September 3rd, 2010 A Bradford-based technology firm is expecting to bounce back from heavy half-year losses after securing a £3m order to provide systems to a European petrochemical company.
Belgravium Technologies, which produces real-time data capture systems for several industries, saw pre-tax profits fall to £26,000 for the six months ended June 30, compared to £140,000 during the same period last year. Turnover fell by 15 per cent from £4.28m to £3.65m.
But the company is optimistic about improved prospects for the second half of its financial year, even though it described market conditions as “challenging”.
Once the economic climate improves, Belgravium has plans to seek suitable acquisitions to expand and boost its economies of scale.
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.”
Delays in confirming contracts due to financial uncertainty in the market place continued to be a problem in the first half of 2010, resulting in some anticipated orders not materialising until after the half-year period.
Mr Kembery said it was now taking months to convert enquiries into firm orders, rather than weeks.
Orders gained at the end of the first half year would mean that sales and profits should be restored in the second half and that Belgravium is well positioned to achieve its strategic objectives.
Belgravium manufactures and installs complete systems incorporating both hardware and software which help companies in the logistics, petrochemical and mobile retailing markets to become more efficient and cut costs.
Mr Kembery said: “Challenging market conditions remained in force for the majority of the first half of 2010 but late in the period, we gained a major contract for the supply of petrochemical systems in Europe which we anticipate will be worth £3 million over the next two-and-a-half years.
“Sufficient of this order is to be delivered in the second half of 2010 to restore sales and profits for the year and will be further supplemented by some smaller orders received recently.”
While the logistics market remained difficult, activity had improved in mobile retailing which should generate good opportunities over the next year.
“It would be dangerous to conclude that we have reached the expected turning point in the market, but it would appear that our strategy to deal with the recession is working and that we can now anticipate sustained improvements in sales.”
Source: Telegraph & Argus
