Final Results

Belgravium Technologies plc

Preliminary results for the

year ended 31 December 2011

The Board of Belgravium Technologies plc (AIM:BVM) 'Belgravium' or 'The Group'), designers and suppliers of computing solutions and services for mobile computing data capture in a wide variety of industrial sectors, is pleased to announce preliminary results for the year ended 31 December 2011.

Highlights:

Financial

- Revenues increased by 36% to £11,157,000 (2010: £8.200,000)

- Profit before tax increased by 137% to £1,024,000 (2010: £432,000)

- Proposed restoration of dividend

- Strong cash flows

- No net debt

- EPS rises to 0.87p (2010: 0.38p)

Operational

- Increasing revenues from delivering 'solutions' and managed services

- Strong sales performance including the contract won for British Airways On-Board retail system

- New products developed for launch in 2012

- Sales team to be strengthened to enable greater geographic coverage

Commenting today, John Kembery, Executive Chairman of Belgravium said: "2011 was a very good year in which we delivered a strong financial performance and made substantial progress in achieving our strategic objectives. Looking forward, although visibility on sales is always limited, we believe our market position has strengthened and that we are well placed to capture future opportunities."

More information on Belgravium Technologies plc can be seen at www.belgravium-IR.com

CHAIRMAN'S STATEMENT

Last year I said in my statement "we expect Belgravium to return to growth in 2011" and I'm delighted to say that this has proved completely accurate with the Group significantly increasing both revenue and profits year-on-year. In addition the Group's balance sheet and cash position has significantly strengthened. As a result I am delighted to report that the board now intends to restore dividend payments.

Results

Revenues in the year increased by over 36% to £11,157,000 compared to £8,200,000 last year. On this revenue, Belgravium has more than doubled pre-tax profit to £1,024,000 compared to £432,000 last year. In addition, the continuing investment in capital projects, research and development, has helped reduce the tax charge to £148,000. As a consequence basic earnings per ordinary share have risen to 0.87p which is also more than double the 0.38p per share recorded in 2010.

Whilst sales have grown by 36% in 2011, administration expenses have been managed carefully and are only 6% higher than the previous year. 

A major financial objective has been to repay the term loan. During 2011, operating activities generated £1,738,000 and so this policy has continued without limitation to capital expenditure. I am delighted to report that since the year end the term loan has been fully repaid and that the Group is now debt free. At the year end cash equivalents amounted to £1,220,000 compared with £346,000 in 2010.

Dividend

We have always indicated that once conditions improved, the Group would restore payment of dividends to ordinary shareholders. Subject to shareholders' approval at the AGM, it is the Board's intention to pay a dividend of 0.10 pence per Ordinary Share on 20 June 2012 to shareholders on the register on 25 May 2012.

OPERATIONAL REVIEW

The Group achieved a strong financial performance despite the difficult economic conditions and has made progress on a number of fronts to position itself well for the future. As has been the case for some years, customers remain reluctant to commit to what are perceived as significant capital projects but appear more willing to agree projects of a profit and loss account nature. Our success has been largely down to our ability to develop sales opportunities where we have been able to demonstrate the economic benefits of using Belgravium's complete services, which include hardware software and increasingly support services as part of a 'wrapped' solution. Often, as a result we are able to provide a solution, which gives customers better value, and added functionality, which we believe will be a continuing feature of our success.

Belgravium has continued to develop new mobile computing devices and maintains an on-going process of consulting with clients to add increasing refinements and functionality across the entire range, working hard to identify trends and keep ahead of their needs. As a result the group has developed three new products during 2011 which will be launched in 2012. These include a new version of the 'Boston', the 'Hawk' and the truck mounted 'Vienna'.

Review of sales

The Belgravium Group supplies and manages a comprehensive range of mobile computing services and solutions with a focus on the logistics, transportation and on-board retailing sectors. 

In the year, the Group actively worked alongside its strategic partners to capture a greater market share, particularly in the on-board retail sector where its system is now consistently being chosen over competing products. As a result several significant new contracts have been won in the period and there is a healthy pipeline of new prospects. Belgravium now provides a retail solution system to over 50 airlines in the world.

