Belgravium sees customers starting to spend again as sales grow

The Bradford-based group, which makes and sells hand-held computers and software for companies to check on their stock, was hit by major customers slashing spending during the downturn.

Belgravium said sales were stronger in the final quarter of 2010, and have continued into 2011, “giving rise to prospects of a year of further improvement”.

Chairman John Kembery said: “We enter the new year with a better order book than for the past three years having made real progress against our key strategic objectives. There is undoubtedly increased financial confidence amongst our customers and the need for our products has been accentuated by three years of restraint in capital expenditure.” Revenues fell slightly to £8.2m in 2010 from £8.3m a year earlier. Profits before tax increased by seven per cent to £432,000. Belgravium said its net debt has been slashed from £1.42m to £264,000.

The company did not quantify its order book, but said it is better than the past three years. In December it won major contracts with airlines Thomas Cook and Monarch and said several more big orders are pending.

Belgravium said it is not resuming dividends because it expects looming sales growth to increase its working capital needs.

“Belgravium is on the cusp of recovery,” said analyst Eric Burns at house brokers WH Ireland. “The order book going into the new year is in better shape than for the past three years driven by new partnerships and pent-up demand from customers finally replacing equipment.”