To continue the progress of the past year, Belgravium is exploring new sectors
within the vast data capture markets. Our experience tells us that the most
successful way of achieving this is by acquiring specialised market focused
businesses that trigger each new application. This is not easy to do because
such companies are not always classified in a way that makes their synergy with
Belgravium obvious. But, when identified and added to a group with existing
hardware, the results can be very worthwhile, as we successfully experienced
with our acquisition of Novo. Our search for further suitable acquisition
opportunities continues and has already resulted in close investigation of many
companies.
Outlook
The acquisitions of Touchstar and Novo have been very successful in
supplementing the Group's profitable growth with improved profits and earnings
per share in the first half of 2007.
Whilst we have fully met our expectations for the first half of 2007 and
succeeded in building a full pipeline of sales opportunities for the second half
of 2007 and beyond, recent economic uncertainty has introduced some caution into
customers' buying patterns. So, while we have every reason to believe that the
Group will continue to successfully convert its pipeline of sales opportunities
in the second half, there remains the prospect of some small delays in the
timing of certain contracts. In overall terms, however, we remain confident that
the progress achieved in the first half will continue into the second and that
plans already actioned will continue to bring further benefits.
In summary, we have worked hard to restructure and refine Belgravium into a
Group with a portfolio of first class products, an efficient operational
structure and wider offering through successful integration of new businesses.
Belgravium is now well positioned to take advantage of opportunities ahead in an
international market.
Consolidated income statement
for the six months ended 30 June 2007
Notes 6 months to 6 months to
30 June 2007 30 June 2006
Total Total
(Unaudited) (Unaudited)
#'000 #'000
Revenue 5,222 4,982
Operating profit 1,101 780
Finance income 19 24
Finance costs (96) (73)
Profit before income tax 1,024 731
Income tax expense (307) (218)
Profit for the period 717 513
Basic earnings per ordinary share (pence) 2 0.71 0.51
Diluted earnings per ordinary share (pence) 2 0.71 0.51
Consolidated statement of changes in shareholders' equity
for the six months ended 30 June 2007
Called up share Share premium Capital redemption Retained Total
capital account reserve earnings
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000 #'000 #'000
At 1 January 2006 5,021 2,915 2,100 (2,630) 7,406
Profit - - - 513 513
Equity dividends - - - (321) (321)
At 30 June 2006 5,021 2,915 2,100 (2,438) 7,598
Profit - - - 762 762
Equity dividends - - - (131) (131)
At 31 December 2006 5,021 2,915 2,100 (1,807) 8,229
New shares issued 16 14 - - 30
Profit - - - 717 717
Equity dividends - - - (363) (363)
At 30 June 2007 5,037 2,929 2,100 (1,453) 8,613
Consolidated balance sheet
at 30 June 2007
As at As at As at
30 June 2007 30 June 2006 31 December 2006
(Unaudited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Non-current assets
Intangible assets
Goodwill 9,124 9,124 9,124
Development expenditure 193 177 201
Property, plant and equipment 308 381 361
Deferred tax asset 27 7 27
9,652 9,689 9,713
Current assets
Inventories 1,078 1,225 1,157
Trade and other receivables 2,585 2,264 3,298
Cash and cash equivalents 590 817 171
4,253 4,306 4,626
Current liabilities
Borrowings 1,000 750 1,000
Trade and other payables 2,521 2,721 2,980
Current corporation tax liabilities 475 593 324
Provision for other liabilities and charges 46 83 51
4,042 4,147 4,355
Net current assets 9,863 9,848 9,984
Non current liabilities
Borrowings 1,250 2,250 1,755
Net assets 8,613 7,598 8,229
Shareholders' equity
Share capital 5,037 5,021 5,021
Share premium reserve 2,929 2,915 2,915
Capital redemption reserve 2,100 2,100 2,100
Profit and loss account (1,453) (2,438) (1,807)
Total equity 8,613 7,598 8,229
Consolidated cash flow statement
for 6 months to 30 June 2007
6 months to 6 months to
30 June 2007 30 June 2006
(Unaudited) (Unaudited)
#'000 #'000
Cash flows from operating activities
Operating profit 1,101 780
Depreciation 89 97
Amortisation 32 25
Movement in provisions (5) (90)
Inventories 79 23
Trade and other receivables 715 457
Trade and other payables (452) (180)
Cash generated from operations 1,559 1,112
Interest received 17 26
Interest paid (98) (35)
Corporation tax paid (156) (714)
Corporation tax received - 150
Net cash generated from operating activities 1,322 539
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - (700)
Acquisition expenses - (357)
Purchase of intangible fixed assets (24) (56)
Purchase of tangible fixed assets (36) (87)
Net cash used in investing activities (60) (1,200)
Cash flows from financing activities
Proceeds from issuance of ordinary shares 30 -
Proceeds from bank borrowings - 2,580
Repayment of bank borrowings (500) -
Repayment of loan notes - (2,580)
Repayment of hire purchase contracts (10) -
Equity dividends paid to shareholders (363) (321)
Net cash used in financing activities (843) (321)
Net increase/(decrease) in cash and cash equivalents 419 (982)
Cash and cash equivalents at the beginning of the period 171 1,799
Cash and cash equivalents at the end of the period 590 817
Notes to the Interim report
for 6 months to 30 June 2007
1. This financial information comprises the consolidated interim balance
sheet as at 30 June 2007 and 30 June 2006 and related consolidated interim
statements 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 2007
are unaudited and do not comprise statutory accounts within the meaning of
section 240 of the Companies Act 1985
These interim financial statements have been prepared in accordance with
International Financial Reporting Standards and IFRIC interpretations as adopted
by the EU and with those parts of the Companies Act 1985 applicable to companies
reporting under IFRS. The Group has chosen not to adopt IAS 34, 'Interim
financial statements' in preparing its interim statements. The financial
statements have been prepared under the historical cost convention.
