21st Sep 2015 07:57
LONDON (Alliance News) - Mobile data products and services provider Belgravium Technologies PLC on Monday reported a swing to a pretax loss for the first half of 2015 as it undertakes restructuring, which it said will benefit it next year and in subsequent years.
Belgravium said it alos expects to make a loss for its full year, as a result of "substantial exceptional costs" related to this restructuring.
For the half year to end-June Belgravium reported a pretax loss of GBP50,000, swung from a pretax profit of GBP214,000 a year before, as revenue fell to GBP4.4 million from GBP4.6 million, and it recorded exceptional restructuring costs of GBP95,000.
It attributed the small decline in revenue to "general flatness" in the market, and the distraction of integrating a recently acquired business which led to a loss in sales momentum at its Feedback Data segment.
Newly appointed Chairman Ian Martin said the company is planning to reduce its cost base by around GBP500,000 on an annualized basis, saying the company needs to improve its commercial capability and accelerate the development of a newer generation of products and services in order to be able to drive organic revenue growth.
Whilst the company is now investing, it will take "a while" for the returns to flow through into the company's financial results, Martin 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," said Martin in a statement
Shares in Belgravium Technologies were down 18% at 3.39 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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