Half Yearly Report

Belgravium Technologies plc

Interim Results for the Six Months ended 30 June 2010

The Board of Belgravium Technologies plc ('Belgravium' or 'the Group'), designers and manufacturers of real-time data capture systems, is pleased to announce Interim results for the six months ended 30 June 2010.

Key Financials:

Highlights:

·; Progress made on strategy for restoration of profit growth

·; Improvement in sales expected from second half onwards

·; Contract worth £3m over next 30 months will benefit full year outcome

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

"The first half saw a continuation of previously announced trends in our business, namely a subdued level of order intake as customers' financial concerns weighed on capital expenditure decisions. We nonetheless believe that our strategy for managing the business through the downturn has proved successful and look forward to an improvement in sales from the second half".

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KPMG Corporate Finance, a division of KPMG LLP which is authorised and regulated by the Financial Services Authority for investment business activities, is acting for the Company as nominated adviser in relation to the matters set out in this announcement and is not acting for any other person in relation to these matters. KPMG Corporate Finance will not be responsible to anyone other than Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement.

Chairman's Statement

Interim 2010

RESULTS

Delays in confirming contracts due to financial uncertainty in the market place continued to be a problem in the first half of 2010, with the result that some anticipated orders did not mature until the period closed. Sales for the first half of 2010 were down 15% at £3,657,000 compared to £4,286,000 in the first half of 2009. Whilst margins were improved, profit before tax was affected by the low sales falling to £26,000 compared to £140,000 in 2009.

Basic earnings per share were 0.03p per share compared to 0.11p per share in 2009.

Orders gained at the end of the period however, mean that sales and profits should be restored in the second half and that Belgravium is well positioned to achieve its strategic objectives.

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. Such systems improve efficiency and operating costs and their need is well established and accepted by our customers. Since 2007, however, financial constraints have produced a marked reluctance to commit to capital projects. The process of converting an enquiry from operational management into a financially authorised contract used to take weeks and now takes months, sometimes longer. Upgrades and renewals are equally difficult and whilst there is still an underlying international demand, the market has been frustratingly slow and difficult to forecast. Belgravium's reputation for quality products remains high whilst many competitors have reduced their offering to meet financial constraints.

OPERATIONAL REVIEW

Challenging market conditions remained in force for the majority of the first half of 2010 but late in the period, we gained a major contract for the supply of petrochemical systems in Europe which we anticipate will be worth £3 million sales of hardware and software over the next two and a half years. Sufficient of this order is to be delivered in the second half of 2010 to restore sales and profits for the year and will be further supplemented by some smaller orders received recently. Whilst the logistics market remains difficult there has been a lot of activity in mobile retailing and strategic advances in the area should generate some good opportunities over the next year. It would be dangerous to conclude that we have reached the expected turning point in the market but it would appear that our strategy to deal with the recession is working and that we can now anticipate sustained improvements in sales.

STRATEGY

A five point strategy for restoration of profit growth was outlined in the 2009 annual report. We have made progress as follows:

1. Sales focus.

We have maintained a determined and persistent sales presence. We have pursued new sectors, widened our product offering and never lost sight of the objective. It has been hard work but we have won new orders and customers.

2. Ensuring that products are fit for purpose and the customers stated requirement.

This has been the main thrust of our development effort over the past year. Since the 'Boston' was launched we have sought to develop and improve existing products rather than bring in new designs for which there was no immediate demand.

3. Supply the complete solution with increasing repeat revenue.

This policy remains in force with the aim of improving our margins and the visibility of earnings through repeat business.

4. Controlling costs.

Numbers employed have fallen slightly through natural wastage. Particularly in the technical area, this has produced operational strain and must be reviewed as and when sales pick up.

5. Seek strategic partnerships in areas where we lack specific expertise:

This has proved particularly important in mobile retailing where airlines have been seeking an in-flight "chip and pin" device. It is a very specialised area in which we have developed a relationship with Ingenico, Europe's leading chip and pin hardware suppliers. Together with our own new software products and arrangements to reduce the initial capital cost of a system, we now have products to re-awaken interest in this strained market. This policy should bring in some important new contracts over the next year.

BALANCE SHEET

Despite the reduced turnover, cash generation has remained strong and we have continued to pay off the Bank term loan as quickly as possible. For this reason we are unable to pay an interim dividend in 2010 but it remains the Board's policy to restore dividends as soon as conditions permit.

OUTLOOK

There is still no general restoration of the international market for Belgravium's products but sales won towards the end of the first half of the year mean that prospects are better for the year as a whole. It is expected that this outlook will be sustained into 2011.

Over the longer term, the identification of suitable acquisition opportunities remains an important part of our growth strategy. We seek primarily software businesses which would increase our sectoral coverage gaining entry into new markets. Since such businesses are notoriously difficult to find, we have re-opened the search to be ready when conditions allow.