Notable contracts won in the period include:

Belgravium supplied a solution for Hermes, formerly Parcelnet; the UK's largest courier based home delivery company handling more than 140 million parcels per annum. Belgravium provided a complete managed service to Hermes ensuring accurate data capture and proof of delivery information at key tracking points. Belgravium supplied in excess of 600 'Atlanta' mobile terminals, with the solution installed across 23 depots in a six-week period.

A large French energy company and a customer that Belgravium has worked with for several years awarded the replacement contract to equip 1,200 vehicles with the 'Raven' mobile tablet device and associated software. This contract will continue during 2012 with a total contract value of approximately £3.3 million. This contract requires on-going sales and technical services to ensure that the customer's changing needs are met.

Belgravium, together with its strategic partner Tourvest Duty Free, won the software and hardware contract to provide an on-board, in-flight retail system for British Airways in the last quarter of 2011. The system, using our SkyPOS software, utilises around 1,900 Kestrel handsets. The whole solution, which included the training of British Airways staff and cabin crew, installation and testing, was completed within a very short time and the system is proving to be both reliable and easy to use. As a result, the Group is confident of continued growth in this market in the coming years.

All three of these contracts were won against strong competition and were eventually awarded on the greater merits of our solutions and managed services, which will ensure both further business and repeat revenues. Our focussed sales policy has produced results in 2011. To continue to capture increasing opportunities, the Board is committed to strengthening the sales team to enable greater geographic coverage. The impact of this policy will be evident in 2013 and beyond.

EMPLOYEES

The outcome of lengthy contract negotiations is often the requirement to design and install a system in a timescale which a few years ago would have been thought impossible. This situation has arisen regularly throughout 2011, quite often with last minute technical changes. As always, our staff at all levels have responded to the challenges with energy and enthusiasm. During the year we were delighted to be able to award a well deserved pay review for an understanding and loyal workforce. There is no doubt that the adverse market conditions of the recent years have produced a tested and highly confident team, well capable of coping with future challenges.

OUTLOOK

2011 was a very good year for Belgravium in which it delivered a strong financial performance and made substantial progress in achieving its commercial objectives. The Group now has a strengthened market position and is well placed to capture future opportunities as they arise and make further progress. The current year has commenced in line with expectations but as usual there is limited visibility on the level of future sales and with the general economic climate, it remains cautious at this stage as to the levels of growth achievable in the current year.

J P Kembery

Executive Chairman

6 March 2012

Audited consolidated income statement for the year ended 31 December 2011

Audited consolidated statement of changes in equity for the year ended 31 December 2011

Audited consolidated balance sheet as at 31 December 2011

Audited consolidated cash flow statement for the year ended 31 December 2011

1. General information

Belgravium Technologies plc is a public company limited by share capital incorporated and domiciled in the United Kingdom. The Company has its listing on the Alternative Investment Market. The address of its registered office is 1 George Square, Glasgow, G2 1AL.

2. Basis of preparation

The financial information set out in this document does not constitute the Group financial statements for the year ended 31 December 2011 or 31 December 2010. The annual report and financial statements for the year ended 31 December 2011 were approved by the Board of Directors on 6 March 2012 along with this preliminary announcement, but have not yet been delivered to the Registrar of Companies.

The auditors' report on the financial statements for the year ended 31 December 2011 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Financial statements for the year ended 31 December 2010 have been delivered to the Registrar of Companies. The auditors' report on the financial statements for the year ended 31 December 2010 was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

The audited consolidated financial statements from which these results are extracted have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

There have been no changes in accounting policies in the year.

3. Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(a) Estimated impairment of goodwill

The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated above. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates, both in arriving at the expected future cash flows and the application of a suitable discount rate in order to calculate the present value of these flows.

 (b) Development expenditure

The Group recognises costs incurred on development projects as an intangible asset which satisfy the requirements of IAS 38. The calculation of the costs incurred includes the percentage of time spent by certain employees on the development project. The decision whether to capitalise and how to determine the period of economic benefit of a development project requires an assessment of the commercial viability of the project and the prospect of selling the project to new or existing customers.

4. Audited reconciliation of net financial assets/(liabilities)

5. Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year.

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive ordinary shares. The dilutive ordinary shares represent the share options and warrants granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year.

Reconciliations of the earnings and weighted average number of shares used in the calculation are set out below: