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7 Sep 2011 07:00
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Belgravium Technologies plc
Interim Results for the Six Months ended 30 June 2011
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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 2011.
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Key Financials:
30 June 2011 30 June 2010
Β·; Turnover Β£4,773,000 Β£3,657,000
Β·; Profit before tax Β£321,000 Β£26,000
Β·; Basic earnings per share 0.24p 0.03p
Β·; Net Cash/ (Debt) Β£638,000 (Β£711,000)
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Highlights:
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Commenting on the interim results, John Kembery, Chairman of Belgravium, said:
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"Belgravium has delivered a first half performance in line with expectations and orders received to date mean that the Group will have a second half which is constrained only by supply chain and production capabilities. I am also pleased to report a significant strengthening of our balance sheet which shows net cash of Β£638,000 versus a net debt position of Β£711,000 twelve months ago"
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For further information please contact:
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Belgravium Technologies Plc | John Kembery: 07770 731021 |
KPMG Corporate Finance - Nominated Adviser | Christian Mayo: 0113 231 3000 |
WH Ireland - Broker | Jessica Metcalf: 0113 394 6623 |
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KPMG Corporate Finance, a division of KPMG LLP which is authorised and regulated by the Financial Services Authority for investment business activities, is acting for the Belgravium as nominated adviser in relation to the matters set out in this announcement and is not acting for any other person in relation to these matters. KPMG Corporate Finance will not be responsible to anyone other than Belgravium for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement.
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CHAIRMAN'S INTERIM STATEMENT 2011
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RESULTS
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Belgravium entered 2011 with a stronger order book and better prospects, than for many
years. We have capitalised on these conditions to produce a good interim result with more to come in the second half.
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Sales in the six months period ended 30 June 2011 totalled Β£4,773,000, a 30% improvement over the first half of 2010 (Β£3,657,000). Profit before tax increased to Β£321,000 compared to Β£26,000 in 2010. After tax, this produced earnings of Β£247,000 or basic earnings per ordinary share of 0.24p per share compared to 0.03p per ordinary share in the first half of 2010.
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THE MARKET
The Group is a specialist in providing complete data capture systems for the logistics, petrochemical and mobile retailing markets. There is a large international market for these products both as new systems and as replacement for older equipment. The last three years of financial restraint has not diminished this need but meant that opportunities have been more difficult to convert into orders. Belgravium has responded with a five point strategy aimed at helping the customer to eventually make a decision in our favour. This began to pay off in 2010 with orders reaching into 2011 and it is pleasing to report that the momentum has continued. Competitors do not appear to have faired so well and this should benefit the Group in the longer term, the only uncertainty being the effect of further financial problems in the Eurozone.
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OPERATIONAL REVIEW
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In 2010, we negotiated a contract in France worth β¬4 million which will run until 2012. In addition, there were two mobile retailing orders early in 2011 and a variety of smaller orders which meant that the Group was significantly busier than in prior years. In the second quarter we gained a contract from Hermes (for delivery in the second half 2011) to replace an existing logistics system as well as a few smaller orders in the petrochemical market. For the second half of the year we have an order for a major airline retailing system, using our hardware and software, which is scheduled to be completed before the year end. Thus, all parts of the business are now working close to full capacity in order to meet this challenging schedule of procurement, assembly and delivery.
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To ensure that we capitalise on improving trends in our markets we have recruited a limited number of technical people and will continue to do so where we find staff of the right calibre and experience.
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BALANCE SHEET
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Cash generation has continued strongly and cash or equivalents at the period end stood out at Β£987,000 compared to Β£161,000 at the end of June 2010. We continue to repay the term loan at a monthly rate which will make the Group free of debt by early 2012. Allowing for the working capital requirements of the large orders in the production pipeline, we will consider paying off the loan slightly ahead of plan, so that the Group ends the year ungeared.
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DIVIDEND
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The Board continues to place high priority on the repayment of the term loan and managing cashflow, therefore, does not think it prudent to pay an interim dividend. However, once the financial needs of the Group are clearer at the year end, we will consider reinstating a final dividend for the current year.
