TIDMBVM
RNS Number : 4526G
Belgravium Technologies PLC
04 March 2015
Belgravium Technologies plc
Preliminary results for the
year ended 31 December 2014
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 final results for the year ended 31 December 2014.
Key Financials:
31 December 2014 31 December 2013
-- Revenues GBP9,408,000 GBP8,425,000
-- Profit after tax GBP509,000 GBP219,000
-- Basic Earnings per share 0.50p 0.22p
-- Cash and cash equivalents GBP731,000 GBP219,000
-- EBITDA GBP915,000 GBP451,000
Commenting today, John Kembery, Chairman of Belgravium,
said:
"2014 was a much improved year with increased revenue and
profits. The Group has made continued progress in extending its
activities and offerings to cater for a wider and more discerning
market. The Board believes that further progress will be achieved
in the current year."
For further information please contact:
Belgravium Technologies
Plc John Kembery: 07770 731021
Mark Hardy: 01274 741860
W H Ireland - Nominated Mike Coe/Ed 0117 945
Adviser Allsopp 3472
WH Ireland - Investor 0113 394
Relations Jessica Metcalf: 6623
Information on Belgravium Technologies plc can be seen at:
www.belgravium-technologies.com
CHAIRMAN'S STATEMENT 2014
RESULTS
Sustained sales effort brought good results in the fourth
quarter of 2014 enabling the Company to finish the year with
revenues 12% higher than prior year with consequent and significant
improvement in profits.
Revenues for the year were GBP9,408,000 compared to GBP8,425,000
in 2013 and were enhanced by the first full year contribution from
Feedback Data. Profit after tax was GBP509,000 compared to
GBP219,000 in the previous year. Exceptional costs of GBP27,000
were incurred relating to the acquisition of Access Fire &
Security Limited ("AFS") which was completed on 31 December
2014.
As in the previous year, continued investment in research and
development meant that there was a tax credit of GBP34,000
(GBP94,000 in 2013). The resulting profit for the year was
GBP509,000, more than double the 2013 result.
EBITDA increased to GBP915,000 compared to GBP451,000 in 2013
and basic earnings per share were 0.50p per ordinary share compared
to 0.22p in 2013.
Overall a much improved result.
BALANCE SHEET
The Group's balance sheet remains strong and debt free. At the
year end, cash and cash equivalents totalled GBP731,000 compared to
GBP219,000 at the end of 2013. This is particularly pleasing since
the acquisition of AFS, which was for a net cash consideration of
approximately GBP300,000 was financed from existing cash
resources.
DIVIDEND
The Board has decided not to recommend the payment of a final
dividend for the year. It has taken this decision in order to
conserve cash for a potential acquisition that has been identified.
Negotiations are still at an early stage but the Board currently
anticipates that if the acquisition is concluded, it will be
financed from the Company's existing cash resources and bank debt.
If the acquisition does not proceed, the Board will consider paying
a dividend following the announcement of the interim results in
September.
STRATEGY
The Group designs, installs and maintains software applications
and solutions for the airline, rail, retail and logistics
industries. A major part of our strategy is to provide operational
solutions that create a continuing long-term relationship with the
customer and repeat revenues through software licenses and managed
service maintenance agreements. Traditionally these solutions were
based upon our own specialised hardware. Whilst there is still a
need for the rugged industrial terminal, some customers now want
the flexibility to run our software on multiple hardware platforms
and operating systems, such as tablets and smart phones (utilising
Apple iOS and Android operating systems). Meeting this requirement
has been a major part of our development plan and excellent
progress has been made during the year.
CHAIRMAN'S STATEMENT 2014 (continued)
DEVELOPMENT
Our mobile retailing software can now run on all three major
operating platforms, Windows, Apple iOS and Android whereas
previously it could only work with Windows. This development has
now been extended to our Logistics suite of software applications
in the proof of delivery arena and can now also work on whatever
platform the customer specifies, typically Windows and Android.
This open platform approach will allow access to a wider range of
customers. Hardware development continues with the upgrade and
improvement of both the Hawk and Boston mobile devices,
incorporating better processor technology with improved power and
importantly, a lower overall production cost. The new Vienna truck
mounted terminal has been widely acclaimed by customers,
particularly in third party logistics operations.
