Good cost control helped mobile hardware and software systems supplier Belgravium increase its interim profits.
Pre-tax profits rose 41% to £1.02m even though turnover rose more modestly in the six months to June 2007.
Management is cautious about the second half but it already has orders from Virgin Atlantic, Air Berlin, Primagaz and Great Bear Distribution. It is worried that other buying decisions may be delayed. House broker Landsbanki has reduced its full year profit forecast from £2.3m to £2m. That still represents a significant improvement on the £1.38m profit reported for 2006.
The fall in the shares from 16.75p to 13.75p looks a little harsh because it is a bigger percentage decline than for the forecast reduction.
Belgravium is looking to acquire more businesses with software and knowledge of additional markets. It will then be able to sell its software to new customers. Sectors, such as health, are thought to provide growth opportunities.
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