Belgravium Share Discussion Threads

[rivaldo] 20/3/2015 11:18

Hastings, I can't see the article on BVM yet on the Cambridge News web site - will it be up next week?

[rivaldo] 16/3/2015 08:41

Cheers hastings, looking forward to Tuesday's article - hopefully it'll bring in further interest.

The flagged acquisition would be excellent news and I suspect would send the share price up to 6p and perhaps new highs, but these things invariably take time and often fall through anyway.

Varies, BVM usually RNS when the Annual Report has been sent out, which they haven't done yet, so it's just a natter of waiting.

[varies] 15/3/2015 14:37

It seems likely that nothing much will happen here until a decision is reached on the proposed acquisition.
BVM usually sends me a hard copy of the Annual Report although my shares are held through nominees. Have any of you received the accounts for 2014 yet ?

[hastings] 14/3/2015 22:09

May be of interest to others taking a look.

[rivaldo] 13/3/2015 14:02

Welcome Aishah, good to see you here. BVM would be ideal for Techinvest - there should at the least be coverage of the results and positive outlook.

Nice 87,000 buy at 5.7p just reported - well above the published 5.5p offer price.

[aishah] 11/3/2015 13:06

Have bought in recently here. WH Ireland fcst 0.7p for 2015. Low pe and PEG. I wonder if Techinvest will start coverage.

[michaelmouse] 09/3/2015 19:18

Keep the posts coming Rivaldo. Useful and informative. Totally agree re: recurring revenue. Thanks.

Michael.

[rivaldo] 09/3/2015 08:57

Nice summary mm, cheers. As you say, 0.6p EPS this year, with a dividend and a sound Balance Sheet, makes BVM pretty good value at current prices.

FYI I contacted the company, who confirmed that the system in the results which could be deployed on some 650 vehicles is indeed the contract which was deferred to this year. Which should provide a nice bonus.

In addition, I understand that recurring income rose from 46% in 2013 to 50% in 2014.

This is an extremely important - and encouraging - metric, and one which I'm surprised that BVM don't highlight right at the top of their results narrative. It's something which I'm sure a number of investors aren't aware of at all.

[michaelmouse] 08/3/2015 19:56

Very encouraging final results:-



Michael.

[rivaldo] 06/3/2015 08:51

Looking very good online - you can only buy 25k maximum at 5.25p, but you can sell 200k at 5.1p, i.e almost the mid-price.

[vasilis] 05/3/2015 14:30

varies - your more than welcome.

rivaldo - I agree. That was also the pilot which caught my eye.

So, in summary we have today :-

1 The company is operating profitably and is cash positive - mainly due to the logical decision by the BOD to move towards supporting an 'open platform' strategy driven by customer demands - which are increasing in a growing market.

2 An expected 'materially significant' contract in the next few months - which could well be followed by other pilots 'going green' once 'the big boy' signs up.

3 A potential acquisition whose funding is supported by a debt-free balance sheet and cash in the bank and which should increase cash flow, earnings, and -hopefully - the overall core competences of the company.

Yet still the share price level reflects where this company has been in the past and not where it is aiming to go in the future. No worries - the market will re-rate as and when what is expected starts to materialise. All that's required is a little patience.

[varies] 05/3/2015 13:12

Vasilis and Rivaldo
Many thanks

[rivaldo] 05/3/2015 12:06

Indeed - I would bet that this contract is the biggie referred to here:

"A number of pilot systems have been delivered in to the transport sector and are progressing well. One such scheme, which could be deployed on some 650 vehicles, is expected to commence during 2015."

Hopefully this will be announced soon. If so the share price will get a nice boost.

Good to see buying coming in at the full 5.25p offer price now.

[vasilis] 05/3/2015 11:46

varies

The Trading Update of 4 December 2014 stated -

'This contract award however, has been deferred and is now expected to fall in the first half of next year. If the contract had fallen in the current year, the result of the year would have been in line with market expectations.'

