Interim Results
September 04 2003 - 3:01AM
UK Regulatory
RNS Number:3681P
Belgravium Technologies PLC
04 September 2003
4 SEPTEMBER 2003
BELGRAVIUM TECHNOLOGIES PLC
(AIM)
INTERIM RESULTS FOR THE
SIX MONTHS TO JUNE 30 2003
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 months ended 30 June 2003.
HIGHLIGHTS
* Pre tax profits #387,000 (#755,000 at 30 June 2002)
* Sales of #1,767,000 (#2,188,000 2002)
* Cash in bank #1,592,200 (1,342,000 at 31 December 2002)
* Earnings per Share 0.42p (0.77p at 30 June 2002)
* Interim Dividend of 0.12p to be maintained
Commenting today, Chief Executive John Kembery said:
"The first half of 2003 was a difficult time for manufacturing and technology
industries and equally, for Belgravium. A reluctance to commit capital to proven
and needed projects has resulted in fewer enquiries than expected being
converted into orders.
Despite difficult trading conditions, Belgravium continues to generate and
conserve cash. The Company's balance sheet remains a strong platform for further
growth in both product and market development.
The first half of 2003 has been a setback, but our policy of development
continues unabated and based upon continuing profitability and cash generation."
For further information please contact:
Buchanan Communications ltd Kelly-Ann French
Mob: 07958 972164
Office: 01943 883990
Belgravium Technologies plc John Kembery
Mob: 07770 731021
www.belgraviuminvestorrelations.com
FULL STATEMENT ATTACHED
BELGRAVIUM TECHNOLOGIES PLC
INTERIM RESULTS 2003
CHAIRMAN'S STATEMENT
Results
The first half of 2003 was a difficult time for manufacturing and technology
industries and equally for Belgravium. Sales in the period were #1,767,000
compared to #2,188,000 in the first half of 2002, a drop of 19%. This distinct
slowdown is the result of a period of uncertainty which began more than a year
ago.
On these sales, Belgravium made a profit before tax of #387,000 (#755,000, 30th
June 2002) 49% less than the first half of 2002. This included a profit on the
disposal of surplus property of #56,000, an event referred to in the last annual
report.
Earnings per share fell from 0.77p per share in the first half of 2002 to 0.42p
per share for the first half of 2003. During the period the company purchased
one million of its own shares for cancellation at a time of market weakness,
leaving 67.8 million shares in issue at the end of June 2003.
Dividend
Confidence in the future and a strong cash position means that the Company can
continue its policy of paying dividends. The Directors are declaring an interim
dividend of 0.12p per share exactly the same as last year and payable on 3rd
December 2003 to shareholders on the Register on 7th November 2003.
Balance Sheet
Despite difficult trading conditions, the Company continues to generate and
conserve cash. Deposits at the bank totaled #1,592,200 at the end of June 2003
compared to #1,342,000 six months earlier at the end of 2002. Belgravium
generated #392,000 (2002: #503,000) of cash from operating activities, which
represents an operating profit to cash conversion ratio of 129% (2002: 69%).
The Company's balance sheet remains a strong platform for further growth,
product and market development.
The Market
Belgravium Technologies designs, manufactures and installs real time data
capture systems largely for the logistics and distribution industries of the UK
and Continental Europe. In the interim report for 2002 we stated that there had
been a "slow down in the speed with which projects were being converted into
contracts within the UK logistics industry in the current economic climate."
This caution and reluctance to commit capital to proven and needed projects has
remained a feature of the market ever since. At the time of the AGM in May 2003
we reported that there were signs that confidence might be returning but this
proved to be a false dawn and in the event, fewer than expected of the projects
in the pipeline were converted into orders. The second quarter was better than
the first but not sufficiently to avoid a weaker first half than originally
anticipated. On 14th July we issued a trading statement saying that it seemed
unlikely that the second half of the year could be strong enough for the
performance in 2003 to be in line with market expectation. Since that date
there are again indications that the third quarter might be a good deal
stronger.
Throughout this time of market uncertainty we have continued to uncover
potential business and our surveys and presentations have won approval from the
operational management of our customers. A slow down has occurred on the
financial side and it is restraint of capital spend which delayed authorisation
of final orders by customers. The fact that the pipeline of potential customers
grows ever longer, leads us to believe that this will eventually change and real
growth return.
New products introduced into the Belgravium range have been enthusiastically
received, particularly in Europe. Whilst we have supplied some Atlantas into
these markets, the first half of 2003 has been equally slow in Europe. We are
continuing to push forward in this sector of our sales with the intention of
growing levels to a more satisfactory proportion.
Strategy
We are completely confident that the quality of our goods and services combined
with the rapid payback that our systems offer will restore the kind of growth
achieved two years ago. For this to happen will require our customers to have
more confidence in the economic future. In the meantime, Belgravium is in a
very strong position to continue its policy of developing new products and
markets and its low cost base means that cost cutting is neither appropriate or
necessary.