OPERATIONS
Good progress has been made in the mobile retail market. As well
as new product developments, we have secured a number of notable
contracts, including First Great Western and Leo Express (Czech
Republic). These two are particularly significant contracts as they
use our mobile EPOS solution in retail sales onboard trains, where
traditionally we have been dominant in the airline industry. These
rail contracts, along with new airline orders secured in 2014,
clearly demonstrate how our restructured 'mobile retail' sales team
can employ skills and products tried and tested in the airline
market for use in the rail arena.
A number of pilot systems have been delivered in to the
transport sector and are progressing well. One such scheme, which
could be deployed on some 650 vehicles, is expected to commence
during 2015. Feedback Data, acquired in May 2013, continues to
perform well, consolidating its position as a leading supplier of
access control and workforce data capture solutions.
ACQUISITIONS
At the end of the year the Group completed its purchase of AFS.
This was the first stage of a plan to build on the success of the
Feedback Data purchase. AFS has been merged into Feedback Data and
strengthens the company's position in additional market areas,
namely fire security systems and CCTV solution, broadening the
product range and customer base. This will allow Feedback Data to
further develop its geographic reach and improve its offering to
new and existing customers.
One of Belgravium's principal strategies has been growth by
acquisition. We are delighted by the acquisition of Feedback Data
and more recently AFS, and we shall continue to seek further
acquisitions.
CHAIRMAN'S STATEMENT 2014 (continued)
OUTLOOK
2014 was a much improved year with increased revenue and
profits. The Group has made continued progress in extending its
activities and offerings to cater for a wider and more discerning
market. The Board believes that further progress will be achieved
in the current year.
J P Kembery
Executive Chairman
3 March 2015
Audited consolidated income statement for the year ended 31
December 2014
2014 2013
GBP'000 GBP'000
Revenue 9,408 8,425
Cost of sales (4,680) (4,249)
-------------------------------------------------------------------------- --------- ---------
Gross profit 4,728 4,176
Distribution costs (81) (122)
Administration expenses (4,170) (3,932)
-------------------------------------------------------------------------- --------- ---------
Operating profit before exceptional items 504 333
Exceptional costs included in administration expenses (27) (211)
-------------------------------------------------------------------------- --------- ---------
Operating profit 477 122
Finance income 1 7
Finance expense (3) (4)
-------------------------------------------------------------------------- --------- ---------
Profit before income tax 475 125
Income tax credit 34 94
-------------------------------------------------------------------------- --------- ---------
Profit for the year attributable to the owners of the parent 509 219
--------- ---------
Basic earnings per ordinary share (pence) attributable to owners of the parent during the
year:
2014 2013
0.50p 0.22p
Audited consolidated statement of changes in equity for the year
ended 31 December 2014
Share Capital Profit
Share premium redemption and loss Total
capital account reserve account equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- --------- --------- ------------ ---------- --------
Balance at 1
January 2013 5,047 2,932 2,100 1,052 11,131
Comprehensive
income
Profit for the
year and total
comprehensive
income - - - 219 219
Dividend (note
13) - - - (101) (101)
Balance at 31
December 2013 5,047 2,932 2,100 1,170 11,249
Comprehensive
income
Profit for the
year and total
comprehensive
income - - - 509 509
Dividend (note
13) - - - (101) (101)
Balance at 31
December 2014 5,047 2,932 2,100 1,578 11,657
----------------- --------- --------- ------------ ---------- --------
Audited consolidated balance sheet as at 31 December 2014
2014 2013
GBP'000 GBP'000
----------------------------------------------------------- -------- -------------
Non-current assets
Goodwill 9,824 9,495
Development expenditure 716 556
------------------------------------------------------------ -------- -------------
Total intangible assets 10,540 10,051
Property, plant and equipment 217 213
Deferred income tax assets 67 66
------------------------------------------------------------ -------- -------------
10,824 10,330
----------------------------------------------------------- -------- -------------
Current assets
Inventories 1,435 1,774
Trade and other receivables 3,177 2,681
Current income tax recoverable 103 -
Cash and cash equivalents 731 219
------------------------------------------------------------ -------- -------------
5,446 4,674
----------------------------------------------------------- -------- -------------
Total assets 16,270 15,004
------------------------------------------------------------ -------- -------------
Current liabilities
Trade and other payables 4,027 2,962
Borrowings 18 13
