Touchstar Plc Regulatory News (TST)

5 Sep 2005 07:00

Belgravium Technologies PLC05 September 2005 Immediate Release 05 September 2005 BELGRAVIUM TECHNOLOGIES PLC (BVM:AIM) INTERIM RESULTS FOR THE 6 MONTH PERIOD ENDED 30 JUNE 2005 The Board of Belgravium Technologies plc ("Belgravium" or "the Company"),designers and manufacturers of real-time data capture systems, are pleased to announce the Interim Results for the six month period ended 30 June 2005. HIGHLIGHTS Profit on ordinary activitybefore tax UP 23% £484,000 (£393,000 30 June 2004) Sales UP 22% £2,359,000 (£1,935,000 30 June 2004) Cash in bank UP 25% £2,484,000 (£1,987,000 30 June 2004) Earnings per Share UP 24% 0.51p (0.41p 30 June 2004) Interim Dividend Maintained 0.13p (0.13p 30 June 2004) Commenting today, Chief Executive John Kembery said: "The first half of 2005 has been very positive. Belgravium started the yearhaving received the largest order in its history, a £750,000 contract to supplya proof of delivery 'POD' system for Grattan. We are now beginning to see manymore POD systems being specified and this is an area for which the BelgraviumAtlanta product was specifically developed. Prospects, both at home and abroad, look very encouraging and in the longer termthere is a great deal of interest in Radio Frequency Identification 'RFID',which offers a large potential market. We still believe that an acquisition demonstrating real synergy with Belgraviumwould be highly desirable. The search continues and we are confident that wewill succeed. As we start the second half there is greater visibility of forward orders thanin previous years and greater confidence that our products are right for marketdevelopments." For further information please contact: Buchanan Communications ltdKelly-Ann French Mob: 07958 972164Alastair Watson Tel: 0207 466 5000 Belgravium Technologies plcJohn Kembery Mob: 07770 731021 www.belgraviuminvestorrelations.com Chairman's StatementSales in the six months to the end of June 2005 were £2,359,000, 22% higher thanin the same period in 2004. Profit on ordinary activities before tax alsoincreased to £484,000, 23% up on the first half of 2004. It is expected that thetax charge will be maintained at 30%, so that undiluted earnings per share showa healthy increase to 0.51p per share, 24% higher than earnings per share in thefirst half of 2004 (0.41p per share). In what is still a competitive market this was a positive result and in linewith market expectations. We have maintained an interim dividend at 0.13p perordinary share, the level to which it was increased last year. Balance SheetAs with the first half of 2004, the most noteworthy element in the balance sheetwas a steady increase in cash. At the end of June 2005, Belgravium had cashtotalling £2,484,000, compared to £1,987,000 at the end of June 2004. Whilstthis provided a useful interest payment (£54,000), its real benefit is as areserve for future activities. The MarketBelgravium started 2005 having received the largest order in its history, a£750,000 contract to supply a proof of delivery 'POD' system for Grattan. As inprevious years and in line with the seasonal trend, the first quarter was lighton sales. However, the second quarter was much better and whilst we are aware offew prospective orders of the Grattan size, we are now beginning to see manymore POD systems being specified. This is an area for which the BelgraviumAtlanta product was specifically developed. Prospects, both at home and abroad,look very encouraging and in the longer term there is a great deal of interestin Radio Frequency Identification 'RFID', currently only applied in Belgravium'stest projects but which offers a large potential market. As we reported a year ago, the market continues to seek more refined systems andwe are continually upgrading and improving the functions of Belgravium's productsuite. We have continued to invest in our technical and sales teams and whilstthis has added somewhat to costs, we believe the investment to be justified forfuture growth. AcquisitionsWe still believe that an acquisition demonstrating real synergy with Belgraviumwould be highly desirable. It is, of course, vital that we find the rightopportunity at the right price. The search continues and we are confident thatwe will succeed. EmployeesThe first half of 2005 has provided the usual challenges associated withseasonal trends. Belgravium's reputation for quality and service can only growwhen it matches these variations with good service. That this has happened is areal tribute to the commitment of its staff who have, as always, respondedbrilliantly. DividendLast year we increased the interim dividend and, whilst there is sufficient cashto do so again, the Directors feel that maintaining the dividend at 0.13p pershare will conserve cash for future activities. The record date is 4 November2005 and the interim dividend will be payable on 3 December 2005. OutlookThe first half of 2005 has been very positive. As we start the second half thereis greater visibility of forward orders than in previous years and greaterconfidence that our products are right for market developments. We wouldtherefore expect