Belgravium Technologies issued a profits warning this morning and announced plans to cut costs by £500,000 a year to help turn around the handheld computer firm.
The new chairman Ian Martin said: “After a review of current trading I expect that although at a trading level the group will be profitable for the year as a whole, this result will be below the current market expectations.
“Additionally the restructuring programme, which is now underway will mean that the full year results will include substantial exceptional costs, this will result in the group making a loss overall.”
Revenue in the six months ending June 30 fell nearly three per cent to £4.43m, which the Bradford company blamed on a general flatness in the market and the distraction of integrating the recently acquired AFS busines.
The group took an exceptional charge of £95,000 relating to the restructuring programme leading to a pre-tax loss of £5,000 for the period.
Belgravium designs, installs and maintains software applications and solutions for the airline, rail, retail and logistics industries.
Mr Martin, who joined as a non-executive director in May, said: “This year will be a year of transformation for Belgravium.
“A restructuring programme is underway which will see the group benefit next year and in subsequent years from a much lower cost base, coherent structure and new energy.”