TIDMBVM
RNS Number : 5720Z
Belgravium Technologies PLC
21 September 2015
21 September 2015
Belgravium Technologies plc
Interim Results for the Six Months ended 30 June 2015
The Board of Belgravium Technologies plc ((AIM:BVM) 'Belgravium'
or 'the Group'), suppliers of mobile data computing solutions and
managed services to a variety of industrial sectors, is pleased to
announce its interim results for the six months ended 30 June
2015.
Key Financials:
30 June 2015 30 June 2014
-- Turnover GBP4,431,000 GBP4,568,000
-- Adjusted post tax profit* GBP90,000 GBP223,000
-- Adjusted earnings per share* 0.09p 0.22p
-- Adjusted EBITDA* GBP266,000 GBP422,000
-- Cash & cash equivalents GBP414,000 GBP1,409,000
* Calculated before exceptional items
Commenting on the interim results, Ian Martin, Chairman of
Belgravium, said:
"This year will be a year of transformation for Belgravium. A
restructuring programme is underway which will see the Group
benefit next year and in subsequent years from a much lower cost
base, coherent structure and new energy.
For further information please contact:
Belgravium Technologies Ian Martin: 07968 184923
Plc Mark Hardy: 01274 741860
W H Ireland - Nominated Mike Coe/Ed Allsopp:
Adviser 0117 945 3470
WH Ireland - Investor Jessica Metcalf: 0113
Relations 394 6623
Information on Belgravium Technologies plc can be seen at:
www.belgravium-technologies.com
CHAIRMAN'S INTERIM STATEMENT - 2015
In my first communication to you since becoming Chairman I not
only want to cover the financial results for the six month period
ending 30 June 2015, but to share my first impressions of the
Company, the challenges ahead, articulate the real opportunity that
exists and that attracted me to the business in the first
place.
My initial feeling is that Belgravium's structure is overly
complex and disparate and that its strategy requires greater
coherence. On a more positive note I have been struck by the high
quality of the Company's customer base. The people within the
business I have found to be professional, diligent and committed to
what we do and to ensuring that our customers receive very high
service levels. At all levels employees have told me clearly that
there is a real mandate for change. It is also clear the Company
has a strong cash generative ability and maintains a conservative
balance sheet.
These factors give a solid foundation to build from. However,
Belgravium can only thrive if it is structured in the right way,
its product and services are competitive, it has a sustainable cost
base and, at all levels, management and staff believe we are
heading in the right direction. I believe there is much that can be
done in this regard which will better shape Belgravium for the
future and that will create a more secure platform for profitable
future growth.
The immediate areas of focus are;
-- reviewing our costs which are too high;
-- improving our products and services which would benefit from further investment; and
-- simplifying our organisation which is overly complex and inefficient.
I am pleased to report that significant progress is already
underway.
Our plan is to reduce the cost base by approximately GBP500,000
on an annualized basis and make the business more effective. We are
eliminating duplication where it exists. This means we can operate
with fewer people and from a lower cost base. Controls and the flow
of information are being improved and the business is being moved
to a standard reporting system.
We need to improve our commercial capability and accelerate the
development of a newer generation of products and services. Only
then can we drive real organic revenue growth. This investment is
now being made, although it will take a while for the returns to
flow through into our financial results.
These are some of the first steps as we begin to rebuild the
confidence of our shareholders, our customers, our partners and our
employees.
Results
Revenue in the six months ended 30 June 2015 saw a decline to
GBP4,431,000 (six months ended 30 June 2014: GBP4,568,000). This
decline is due to a general flatness in the market and a specific
internal issue caused by the distraction of integrating the
recently acquired AFS business, which resulted in a loss of sales
momentum at Feedback Data.
Exceptional charges relating to the Group's restructuring
programme have further impacted the financial results. In the six
months ended 30 June 2015 an exceptional charge of GBP95,000 was
taken, the largest items of which relates to the restructuring of
the board. The company is reporting a loss for the six months ended
30 June 2015 of GBP 5,000 (six months ended 30 June 2014:
GBP223,000 profit).
Adjusted profits after tax (which exclude restructuring costs,
compensation for loss of office, payments and other non-recurring
costs) for the six months ended 30 June 2015 were GBP 90,000 (six
months ended 30 June 2014: GBP223,000 profit).
The adjusted earnings per share from continuing operations
decreased to 0.09p (six months ended 30 June 2014: 0.22p).
Taxation continues to be positive for the Group; the company
received a tax credit of GBP45,000 for the six months ended 30 June
2015 (six months ended 30 June 2014: GBP9,000).
The cash balance declined to GBP414,000 at 30 June 2015 (30 June
2014: GBP1,409,000). The prior year cash position, as mentioned in
last years' report, was flattered by a substantial pre-payment from
one customer. The Company also paid GBP500,000 to acquire Access
Fire and Security Limited during the period.
As the Board has previously indicated there will be no interim
dividend this year (2014: nil).
Current Outlook and Trading
After a review of current trading I expect that although at a
trading level the Group will be profitable for the year as a whole,
this result will be below the current market expectations.
Additionally the restructuring programme, which is now underway
will mean that the full year results will include substantial
exceptional costs, this will result in the group making a loss
overall.
This year will therefore be a year of transformation. As we move
into next year we will be moving out of this current period of
consolidation and restructuring. Next year and subsequent years
will benefit from a much lower cost base, coherent structure and a
new energy.
Acceleration of our product and service development should
enable us to drive revenue growth and rebuild sales momentum during
2016.