So, whilst we are not given any details regarding the reasons behind the deferral of this contract, BVM do have up to 30 June 2015 to deliver on their 'expectations' based upon that announcement of 4 December. All we know today is that it is a significant contract - and perhaps is one of the 'pilots' currently being undertaken and referred to in yesterday's results that are hoped to be converted to full blown contracts later this year. All will no doubt be revealed in due course.

[cocker] 05/3/2015 09:44

i suppose if you hear something enough times you might actually believe it. BVM results so good that on the day of release less than 500k bought. following day only paper to mention such fantastic news is the yorkshire squirrel. Directors as yet not topped up & today so far not a single trade as i type.

[rivaldo] 05/3/2015 09:11

Excellent coverage here, particularly the broker comments:



Extract:

"Profits more than treble at computer firm Belgravium
published 15:20 Wednesday 04 March 2015

HANDHELD computer firm Belgravium Technologies said annual pre-tax profit more than trebled to £​475,000 ​last year.

The Bradford-based firm said a sustained sales effort brought good results in the fourth quarter of 2014 and annual revenues rose 12 per cent to £9.4m, boosted by the first full year contribution from Feedback Data.

Chairman John Kembery said: “2014 was a much improved year with increased revenue and profits. The group has made continued progress in extending its activities and offerings to cater for a wider and more discerning market. The board believes that further progress will be achieved in the current year.”

​The group said it won’t pay a final dividend for the year in order to conserve cash for a potential acquisition that has been identified.

Mr Kembury said negotiations are still at an early stage but the board anticipates that if the deal goes through, it will be financed from the company’s existing cash resources and bank debt.

If the acquisition does not proceed, the board will look at paying a dividend following the announcement of interim results in September.

​Analyst Eric Burns at WH Ireland said: “Belgravium’s full year results are bang in line this morning and show some very decent progress year on year.

“The statement also flags that as discussions are ongoing regarding a possible acquisition, the company has decided to pass its final dividend.

“With £700,000 in cash, the shares have clear value attractions trading on a current year P/E of just 7.3 times.”

​Belgravium designs, installs and maintains software applications and solutions for the airline, rail, retail and logistics industries.

A major part of its strategy is to provide solutions that create a long-term relationship with customers and repeat revenues.

Its mobile retailing software can now run on all three major operating platforms, Windows, Apple iOS and Android whereas previously it could only work with Windows."

[stegrego] 04/3/2015 19:35

If they pay out a divi, the share price usually drops by that much anyway, so you don't make anything.

[rivaldo] 04/3/2015 19:01

Given potentially 0.8p-0.9p EPS this year with the flagged acquisition, it's easy to see a share price of say 10p or so, which would represent a one-bagger from here.

That would be more than enough for me.

As Vasilis says, far better to utilise BVM's strong Balance Sheet - and hopefully BVM's loan facilities too - to grow the company. That's why BVM are on the markets after all.

[cocker] 04/3/2015 18:08

As pointed out earlier the costs of 130k for the divi is hardly a lot if this company is generating cash at the rate it states. It points to another missed target from JK & those of us who have been around for years are getting a little tired of excuses. This so called target firstly has been in the pipe line for some time & why do you all expect it to be eps positive. I'm not saying it won't be, but it is possible that the so called target could be loss making but makes a good fit to some bvm products. Finally I doubt given a two/ five year view many will lose money. However, I also doubt bvm's share price will set the world alight.

[varies] 04/3/2015 12:27

I can see no reference in today's statement to the material contract mentioned on 4 December.
This had been expected to be delivered by 31.12.2014 and would now fall into the first half of 2015. Its delay accounted for 2014 profits falling below expectations.
An announcement of its completion would be re-assuring.

[rivaldo] 04/3/2015 11:59

Cheers Norbert.

As well as the optimism in the outlook, I'm also particularly cheered by the successful expansion into other sectors, notably the new rail contracts. Not only have BVM sold their EPS solution abroad (Czech Republic), but this in particular sounds like big news:

"A number of pilot systems have been delivered in to the transport sector and are progressing well. One such scheme, which could be deployed on some 650 vehicles, is expected to commence during 2015."