the second half of 2005 to be equally as strong as the first. FULL RESULTS BELOW Unaudited Profit and Loss Accountfor 6 months to 30 June 2005 Total Total 6 months to 6 months to 30 June 2005 30 June 2004 (Unaudited) (Unaudited) £'000 £'000 Turnover 2,359 1,935 Operating profit 430 350 ---------- ------------Profit before interest and taxation 430 350 ---------- ------------ Interest receivable 54 43 ---------- ------------Profit on ordinary activities before taxation 484 393 Tax charge on ordinary activities (145) (118) ---------- ------------Profit on ordinary activities after taxation 339 275 Ordinary dividend (87) (87) ---------- ------------Retained profit for period 252 188 ---------- ------------ Basic earnings per ordinary share (pence) 0.51 0.41 ---------- ------------ Diluted earnings per ordinary share (pence) 0.50 0.40 ---------- ------------ Group Balance Sheetat 30 June 2005 As at As at As at 30 June 2005 30 June 2004 31 December 2004 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Fixed assetsTangible assets 213 250 237 ---------- ---------- ------------ 213 250 237 ---------- ---------- ------------Current assetsStocks 548 452 443Debtors 1,426 1,408 1,458Cash at bank and in hand 2,484 1,987 2,219 ---------- ---------- ------------ 4,458 3,847 4,120 ---------- ---------- ------------Creditors:Amounts falling due withinone year (1,939) (1,713) (1,871) ---------- ---------- ------------Net current assets 2,519 2,134 2,249 ---------- ---------- ------------ Total assets less currentliabilities 2,732 2,384 2,486 Provision for liabilities andcharges (48) (66) (54) ---------- ---------- ------------ 2,684 2,318 2,432 ---------- ---------- ------------ Capital and reservesCalled up share capital 3,341 3,341 3,341Share premium 120 120 120Capital redemption reserve 2,100 2,100 2,100Profit and loss account (2,877) (3,243) (3,129) ---------- ---------- ------------ 2,684 2,318 2,432 ---------- ---------- ------------ Group cash flow statementfor 6 months to 30 June 2005 2005 2004 (Unaudited) (Unaudited) £'000 £'000 Net cash inflow from operating activities 511 272 ---------- ------------ Returns on investments and servicing of financesInterest received 54 43 ---------- ------------ TaxationCorporation tax paid (55) (62)Corporation tax received - 26 ---------- ------------Net corporation tax paid (55) (36) ---------- ------------ Capital expenditure and financial investmentPurchase of tangible assets (31) (10) ---------- ------------ (31) (10) ---------- ------------ Equity dividends paid to shareholders (214) (204) ---------- ------------Net cash inflow before financing 265 65 ---------- ------------ FinancingPurchase of own ordinary share capital - (121) ---------- ------------ - (121) ---------- ------------ Increase/(decrease) in cash 265 (56) ---------- ------------ Reconciliation of net cash flow to movement in net debtfor 6 months to 30 June 2005 2005 2004 (Unaudited) (Unaudited) £'000 £'000 Increase/(decrease) in cash 265 (56) ---------- ------------Movement in net funds during year 265 (56) Net funds at 1 January 2,219 2,043 ---------- ------------Net funds at 30 June 2,484 1,987 ---------- ------------ Group cash flow statement (a) Reconciliation of operating profit to net cash inflow from operatingactivities 2005 2004 (Unaudited) (Unaudited) £'000 £'000 Operating profit 430 350Depreciation 55 54Movement in provisions (6) (4) ---------- ------------Funds generated by operations 479 400 ---------- ------------ Increase in stocks (105) (9)Decrease/(increase) in debtors 32 (176)Increase in creditors 105 57 ---------- ------------(Increase)/decrease in working capital 32 (128) ---------- ------------Net cash inflow from operating activities 511 272 ---------- ------------ (b) Analysis of net funds At 1 January At 30 June 2005 Cash flow 2005 (Audited) (Unaudited) (Unaudited) £'000 £'000 £'000 Cash at bank and in hand 2,219 265 2,484 ---------- ---------- ------------ 2,219 265 2,484 ---------- ---------- ------------ Notes to the Interim reportfor 6 months to 30 June 2005 The interim report has not been audited and the information contained in thisinterim statement does not constitute statutory accounts as defined in section240 of the Companies Act 1985. The audited accounts for the year ended 31December 2004, upon which the auditors issued an unqualified opinion, have beendelivered to the Registrar of Companies. (a) Earnings per share has been calculated on the average number of ordinaryshares in issue of 66,825,759 (30 June 2004 : 67,600,484). (b) Fully diluted earnings per share has been calculated on the average numberof ordinary shares, assuming conversion of all dilutive potential ordinaryshares of 67,274,654 (30 June 2004 : 68,015,637). (c) The record date for the proposed dividend for Belgravium Technologies plcis 4 November 2005 (Ex-Dividend Date 2 November 2005). (d) Copies of this statement will be posted to shareholders and further copieswill be made available to the public at the company's office: Campus Road,Listerhills Science Park, Bradford, West Yorkshire, BD7 1HR. -ENDS- This information is provided by RNS The company news service from the London Stock Exchange