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ACQUISITIONS
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Our growth objectives always included acquisitions aimed at expanding geographic or sectoral coverage. These plans have had to be shelved whilst cash was scarce and our market capitalisation low. Now that the Group will soon be ungeared the time is right to start examining suitable acquisition prospects. We are already examining some opportunities.
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OUTLOOK
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Belgravium has produced results in the first half of 2011 in line with expectations and orders received to date mean that the Group will have a second half which is constrained only by supply chain and production capabilities. Whilst we are mindful of wider economic challenges, our strategic and competitive strength gives us confidence that we are well placed to continue our steady sales and profit improvement in the longer term.
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Consolidated income statement for the six months ended 30 June 2011 | Β Β | Β | |
Β Β Β Β Β Β | Notes | 6 months to 30 June 2011 Total (Unaudited) Β£'000 | 6 months to 30 June 2010 Total (Unaudited) Β£'000 |
Β Revenue | Β 4,773 | Β 3,657 | |
Β Operating profit | Β 334 | Β 56 | |
Β Finance income | Β 1 | Β - | |
Β Finance costs | Β (14) | Β (30) | |
Β Profit before tax | Β 321 | Β 26 | |
Β Income tax expense Β | Β (74) | Β - | |
Profit for the period attributable to equity shareholders | 247 | 26 | |
Β Basic earnings per ordinary share (pence) | Β 2 | Β 0.24 | Β 0.03 |
Β Diluted earnings per ordinary share (pence) | Β 2 | Β 0.24 | Β 0.03 |
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Consolidated statement of changes in equity for the six months ended 30 June 2011 | |||||
Called up share capital Β (Unaudited) Β£'000 Β | Share premium account (Unaudited) Β£'000 | Capital redemption reserve (Unaudited) Β£'000 | Profit and loss account Β (Unaudited) Β£'000 | Total Β Β (Unaudited) Β£'000 | |
At 30 June 2010 Β | 5,047 | 2,932 | 2,100 | (415) | 9,664 |
Profit Β | - | - | - | 356 | 356 |
At 31 December 2010 Β | 5,047 | 2,932 | 2,100 | (59) | 10,020 |
Profit Β | - | - | - | 247 | 247 |
At 30 June 2011 | 5,047 | 2,932 | 2,100 | 188 | 10,267 |
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Consolidated balance sheet at 30 June 2011 | |||
As at 30 June 2011 (Unaudited) Β£'000 | As at 30 June 2010 (Unaudited) Β£'000 | At at 31 December 2010 (Audited) Β£'000 | |
Β Β Non-current assets | |||
Intangible Assets | |||
Goodwill | 9,124 | 9,124 | 9,124 |
Other intangible assets | 246 | 294 | 278 |
Property, plant and equipment | 248 | 275 | 257 |
9,618 | 9,693 | 9,659 | |
Current assets | |||
Inventories | 1,574 | 1,317 | 1,152 |
Trade and other receivables | 2,627 | 1,581 | 3,466 |
Current tax asset | - | 39 | 12 |
Cash and cash equivalents | 987 | 161 | 346 |
5,188 | 3,098 | 4,976 | |
Total assets | 14,806 | 12,791 | 14,635 |
Current liabilities | |||
Trade and other payables | 4,015 | 2,199 | 3,927 |
Current corporation tax liabilities | 97 | - | - |
Deferred income tax liabilities | 61 | 39 | 61 |
Financial liabilities: Borrowings | Β 349 | Β 523 | Β 523 |
Short term provisions Β | 17 | 17 | 17 |
4,539 | 2,778 | 4,528 | |
Β Non current liabilities | |||
Financial liabilities: Borrowings Β | Β - | Β 349 | Β 87 |
Total liabilities | 4,539 | 3,127 | 4,615 |
Β Capital and reserves attributable to equity holders of the company | |||
Ordinary shares | 5,047 | 5,047 | 5,047 |
Share premium reserve | 2,932 | 2,932 | 2,932 |
Capital redemption reserve | 2,100 | 2,100 | 2,100 |
Profit and loss account Β | 188 | (415) | (59) |
Total equity | 10,267 | 9,664 | 10,020 |
Total equity and liabilities | 14,806 | 12,791 | 14,635 |
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Consolidated statement of cash flows For 6 months to 30 June 2011 | ||