The comparative figures for the financial year ended 31 December 2006 are not
the Group's statutory accounts for the financial year, but have been extracted
from the statutory accounts, which were unqualified by the auditors and did not
contain statements under section 237(2) or (3) of the Companies Act 1985 and
have been delivered to the Registrar of Companies.
2. Earnings per ordinary share
2007 2006
(Unaudited) (Unaudited)
#'000 #'000
Basic earnings per ordinary share 0.71p 0.51p
Diluted earnings per ordinary share 0.71p 0.51p
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
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.
2007 2006
(Unaudited) (Unaudited)
Weighted Weighted
average number average number
Earnings of shares Earnings of shares
#'000 (in thousands) #'000 (in thousands)
Basic EPS
Earnings attributable to ordinary shareholders 717 100,541 513 100,426
Effect of dilutive securities
Options - 461 - 679
Diluted EPS
Adjusted earnings 717 101,002 513 101,105
3. The record date for the interim dividend for Belgravium Technologies
plc is 9 November 2007 (Ex-Dividend date 7 November 2007)
4. Explanation of transition to IFRS
The only adjustment on transition to IFRS from UK GAAP relates to the
amortisation of goodwill #232,000 at 30 June 2006 and #464,000 at 31 December
2006
Reconciliation of profit for the half-year ended 30 June 2006
UK GAAP Goodwill IFRS
Revenue 4,982 - 4,982
Operating profit 548 232 780
Finance income 24 - 24
Finance costs (73) - (73)
Profit before income tax 499 232 731
Income tax expense (218) - (218)
Profit for the year 281 232 513
Basic earnings per ordinary share (pence) 0.28 0.51
Diluted earnings per ordinary share (pence) 0.28 0.51
Reconciliation of profit for the year ended 31 December 2006
UK GAAP Goodwill IFRS
Revenue 10,922 - 10,922
Operating profit 1,529 464 1,993
Finance income 32 - 32
Finance costs (181) - (181)
Profit before income tax 1,380 464 1,844
Income tax expense (569) - (569)
Profit for the year 811 464 1,275
Basic earnings per ordinary share (pence) 0.81 1.27
Diluted earnings per ordinary share (pence) 0.80 1.26
Reconciliation of the consolidated balance sheet as at 30 June 2006
UK GAAP Goodwill IFRS
Non-current assets
Intangible assets
Goodwill 8,892 232 9,124
Development expenditure 177 - 177
Property, plant and equipment 381 - 381
Deferred tax asset 7 - 7
9,457 232 9,689
Current assets
Inventories 1,225 - 1,225
Trade and other receivables 2,264 - 2,264
Cash and cash equivalents 817 - 817
4,306 - 4,306
Current liabilities
Borrowings 750 - 750
Trade and other payables 2,721 - 2,721
Current corporation tax liabilities 593 - 593
Provision for other liabilities and charges 83 - 83
4,147 - 4,147
Net current assets 9,616 232 9,848
Non current liabilities
Borrowings 2,250 - 2,250
Net assets 7,366 232 7,598
Shareholders' equity
Share capital 5,021 - 5,021
Share premium reserve 2,915 - 2,915
Capital redemption reserve 2,100 - 2,100
Profit and loss account (2,670) 232 (2,438)
Total equity 7,366 232 7,598
Reconciliation of the consolidated balance sheet as at 31 December 2006
UK GAAP Goodwill IFRS
Non-current assets
Intangible assets
Goodwill 8,660 464 9,124
Development expenditure 201 - 201
Property, plant and equipment 361 - 361
Deferred tax asset 27 - 27
9,249 464 9,713
Current assets
Inventories 1,157 - 1,157
Trade and other receivables 3,298 - 3,298
Cash and cash equivalents 171 - 171
4,626 - 4,626
Current liabilities
Borrowings 1,000 - 1,000
Trade and other payables 2,980 - 2,980
Current corporation tax liabilities 324 - 324
Provision for other liabilities and charges 51 - 51
4,355 - 4,355
Net current assets 9,520 464 9,984
Non current liabilities
Borrowings 1,755 - 1,755
Net assets 7,765 464 8,229
Shareholders' equity
Share capital 5,021 - 5,021
Share premium reserve 2,915 - 2,915
Capital redemption reserve 2,100 - 2,100
Profit and loss account (2,271) 464 (1,807)
Total equity 7,765 464 8,229
Consolidated cash flow statement
The adoption of IFRS does not impact the amount of cash previously disclosed
under UK GAAP in any of the periods of account in the interim results
5. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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