Companies: BVM   

Despite the usual lacklustre first quarter and digestion of two key acquisitions, real-time data capture systems business Belgravium delivered good half-time figures to June and an upbeat outlook statement.

Sales more than doubled to approaching £5m, largely due to October 2005 acquisition Touchstar, which makes systems for the oil and petrochemical industry, and the more recent acquisition Novo, a supplier of mobile retailing systems used in aeroplanes and trains. Adjusted pre-tax profits came in at £731,000, and despite new shares in issue, earnings were maintained at 0.51p. The strong cash position enabled chairman John Kembery to hold the half-time payout at 0.13p.

Kembery says prospects for the second half are good with investors likely to see real benefits from the acquisitions, and he is confident the full year result will significantly outstrip 2005. Kembery refuses to rule out further acquisitions either as he strives to give the business scale and smooth out the lumpy nature of contracts.

The City is looking for adjusted pre-tax profits of £1.77m from £10.6m sales for the full year, which should translate into earnings of 1.23p and a dividend of 0.5p. On a forward p/e of 9.6 with a good yield, the shares look great value. The short term price target is 15p. Add.