People
Competition in our markets is an on-going factor; it is made
easier due to the real commitment, quality and technical expertise
of our staff giving us an advantage. They continue to deliver a
high level of service to our customers. I cannot thank them enough
- as I mentioned earlier it is one of the key reasons I joined the
business.
Conclusion
To conclude, although financial results in the short term may be
disappointing, the changes that are now being made are essential to
the future prosperity of the business. In a turnaround situation it
is always difficult to predict the actual point when the benefits
will become visible, but change is happening. We are investing in
our future and have not been afraid to sacrifice some of the
present to do so.
This is the start of the journey. I look forward to helping to
build a profitable and successful Belgravium, one that is capable
of exploiting the opportunities as they arise.
Many thanks for your patience and support; it is greatly
appreciated.
Consolidated income statement
for the six months ended
30 June 2015
6 months 6 months
to to
30 June 30 June
2015 2014
Notes Total Total
(Unaudited) (Unaudited)
GBP'000 GBP'000
Revenue 4,431 4,568
-------------- --------------
Operating profit before
exceptional items 46 215
Exceptional items 2 (95) -
-------------- --------------
Operating (loss)/profit (49) 215
Finance expense (1) (1)
-------------- --------------
(Loss)/profit before income
tax (50) 214
Income tax credit 45 9
-------------- --------------
(Loss)/profit for the period
attributable to equity shareholders (5) 223
-------------- --------------
Basic (loss)/earnings per
ordinary share (pence) 2 0.00 0.22
-------------- --------------
Adjusted earnings per ordinary
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share (pence) 2 0.09 0.22
-------------- --------------
Consolidated statement of changes
in equity
for the six months ended 30 June
2015
Share Share Capital Profit Total
capital premium redemption and loss
account reserve account
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GBP'000 GBP'000 GBP'000 (Unaudited) GBP'000
GBP'000
At 30 June 2014 5,047 2,932 2,100 1,292 11,371
Profit for the period - - - 286 286
At 31 December 2014 5,047 2,932 2,100 1,578 11,657
Loss for the period - - - (5) (5)
At 30 June 2015 5,047 2,932 2,100 1,573 11,652
------------- ------------- ------------- ------------- -------------
Consolidated balance
sheet
as at 30 June 2015
As at As at As at
30 June 30 June 31 December
2015 2014 (Unaudited) 2014 (Audited)
(Unaudited) GBP'000 GBP'000
GBP'000
Non-current assets
Intangible assets
Goodwill 9,824 9,495 9,824
Development expenditure 776 616 716
Property, plant and equipment 189 195 217
Deferred income tax assets 67 66 67
10,856 10,372 10,824
------------- ------------------- -----------------
Current assets
Inventories 1,500 1,633 1,435
Trade and other receivables 2,807 2,325 3,177
Current income tax recoverable 124 - 103
Cash and cash equivalents 414 1,409 731
------------- ------------------- -----------------
4,845 5,367 5,446
------------- ------------------- -----------------
Total assets 15,701 15,739 16,270
------------- ------------------- -----------------
Current liabilities
Trade and other payables 3,656 3,629 4,027
Borrowings 15 14 18
Short term provisions - 7 -
------------- ------------------- -----------------
3,671 3,650 4,045
------------- ------------------- -----------------
Non current liabilities
Deferred income tax liabilities 87 - 75
Deferred income 291 702 480
Borrowings - 16 13
------------- ------------------- -----------------
Total liabilities 4,049 4,368 4,613
------------- ------------------- -----------------
Capital and reserves
attributable to owners
of the parent
Share capital 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 1,573 1,292 1,578
------------- ------------------- -----------------
Total equity 11,652 11,371 11,657
------------- ------------------- -----------------
Total equity and liabilities 15,701 15,739 16,270
------------- ------------------- -----------------
Consolidated cash flow statement
For six months to 30 June 2015
6 months 6 months
to to
30 June 30 June
2015 2014 (Unaudited)
GBP'000
(Unaudited)
GBP'000
Cash flows from operating activities
Operating profit (49) 215
Depreciation 57 63
Amortisation 163 144
Movement in:
Inventories (65) 141
Trade and other receivables 370 356
Trade and other payables (560) 619
-------------
Cash (used in)/generated from operations (84) 1,538
Interest paid (1) (1)
Corporation tax received 36 9
-------------
Net cash (used in)/generated from operating
activities (49) 1,546
Cash flows from investing activities
Purchase of intangible assets (223) (204)
Purchase of property, plant and equipment (29) (45)
------------- -------------------
Net cash used in investing activities (252) (249)
------------- -------------------
Cash flows from financing activities
Repayment of finance lease contracts (16) (6)
Dividends paid to company's ordinary
shareholders - (101)
-------------
Net cash used in financing activities (16) (107)
------------- -------------------
Net (decrease)/ increase in cash and
cash equivalents (317) 1,190
Cash, cash equivalents and bank overdrafts
at the beginning of the period 731 219
------------- -------------------
Cash, cash equivalents and bank overdrafts
at the end of the period 414 1,409
------------- -------------------
Notes to the interim
report
For the six months to
30 June 2015
1. This financial information comprises the condensed
consolidated interim balance sheet as at 30 June 2015
and 30 June 2014 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'). Belgravium
Technologies plc is listed on the Alternative Investment
Market. This financial information for the half year
ended 30 June 2015 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 21 September 2015.
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 2014 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.
The audited accounts for the year ended 31 December
2014 upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.
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