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 £9,408,000 compared to £8,425,000 in 2013 and were enhanced by the first full year contribution from Feedback Data. Profit after tax was £509,000 compared to £219,000 in the previous year. Exceptional costs of £27,000 were incurred relating to the acquisition of Access Fire & Security Limited (“AFS”) which was completed on 31 December 2014.

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
Revenues £9,408,000
Profit after tax £509,000
Basic Earnings per share 0.50p
Cash and cash equivalents £731,000
EBITDA £915,000 

31 December 2013
Revenues £8,425,000
Profit after tax £219,000
Basic Earnings per share 0.22p
Cash and cash equivalents £219,000
EBITDA £451,000

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:
Mark Hardy:
07770 731021
01274 741860

W H Ireland – Nominated Adviser Mike Coe/Ed Allsopp 0117 945 3472
WH Ireland – Investor Relations Jessica Metcalf: 0113 394 6623

Information on Belgravium Technologies plc can be seen at: www.belgravium-technologies.com

As in the previous year, continued investment in research and development meant that there was a tax credit of £34,000 (£94,000 in 2013). The resulting profit for the year was £509,000, more than double the 2013 result. EBITDA increased to £915,000 compared to £451,000 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 £731,000 compared to £219,000 at the end of 2013. This is particularly pleasing since the acquisition of AFS, which was for a net cash consideration of approximately £300,000 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. 

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.

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