LONDON (ShareCast) - (ShareCast News) - Belgravium Technologies swung to a pre-tax loss in the first half on the back of restructuring costs.
For the six months ended 30 June, the company posted a loss of £50,000 from a profit of £214,000 in the same period last year, as revenue declined to £4.43m from £4.57m.

Belgravium attributed the drop in revenue to a general flatness in the market and a specific internal issue caused by the distraction of integrating the recently acquired AFS business, which resulted in a loss of sales momentum at Feedback Data.

In addition, the company said it took a hit from an exceptional charge of £95,000 from restructuring costs.

Chairman Ian Martin said: "This year will be a year of transformation for Belgravium. A restructuring programme is underway which will see the group benefit next year and in subsequent years from a much lower cost base, coherent structure and new energy."

Martin said the company plans to reduce the cost base by around £500,000 on an annualised basis and make the business more effective. He said Belgravium needs to improve its commercial capability and accelerate the development of a newer generation of products and services.

"Only then can we drive real organic revenue growth. This investment is now being made, although it will take a while for the returns to flow through into our financial results," said Martin.

At 0925 BST, Belgravium shares were down 27% at 3.02p.

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