Final Results

Belgravium Technologies Plc

(BVM:AIM)

Belgravium Technologies plc

Preliminary Results for the Twelve Months ended 31 December 2009

The Board of Belgravium Technologies plc ('Belgravium' or 'the Group'), designers and suppliers of mobile data capture systems, is pleased to announce preliminary results for the twelve months ended 31 December 2009.

Highlights:

o Revenue maintained at £8,286,000 (2008: £8,330,000)

o Profit before tax increased to £405,000 (2008: £398,000)

o Cash generation of £244,000 reduces net debt position to £1,424,000

o EPS increased to 0.43p (2008: 0.39p)

o Market share maintained in uncertain conditions

Commenting on the year end results, John Kembery, Chairman of Belgravium, said:

"I am pleased to report that Belgravium has met its strategic business objectives whilst delivering a profit in line with market expectations and reduced net debt. This is a particularly pleasing outcome given the worldwide loss of financial confidence which has affected all of our markets throughout 2009".

For further information please contact:

Belgravium Technologies Plc

John Kembery 07770 731 021

WH Ireland

Eric Burns 07910 900 950

CHAIRMAN'S STATEMENT 2009

Results

I am pleased to report that Belgravium has met its strategic business objectives whilst delivering a profit in line with market expectations and reduced net debt. This is a particularly positive outcome given the worldwide loss of financial confidence which has affected all of our markets throughout 2009.

Despite a marginal fall in revenues from £8,330,000 to £8,286,000, the Group made a profit before tax of £405,000 in the twelve months ended 31 December 2009, an improvement on the £398,000 achieved in the previous year. Although sales were strong in the last quarter of 2009, this is usually our best quarter and the similarity of first and second half sales shows that the market has not yet improved.

Basic earnings per share increased from 0.39p per ordinary share in 2008 to 0.43p per share in 2009.

Cash flow continued to be positive and net debt reduced by £244,000 in the year.

The contraction in our market and the operational gearing inherent within the Belgravium business model is very obvious when these results are compared with 2007 when the Group achieved revenues of £10,637,000 and made a profit before tax of over £2 million. A sustained improvement in market conditions would quickly enable us to return to better profits.

Operational Review

On maintained revenues, gross profit fell by 6.7% in 2009 compared to 2008. This was caused by pressure on hardware prices mitigated to some extent by our strategy of placing greater emphasis on our software and complete solutions. There was a compensating drop in administration costs of 6.9%, following a cost saving programme which ran throughout the year. All costs not considered strategically important were strictly controlled and the success of this programme contributed significantly to the maintenance of profits. In addition, productivity has been improved but numbers employed, particularly in the technical departments, will have to be increased once sales activity starts to increase.

The new "Boston" hand-held terminal, announced in the early part of the year, won general acclaim for its rugged functionality. Equipped with a long range barcode scanner and integral camera, this product was important in winning a major contract for the location, tracking and condition of palletised goods. This project offered considerable operational advantages and should lead to further business.

In the early part of the year, we signed an international supply agreement with SHV Group to supply LPG delivery systems in each of their many countries of operation. In the last quarter we supplied a major contract for SHV's distribution company in Italy, based upon our unique products for the petrochemical market. Several more such systems have orders pending in other countries with authorisation awaited from local management.

We have made progress with other petrochemical companies on several promising contracts across Europe and some smaller outlets in the UK, incorporating continual refinement and improvement of our purpose built products. There is a lot of opportunity in this sector but the selling process is protracted.

Our distributor in the USA, a software house specialising in petrochemical systems, had a better 2009 compared with 2008 but has still not recovered to the levels enjoyed in previous years.

Group activity in mobile retailing has been historically targeted at planes and trains. Airlines, in particular, have been under serious pressure in the past two years and have sought ways of increasing their margins, which has brought more interest in in-flight retailing services. Whilst we have a long-established presence in this market, we have, until recently, been unable to supply all the functions that the operators now require. As a result of strenuous developments in hardware and software, some involving specialised partners, we now have the most complete product range in the business. This created a great deal of fresh interest as the year concluded, with excellent prospects for 2010.

