Belgravium Technologies PLC Acquisition and Trading Update (7853Y)

TIDMBVM

RNS Number : 7853Y

Belgravium Technologies PLC

04 December 2014

4 December 2014

BELGRAVIUM TECHNOLOGIES PLC

(AIM: BVM)

Acquisition and Trading Update

Acquisition

Belgravium Technologies ("Belgravium" or the "Company"), a leading provider of software applications and solutions to the retail, logistics and access control industries, is pleased to announce that it has agreed to acquire the entire issued share capital of Access Fire and Security Ltd ("AFS") for a consideration of GBP500,000 payable in cash on completion, with a pound for pound adjustment if there is less than GBP170,000 in cash in AFS's balance sheet on completion. Completion is expected to take place on 31 December 2014.

AFS supplies and installs, with fully managed after sales service contracts, access control and security systems into both commercial and educational establishments from its base in Henley in Arden. The unaudited accounts of AFS for the year ended 31 January 2014 show a turnover of GBP729,000 and a profit on its ordinary activities before taxation of GBP29,000 with the balance sheet showing net assets of GBP213,000. The acquisition of AFS is expected to be significantly earnings enhancing in the first year.

This acquisition is in line with the Company's strategic objective of further strengthening its presence in the access control market and building on the success of the Feedback Data purchase. It is intended to merge the AFS business into Feedback, which will then operate from its existing base in Uckfield and the new base in Henley in Arden. In addition to broadening the customer base, the combination will allow Feedback to enhance its geographic reach and to access additional security system sales and services to its growing user base.

Trading update

As expected when the interim results were released on 3 September 2014, the second half of the year is proving stronger than the first half. Revenues will have increased in the second half and are currently expected to be around 8 per cent. higher for the full year. Pre-tax profits have also been stronger in the second half with the full year expected to be around 50 per cent. higher than last year's profit of GBP336,000 before exceptionals. This outcome for the year, which is below market expectations, has been affected by a material contract which had been expected to have been confirmed and delivered prior to the year-end. 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.

Contacts:

Belgravium Technologies Plc www.belgravium-technologies.com

   John Kembery, Executive Chairman                                           [phone] 
   WH Ireland Limited (Nominated Adviser and Broker)              www.wh-ireland.co.uk 
   Mike Coe / Ed Allsopp (Corporate Finance)                                [phone] 

This information is provided by RNS

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