14 May – acquisition
The group has agreed to pay £600,000 for a subsidiary of fellow AIM stock Feedback which will take the company into new sectors. The funding will come from the group’s existing cash resources which totalled some £1.6m at 31 December. Although the acquisition only had revenues of just under £2m it may help to counterbalance the lumpy nature of Belgravium’s existing revenues. The acquired business lost £54k in the year to May 2012 but with access to additional resources and investment the business should be restored to profitability going forward. We maintain our recommendation of BUY.