Tight rein on spending hits Belgravium

The Bradford-based group, which makes hand-held computers for companies to check on their stock, said sales in the first six months of the year fell 15 per cent to 3.7m on pre-tax profits down 81 per cent to just 26,000.

Chairman John Kembery said: "The first half saw a continuation of previously announced trends in our business, namely a subdued level of order intake as customers' financial concerns weighed on capital expenditure decisions.

"We nonetheless believe that our strategy for managing the business through the downturn has proved successful and look forward to an improvement in sales from the second half."

Since 2007 the group has been hit by major customers, including airlines, slashing spending.

"The process of converting an enquiry from operational management into a financially authorised contract used to take weeks and now takes months, sometimes longer," said Mr Kembery.

"Upgrades and renewals are equally difficult and whilst there is still an underlying international demand, the market has been frustratingly slow and difficult to forecast."

Belgravium is confident a plan to focus on sales, product quality, repeat revenues, costs and partnerships means its outlook for the year as a whole is better.