Short term provisions - 7
4,045 2,982
----------------------------------------------------------- -------- -------------
Non-current liabilities
----------------------------------------------------------- -------- -------------
Deferred income tax liabilities 75 -
Deferred income 480 750
Borrowings 13 23
------------------------------------------------------------ -------- -------------
Total liabilities 4,613 3,755
------------------------------------------------------------ -------- -------------
Capital and reserves attributable to owners of the parent
Share capital 5,047 5,047
Share premium account 2,932 2,932
Capital redemption reserve 2,100 2,100
Profit and loss account 1,578 1,170
Total equity 11,657 11,249
------------------------------------------------------------ -------- -------------
Total equity and liabilities 16,270 15,004
------------------------------------------------------------ -------- -------------
Audited consolidated cash flow statement for the year ended 31
December 2014
2014 2013
GBP'000 GBP'000
--------------------------------------------------------------- --------- ---------
Cash flows from operating activities
Operating profit 477 122
Depreciation 122 120
Amortisation 316 209
Movement in:
Provisions (7) (15)
Inventories 361 (197)
Trade and other receivables (431) (221)
Trade and other payables 653 (426)
---------------------------------------------------------------- --------- ---------
Cash generated from / (used in) operations 1,491 (408)
Interest received 1 7
Interest paid (3) (4)
Corporation tax paid 9 -
--------------------------------------------------------------- --------- ---------
Net cash generated from / (used in) operating activities 1,498 (405)
---------------------------------------------------------------- --------- ---------
Cash flows from investing activities
Acquisition of subsidiary undertakings (net of cash acquired) (296) (232)
Amount paid to clear inter-company balances - (368)
Purchase of intangible assets (476) (220)
Purchase of property, plant and equipment (100) (57)
---------------------------------------------------------------- --------- ---------
Net cash used in investing activities (872) (877)
---------------------------------------------------------------- --------- ---------
Cash flows from financing activities
Repayments of finance lease contracts (13) (12)
Equity dividends paid to shareholders (101) (101)
---------------------------------------------------------------- --------- ---------
Net cash used in financing activities (114) (113)
---------------------------------------------------------------- --------- ---------
Net increase / (decrease) in cash and cash equivalents 512 (1,395)
Cash and cash equivalents at start of the year 219 1,614
---------------------------------------------------------------- --------- ---------
Cash and cash equivalents at end of the year 731 219
---------------------------------------------------------------- --------- ---------
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 AIM. 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 2014 or 31 December 2013. The annual report and financial
statements for the year ended 31 December 2014 were approved by the
Board of Directors on 3 March 2015 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 2013 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.
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 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 funds
2014 2013
GBP'000 GBP'000
------------------------------------------------------ --------- ---------
Reconciliation of net funds
Net increase/(decrease) in cash and cash equivalents 512 (1,395)
Net change in bank loans and finance leases 5 12
Movement in net funds 517 (1,383)
Net funds at beginning of year 183 1,566
Net funds at end of year 700 183
------------------------------------------------------- --------- ---------
5. Earnings per share
2014 2013
----------------------------------- ------ ------
Basic earnings per ordinary share 0.50p 0.22p
----------------------------------- ------ ------
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 adjusted earnings per share, the earnings are adjusted for
exceptional items.
Reconciliations of the earnings and weighted average number of
shares used in the calculation are set out below:
2014 2013
Earnings Weighted average number of Earnings Weighted average number of
GBP'000 shares (in thousands) GBP'000 shares (in thousands)
-------------------------------- --------- ------------------------------ --------- ------------------------------
Basic EPS
Earnings attributable to owners
of the parent 509 100,937 219 100,937
Exceptional items comprising of the
following:
Restructuring costs - 148
Deal costs 27 63
-------------------------------- --------- ---------
27 211
-------------------------------- --------- ---------
Exceptional costs totalling GBP27,000 (2013: GBP211,000) were incurred. These comprised of
the acquisition costs in the current year relating to Access Fire & Security Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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