6 months to Β 30 June 2011 (Unaudited) Β£'000 | 6 months to Β 30 June 2010 (Unaudited) Β£'000 | |
Cash flows from operating activities Β | ||
Operating profit | 334 | 56 |
Depreciation | 62 | 74 |
Amortisation | 66 | 67 |
Movement in: | ||
Inventories | (422) | (94) |
Trade and other receivables | 839 | 946 |
Trade and other payables | 88 | (221) |
Cash generated from operations Β | 967 | 828 |
Interest paid | (14) | (30) |
Interest received | 1 | - |
Corporation tax received | 35 | 11 |
Net cash generated from operating activities Β | 989 | 809 |
Cash flows from investing activities Β | ||
Expenditure on intangible fixed assets | (34) | (63) |
Purchase of property, plant and equipment Β | (53) | (33) |
Net cash used in investing activities | (87) | (96) |
Β Cash flows from financing activities Β | ||
Repayment of bank borrowings | (261) Β | (195) |
Net cash used in financing activities | (261) | (195) |
Β Net increase in cash and cash equivalents Β | Β 641 | Β 518 |
Cash, cash equivalents and bank overdrafts at the beginning of the period Β | 346 | (357) |
Cash, cash equivalents and bank overdrafts at the end of the period | 987 | 161 |
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Notes to the interim report For 6 months to 30 June 2011 | ||||||||||
Β 1. | Β This financial information comprises the condensed consolidated interim balance sheet as at 30 June 2011 and 30 June 2010 and related consolidated interim statement of income and cash flows for the six months then ended of Belgravium Technologies plc (hereinafter referred to as 'financial information'). Belgravium Technologies plc is listed on the Alternative Investment Market. This financial information for the half year ended 30 June 2011 has neither been audited nor reviewed and does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. This financial information was approved by the Board on 6 September 2011. Β This financial information has been prepared in accordance with pronouncements on interim reporting issued by the ASB, AIM rule 18 and the accounting policies set out in the 2010 annual report and financial statements which are prepared in accordance with IFRS as adopted by the European Union. The Group has chosen not to adopt IAS 34 'Interim financial statements' in preparing this financial information. This financial information has been prepared under the historical cost convention. Β The audited accounts for the year ended 31 December 2010 upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. The audit report on the 2010 accounts did not contain an emphasis of matter paragraph and did not contain a statement made under section 498 of the Companies Act 2006. Β | |||||||||
2. | Earnings per ordinary share | |||||||||
2011 (Unaudited) Β£ | 2010 (Unaudited) Β£ | |||||||||
Β Basic earnings per ordinary share | Β Β 0.24p | Β 0.03p | ||||||||
Diluted earnings per ordinary share Β | 0.24p | 0.03p | ||||||||
Β 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 period. Β 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. Β | ||||||||||
2011 (Unaudited) | 2010 (Unaudited) | |||||||||
Β Earnings Β£'000 | Weighted average number of shares (in thousands) | Β Earnings Β£'000 | Weighted average number of shares (in thousands) | |||||||
Basic EPS | ||||||||||
Earnings attributable to ordinary shareholders | 247 | 100,937 | 26 | 100,937 | ||||||
Effect of dilutive securities | ||||||||||
Options | - | - | - | - | ||||||
Β Diluted EPS | ||||||||||
Adjusted earnings | 247 | 100,937 | 26 | 100,937 | ||||||
Β 3. | Β The Company did not declare any dividends in the half year ended 30 June 2011. Β | |||||||||
4. | Copies of this statement will be made available to the public at the Company's office:- 2 Campus Road, Listerhills Science Park, Bradford, West Yorkshire, BD7 1HR, or can be obtained from our website at www.belgravium-IR.com | |||||||||
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