In the second half of 2009, our product development plans tended to concentrate on refinement and improvement of existing hardware, through listening to our customers and responding to their requests for added functionality. There have also been some attractive improvements in software which contributed to the greater appeal of our range. This strategy will continue in 2010, as our current product range is comprehensive and refinement is therefore more appropriate.

Balance Sheet

Belgravium has a sound balance sheet and has always been cash generative. With recent lower levels of profitability, we have felt it necessary to use all our available cash to reduce bank borrowings. As the year closed, total net debt was £1,424,000, having reduced by £538,000 in the past two years, an excellent achievement in the current economic climate.. The objective must be to further reduce debt and as a result we are not recommending a final dividend for the year. The Directors recognise that this is important to many shareholders and remain committed to restoring dividend payments as soon as conditions allow.

The Market

Belgravium manufactures and installs complete systems, incorporating both hardware and software, for real time data capture in the logistics, petrochemical and mobile retailing markets. There is a very real need for such systems, either to improve operating costs, efficiency or turnover. In addition, there are plenty of new prospects and opportunities to expand as we add new functions and capability to our systems. We rarely have to convince operating management of these advantages but it has proved increasingly difficult, in the current economic climate, to gain financial authorisation for what are usually seen as capital projects.

This is currently the nature of our market; slow moving and frustrating. Margins are still healthy, and we believe that revenue growth will be restored once confidence returns.

Strategy

It is Belgravium's overall objective to grow revenues. This will automatically increase profits and cash generation, given our operational leverage. In the current market we have devised a strategy which was explained in the 2009 Interim Report, which we continue to pursue. It is:

1. Persistent and determined sales focus at all levels. Everyone is a salesman.

2. Making sure that all products are fit for purpose and fit the customer's needs.

3. Supplying the complete solution, with increasing elements of repeat revenue.

4. Controlling costs with a focus on cash management.

5. Where we do not have expertise in a chosen sector, seek a strategic relationship with a partner who does.

Employees

It is not easy to deliver profits in these conditions and this shows in the results of many companies. That Belgravium has managed to fulfil many of its strategic objectives whilst reducing its costs, has required great application and flexibility by staff at all levels. This has been given without question and is a great tribute to the professionalism of our team.

As previously announced, from the 1st January 2010 Mike Unwin joined the Board as Financial Director and Chris Phillips has taken over as Company Secretary. After nine years of valuable service as a Non-executive Director, Stephen Day has announced that he will not seek re-election at the next AGM.

Outlook

During 2009 we have maintained profitability and made significant progress against our strategic objectives whilst continuing to reduce our net debt position. As we enter 2010 there are several exciting prospects which could deliver improved results but the uncertainty as to the timing of when they will mature, remains.

J P Kembery

Executive Chairman

2 March 2010

Audited consolidated income statement as at 31 December 2009

Audited consolidated statement of changes in equity for the year ended 31 December 2009

Audited consolidated balance sheet as at 31 December 2009

Audited consolidated cash flow statement for the year ended 31 December 2009

1. General Information

Belgravium Technologies plc is a public limited company incorporated and domiciled in the UK and listed on the Alternative Investment Market. Its registered office is 151 Vincent Street, Glasgow, G2 5NJ.

The consolidated financial statements were authorised for issue in accordance with a resolution of the Directors on 3 March 2010.

2. Basis of preparation

The financial information set out in this document does not constitute the Group's financial statements for the year ended 31 December 2009 or 31 December 2008. The annual report and financial statements for the year ended 31 December 2009 were approved by the Board of Directors on 2 March 2010 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 2009 was unqualified and did not contain a statement under section 498 of the Companies Act 2006. Financial statements for the year ended 31 December 2008 have been delivered to the Registrar of Companies. The auditors' report on the financial statements for the year ended 31 December 2008 was unqualified and did not contain a statement under section 237 of the Companies Act 1985.

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.

The accounting policies set out below represent an extract of the policies set out in the consolidated financial statements. 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 its accounting policy. 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 liabilities

5. Audited earnings per ordinary 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: