Belgravium Technologies bombs to new low after writedowns

Final results from Belgravium Technologies disappointed investors as the mobile data computing group crashed into the red after a year of consolidation and transformation.

After writing down some stock and a drastic looking £6m of goodwill, Belgravium posted a £6.5m operating loss and a loss per share of 6.28p, even though revenue was fairly solid at £8.7m, down 8% on the prior year.

The AIM-listed company highlighted the underlying cash generative nature of the business, though increased investment in product development, marketing support and "considerable monies" paid to exiting employees, cut our cash balances to £242,000 in the bank by the year end, though this was up from the £173,000 at the half-year stage.

Chairman Ian Martin said: "Last year was a period of consolidation and transformation for Belgravium. Achieving the primary goals set, has given the business a coherent structure, lower cost base and a vibrant new energy.

"The operations are now more efficient, some costs have been taken out and there have been substantial changes made to both senior management and the Board.

As a result of the goodwill writedown, which reflects what the board thinks is "a more reasonable view of future growth rates", Martin said Belgravium was now "more forward looking, with historic issues behind it".

Shares were down 27% to 2.56p, a two and a half year low.