LONDON (Thomson Financial) - Belgravium Technologies Plc. reported a fall in first-half pretax profit as sales dropped versus last year, with the economic downturn impacting the group's growth strategy more heavily than originally anticipated.

For the six months ended June 30, pretax profit fell to 72,000 pounds from 1.02 million as turnover declined to 3.94 million pounds from 5.22 million a year ago. The group said it will therefore, not pay the dividend for the period.

As a result of a deterioration in the global economy experienced across many sectors, new business generation has been difficult in the first half of 2008 and the shortfall in sales has had a direct effect on profitability, the company noted.

The group, which designs and manufactures mobile computers and real-time electronic data capture systems, added that expected projects have not been lost or abandoned but customers have decided to re-examine, modify or postpone their plans leading to a series of delays.

The group said it cautiously expects a recovery at the end of 2008 and into 2009 as market conditions improve and customers reassess the value of its services, taking a longer term view.

TFN.newsdesk@thomson.com npr/slm

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