Belgravium Technologies PLC Acquisition and Trading Update (7853Y)
December 04 2014 - 2:01AM
UK Regulatory
TIDMBVM
RNS Number : 7853Y
Belgravium Technologies PLC
04 December 2014
4 December 2014
BELGRAVIUM TECHNOLOGIES PLC
(AIM: BVM)
Acquisition and Trading Update
Acquisition
Belgravium Technologies ("Belgravium" or the "Company"), a
leading provider of software applications and solutions to the
retail, logistics and access control industries, is pleased to
announce that it has agreed to acquire the entire issued share
capital of Access Fire and Security Ltd ("AFS") for a consideration
of GBP500,000 payable in cash on completion, with a pound for pound
adjustment if there is less than GBP170,000 in cash in AFS's
balance sheet on completion. Completion is expected to take place
on 31 December 2014.
AFS supplies and installs, with fully managed after sales
service contracts, access control and security systems into both
commercial and educational establishments from its base in Henley
in Arden. The unaudited accounts of AFS for the year ended 31
January 2014 show a turnover of GBP729,000 and a profit on its
ordinary activities before taxation of GBP29,000 with the balance
sheet showing net assets of GBP213,000. The acquisition of AFS is
expected to be significantly earnings enhancing in the first
year.
This acquisition is in line with the Company's strategic
objective of further strengthening its presence in the access
control market and building on the success of the Feedback Data
purchase. It is intended to merge the AFS business into Feedback,
which will then operate from its existing base in Uckfield and the
new base in Henley in Arden. In addition to broadening the customer
base, the combination will allow Feedback to enhance its geographic
reach and to access additional security system sales and services
to its growing user base.
Trading update
As expected when the interim results were released on 3
September 2014, the second half of the year is proving stronger
than the first half. Revenues will have increased in the second
half and are currently expected to be around 8 per cent. higher for
the full year. Pre-tax profits have also been stronger in the
second half with the full year expected to be around 50 per cent.
higher than last year's profit of GBP336,000 before exceptionals.
This outcome for the year, which is below market expectations, has
been affected by a material contract which had been expected to
have been confirmed and delivered prior to the year-end. This
contract award however, has been deferred and is now expected to
fall in the first half of next year. If the contract had fallen in
the current year, the result of the year would have been in line
with market expectations.
Contacts:
Belgravium Technologies Plc www.belgravium-technologies.com
John Kembery, Executive Chairman +44 (0) 7770 731 021
WH Ireland Limited (Nominated Adviser and Broker) www.wh-ireland.co.uk
Mike Coe / Ed Allsopp (Corporate Finance) +44 (0) 117 945 3470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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