Belgravium wins deal to upgrade Musgrave network

MOBILE computer group Belgravium Technologies has won a deal to upgrade a data-capture system for Irish cash and carry chain Musgrave Wholesale Partners.

The Bradford-based group was asked to extend its data-capture system across Musgrave’s entire Irish cash and carry network.

Alternative Investment Market-listed Belgravium initially installed handheld units and software for Musgrave in 2011, and will now create a real-time stock-checking system across the group’s entire network.

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The system, being rolled out during the rest of the year, uses Belgravium’s Atlanta 5000 series handheld unit, which can work with a wide range of barcodes.

Belgravium said the system allows “seamless data flows and enhanced visibility of product flows within the supply chain”.

Sales director Peter Marsh said: “We are delighted that the initial installation for Musgrave has worked so well that they have asked us to extend the solution throughout their entire operations in Ireland.

“The system, which incorporates the latest Belgravium handheld units will ensure that Musgrave stay at the leading edge of the available technology to improve their distribution and logistics operations.”

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Belgravium, headed by chairman John Kembery and managing director Mark Hardy, did not disclose the deal’s value.

The firm recently won an order worth just under 1m euros (£783,000) to supply 500 handheld sales devices to Air Berlin.

It adds to contracts with airlines including British Airways, Jet2.com, Thomas Cook and Virgin Atlantic.

However, the company recently said pre-tax profits more than halved to £151,000 in the six months to the end of June.

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Revenues were down 9.4 per cent to £4.3m as customers hesitated over placing orders.

The company insisted it sits in a “very strong competitive position” and is confident the orders have not been cancelled but deferred. Net cash surged from £638,000 to £1.6m.

Belgravium expects a stronger second half – although warned it may not be as strong as a year ago.

“There’s a lot of work in the pipeline,” said Mr Kembery. “The only thing I cannot say is quite when it will be placed.”

Markets started to soften in May and June, said Mr Hardy.

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However, the firm signalled its intent to pay a full-year dividend.

Eric Burns, analyst at house broker WH Ireland, has cut his full-year pre-tax forecast from £1.1m to £500,000, and moved to “market perform” from “buy”.

“In common with many in the wider electronics space, Belgravium is finding business frustratingly slow,” he said at the time.

“We exercise some degree of caution in our expectation for both this year and next, mindful of the somewhat anaemic economic backdrop.”

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