Data firm capturing the orders as clients return

The Bradford-based group, which makes and sells hand-held computers and software for companies to check on their stock, is also on the lookout for modest acquisitions as it looks to expand into new sectors.

Belgravium was hit by major customers slashing their budgets during the downturn, but customers have now resumed spending.

The company has won a number of new contracts recently including airlines Thomas Cook and Monarch. Its blue chip client list includes Coca-Cola, Heinz, Morrisons, Shell, BP, Virgin, DHL and Swiss Air.

In the six months to June 30, pre-tax profits rose from £26,000 to £320,000. Sales rose 30 per cent to £4.8m.

Chairman John Kembery said: “We’ve been through some fairly difficult times. It’s still hard, but we’re confident. These half year results are a distinct improvement on the prior year.

“The market isn’t noticeably easier, but we are getting more and more orders. We’re not looking at an improvement in the economy, we’re seeing an improvement in the business because we’re getting better.”

Group managing director Mark Hardy added: “Some of our rivals are struggling. We are confident we are the best in the market.”

Orders are up 25 per cent on last year at a forecast £10.1m for the full year.

Going forward the group said its only uncertainty is the effect of further financial problems in the euro zone.

The group’s business was split 50/50 between the UK and the Continent, but this has increased to 60 per cent UK and 40 per cent Europe.

Mr Kembery said the group had not intentionally moved away from the euro zone, the switch just reflects where new orders have come from.

Belgravium is looking at acquisitions both at home and abroad.

Possible targets abroad include Germany where the group has less business than it would like.

At home it is looking at acquisitions that would open up a new sector to the company.

Previous acquisitions include Novo, which opened up the airline and railway mobile catering and retail sector, and Touchstar, which gave it access to the petro-chemical sector.

Mr Kembery said the group is looking at acquisitions that focus on a service sector where the group is currently unrepresented.

The switch to acquisitive mode follows the restoration of the balance sheet to a net cash position of £640,000 against a net debt of £710,000 a year earlier.

Analyst Eric Burns at WH Ireland said: “Following three years of static profitability these interim results are the strongest since 2007 and show that Belgravium is returning to more significant levels of profitability.

“This is being driven by the company’s strategy to ruggedise the business during the downturn and also by what we detect is an improvement in the competitive environment.”

Mr Burns has switched his share recommendation from ‘speculative buy’ to ‘buy’.

The group plans to reinstate the dividend this year.

Belgravium is developing a number of new products and services in a bid to stay ahead of rivals.

Mr Burns said hardware developments are likely to lead to two new mobile devices being launched in 2012.

“These devices will incorporate the latest processors and technology with advanced options, such as on-board cameras, 2D bar code scanning and RFID reader capability,” he said.

Belgravium has also developed and piloted a web-enabled software solution for vehicle tracking and telematics. This allows customers real-time system access to locate drivers and check they are on schedule as well as monitoring both vehicle and driver performance.

Another area for development is the integration of chip and pin into airlines’ on-board card transactions. At present, chip and pin confirmation has to be offline and cannot redress the issue of insufficient funds in a bank account.

Sending out the signals

Belgravium’s origins can be traced back to 1904, but its recent history began in 1987 when Belgravium implemented its first Mobile Radio Data Communications system, consisting of 30 vehicle-mounted terminals.

In 1995, Belgravium was acquired by Eadie Holdings. Based in Bradford, Belgravium was a supplier of hand-held terminals.

In the late 1990s, Eadie downsized and was renamed Belgravium Technologies.

It moved from the official list to AIM, raising £420,000 in the process.

In 2005, the company announced the acquisition of Manchester-based Touchstar Technologies, a similar business in both activities and size to the original Belgravium business.