Good year enables Belgravium to restore dividend

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MOBILE computing specialist Belgravium Technologies said it plans to pay its first dividend since 2007 after surging profits and revenues.

The Bradford-based firm supplies devices for firms to check on stock, monitor fleets and collect signatures for deliveries, as well as associated software. It said pre-tax profits for 2011 hit £1.02m from £432,000 a year earlier.

Revenues increased 36 per cent to £11.12m, helped by a big contract with British Airways.

“2011 was a very good year in which we delivered a strong financial performance and made substantial progress in achieving our strategic objectives,” said executive chairman John Kembery.

“Looking forward, although visibility on sales is always limited, we believe our market position has strengthened and that we are well placed to capture future opportunities.”

The group plans to pay a dividend of 0.1p per share, and ended the year with no debt and cash equivalents of £1.2m.

Belgravium said while customers still appear reluctant to commit to big capital projects, it has been able to win sales where it can demonstrate the economic benefits of its products.

Increasingly it sells “wrapped solutions”, combining both hardware and software. Belgravium added it plans three new product launches this year.

It was boosted through 2012 by contracts including a deal for more than 600 mobile units for courier Hermes, plus a £3.3m deal with a French energy firm to fit 1,200 vehicles with tablet computers.

Its BA deal won late last year saw the firm supply the airline with 1,900 handsets and software, for use by crews on flights.

All three deals were won against “strong competition”, said the group, and it plans to bolster its sales force to win more contracts.

Eric Burns, analyst at house broker WH Ireland, said: “Whilst the outlook for the year ahead remains one of caution, we believe the BA contract may open new doors in 2012 and the planned expansion of the sales team should open up new territories.”