SHAREHOLDERS in mobile computing systems firm Belgravium Technologies will have to wait for a payout as the Bradford-based business hopes to use cash reserves for another acquisition.

The company, which designs, installs and maintains software and hand-held systems for the airline, rail, retail and logistics industries, has revealed it is in the early stages of talks about a possible deal with an unidentified target.

John Kembery, Belgravium chairman, said: "The board has decided not to recommend the payment of a final dividend for the year. It has taken this decision in order to conserve cash for a potential acquisition that has been identified.

"Negotiations are still at an early stage but the board currently anticipates that if the acquisition is concluded, it will be financed from the company's existing cash resources and bank debt. If the acquisition does not proceed, the board will consider paying a dividend following the announcement of the interim results in September.

"One of Belgravium's principal strategies has been growth by acquisition. We are delighted by the acquisition of Feedback Data and more recently AFS, and we shall continue to seek further acquisitions."

Reporting the results for the year to December 31, Mr Kembery said: "2014 was a much improved year with increased revenue and profits. The group has made continued progress in extending its activities and offerings to cater for a wider and more discerning market. The board believes that further progress will be achieved in the current year."

Belgravium increased turnover by 12 per cent to £9.4 million from £8.4 million in 2013, with net profits more than doubling to £509,000 against £219,000 a year earlier.

The business is debt free and boosted cash reserves to £731,000 from £219,000.

Revenues were boosted by the first full year contribution from Feedback Data.

The increased profit was after exceptional costs of of £27,000 relating to the £300,000 cash acquisition of Access Fire & Limited which completed at the end of the year.

Mr Kembery said the company had excellent progress on meeting the demands of customers opting to use its technology on tablets and smart phones as well as its industrial terminals.

Development of equipment continued with the upgrade and improvement of both the Hawk and Boston mobile devices, and the launch of a new truck mounted terminal.

Belgravium won key contracts with First Great Western - a key breakthrough into the onboard train sales sector - and Leo Express in the Czech Republic and also continued to develop new products.