(BVM) Belgravium Technologies

Belgravium Technologies plc

Interim Results for the Six Months ended 30 June 2011

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 2011.

Key Financials:

                                                            30 June 2011              30 June 2010              

·     Turnover                                   £4,773,000                    £3,657,000

·     Profit before tax                         £321,000                       £26,000            

·     Basic earnings per share              0.24p                            0.03p

·     Net Cash/ (Debt)                        £638,000                      (£711,000)

Highlights:

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

"Belgravium has delivered a first half performance in line with expectations and orders received to date mean that the Group will have a second half which is constrained only by supply chain and production capabilities. I am also pleased to report a significant strengthening of our balance sheet which shows net cash of £638,000 versus a net debt position of £711,000 twelve months ago"

For further information please contact:

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 Belgravium 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 Belgravium for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement.

CHAIRMAN'S INTERIM STATEMENT 2011

RESULTS

Belgravium entered 2011 with a stronger order book and better prospects, than for many

years.  We have capitalised on these conditions to produce a good interim result with more to come in the second half.

Sales in the six months period ended 30 June 2011 totalled £4,773,000, a 30% improvement over the first half of 2010 (£3,657,000).  Profit before tax increased to £321,000 compared to £26,000 in 2010.  After tax, this produced earnings of £247,000 or basic earnings per ordinary share of 0.24p per share compared to 0.03p per ordinary share in the first half of 2010.

THE MARKET

The Group is a specialist in providing complete data capture systems for the logistics, petrochemical and mobile retailing markets.  There is a large international market for these products both as new systems and as replacement for older equipment.  The last three years of financial restraint has not diminished this need but meant that opportunities have been more difficult to convert into orders.  Belgravium has responded with a five point strategy aimed at helping the customer to eventually make a decision in our favour.  This began to pay off in 2010 with orders reaching into 2011 and it is pleasing to report that the momentum has continued.  Competitors do not appear to have faired so well and this should benefit the Group in the longer term, the only uncertainty being the effect of further financial problems in the Eurozone.

OPERATIONAL REVIEW

In 2010, we negotiated a contract in France worth €4 million which will run until 2012. In addition, there were two mobile retailing orders early in 2011 and a variety of smaller orders which meant that the Group was significantly busier than in prior years.  In the second quarter we gained a contract from Hermes (for delivery in the second half 2011) to replace an existing logistics system as well as a few smaller orders in the petrochemical market.  For the second half of the year we have an order for a major airline retailing system, using our hardware and software, which is scheduled to be completed before the year end. Thus, all parts of the business are now working close to full capacity in order to meet this challenging schedule of procurement, assembly and delivery.

To ensure that we capitalise on improving trends in our markets we have recruited a limited number of technical people and will continue to do so where we find staff of the right calibre and experience.

BALANCE SHEET

Cash generation has continued strongly and cash or equivalents at the period end stood out at £987,000 compared to £161,000 at the end of June 2010.  We continue to repay the term loan at a monthly rate which will make the Group free of debt by early 2012.  Allowing for the working capital requirements of the large orders in the production pipeline, we will consider paying off the loan slightly ahead of plan, so that the Group ends the year ungeared.

DIVIDEND

The Board continues to place high priority on the repayment of the term loan and managing cashflow, therefore, does not think it prudent to pay an interim dividend.  However, once the financial needs of the Group are clearer at the year end, we will consider reinstating a final dividend for the current year.

ACQUISITIONS

Our growth objectives always included acquisitions aimed at expanding geographic or sectoral coverage.  These plans have had to be shelved whilst cash was scarce and our market capitalisation low.  Now that the Group will soon be ungeared the time is right to start examining suitable acquisition prospects.  We are already examining some opportunities.

OUTLOOK

Belgravium has produced results in the first half of 2011 in line with expectations and orders received to date mean that the Group will have a second half which is constrained only by supply chain and production capabilities. Whilst we are mindful of wider economic challenges, our strategic and competitive strength gives us confidence that we are well placed to continue our steady sales and profit improvement in the longer term.