We continue to strengthen our reputation in the logistics industry and, for
example, held another highly successful seminar in April with over 400
delegates. Not only do such events enhance our image but also provide leads
which have already resulted in orders. We continue to develop our European
network and have committed extra funds to supporting our distributors.
The Atlanta, which is relevant to many advances in technology, will also provide
a wider range of applications, eventually outside the logistics field. Atlanta
contracts have been completed in both the UK and Europe and our development team
is now working on the next generation of CE.net based products.
Outlook
There is no doubt that the medium term future for Belgravium is as bright as
ever. The first half of 2003 has been a setback but our policy of development
continues unabated and based upon continuing profitability and cash generation.
Recent order intake indicates that the third quarter will continue the improving
trend seen in the second. It is a little early to be sure but, if this were to
continue into the fourth quarter, the year might not be as bad as we thought and
the outgoing rate of sales would look good for 2004.
Unaudited Profit and Loss Account
for 6 months to 30th June 2003
Total Total
6 months to 6 months to
30th June 2003 30th June 2002
(Unaudited) (Unaudited)
#'000 #'000
Turnover 1,767 2,188
Operating profit 303 731
Profit on sale of property held for resale 56 0
Profit before interest and taxation 359 731
Net interest receivable 28 24
Profit on ordinary activities before taxation 387 755
Tax charge on ordinary activities (99) (226)
Profit on ordinary activities after taxation 288 529
Ordinary dividend (81) (83)
Retained profit for period 207 446
Basic earnings per ordinary share (pence) 0.42 0.77
Diluted earnings per ordinary share (pence) 0.42 0.76
Group Balance Sheet
at 30th June 2003
As at As at As at
30th June 2003 30th June 2002 31st December 2002
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets
Tangible assets 329 252 325
329 252 325
Current assets
Stocks 467 398 490
Debtors 1,236 1,205 1,060
Property held for re-sale 0 225 225
Cash at bank and in hand 1,592 1,623 1,342
3,295 3,451 3,117
Creditors:
Amounts falling due within one year (1,381) (1,899) (1,282)
Net current assets 1,914 1,552 1,835
Total assets less current liabilities 2,243 1,804 2,160
Provision for liabilities and charges
Provisions (79) (100) (87)
2,164 1,704 2,073
Capital and reserves
Called up share capital 3,391 3,441 3,441
Share premium 120 120 120
Capital redemption reserve 2,050 2,000 2,000
Revaluation reserve 0 25 25
Profit and loss account (3,397) (3,882) (3,513)
2,164 1,704 2,073
Group cash flow statement
for 6 months to 30th June 2003
2003 2002
(Unaudited) (Unaudited)
#'000 #'000
Net cash inflow from operating activities 392 503
Returns on investments and servicing of finances
Interest received 24 24
Dividends paid to ordinary shareholders (162) (103)
(138) (79)
Taxation - corporation tax paid (140) 0
Capital expenditure and financial investment
Purchase of tangible assets (29) (51)
Proceeds from disposal of property held for resale 281 0
252 (51)
Disposals
Proceeds from sale of subsidiary companies 0 80
0 80
Net cash inflow before financing 366 453
Financing
Purchase of own ordinary share capital (116) 0
Lease and hire purchase obligations repaid 0 (1)
(116) (1)
Increase in cash 250 452
Reconciliation of net cash flow to movement in net debt
2003 2002
(Unaudited) (Unaudited)
#'000 #'000
Increase in cash 250 452
Lease and hire purchase obligations repaid 0 1
Movement in net funds during year 250 453
Net funds at 1st January 1,342 1,170
Net funds at 30th June 1,592 1,623
Group cash flow statement
(a) Reconciliation of operating profit to net cash inflow from operating
activities
2003 2002
(Unaudited) (Unaudited)
#'000 #'000
Operating profit 303 731
Depreciation 25 41
Movement in provisions (8) (8)
Funds generated by operations 320 764
Decrease/(increase) in stocks 23 (83)
Increase in debtors (176) (311)
Increase in creditors 225 133
Decrease/(increase) in working capital 72 (261)
Net cash inflow from operating activities 392 503
(b) Analysis of net funds
At 1st January At 30th June
2003 Cash flow 2003
(Audited) (Unaudited) (Unaudited)
#'000 #'000 #'000
Cash at bank and in 1,342 250 1,592
hand
1,342 250 1,592
Notes to the Interim report
for 6 months to 30th June 2003
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 31st December 2002, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies
2. (a) Earnings per share has been calculated on the average number of
ordinary shares in issue of 68,328,521 (30th June 2002 : 68,825,759).
(b) Fully diluted earnings per share has been calculated on the average
number of ordinary shares, assuming conversion of all dilutive potential
ordinary shares of 68,662,003 (30th June 2002 : 69,804,036)
3. The record date for the proposed dividend for Belgravium Technologies plc
is 7th November 2003 (Ex-Dividend Date 5th November 2003)
4. 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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