25th Mar 2014 09:13
LONDON (Alliance News) - KBC Advanced Technologies PLC Tuesday said it would resume dividend payments, as pretax profit was boosted by a strong performance in the company's Consulting division and by cost-cutting measures in 2013.
KBC provides consultancy services and software for the hydrocarbon processing industry.
The company reinstated its dividend, recommending a final dividend of 1.0 pence per share.
KBC posted a pretax profit of GBP7.1 million in 2013, up from GBP3.7 million in 2012, as revenue rose to GBP65.1 million from GBP63.1 million, and higher depreciation and amortisation costs were offset by lower staff costs and other operating charges as a result of the company's restructuring programme.
In KBC's Consulting division, revenue rose 6.5% to GBP47.2 million from GBP44.3 million, benefiting from the simplification and reorganisation of the division, and an improved operating profit margin. This offset a decline in revenue to GBP17.9 million from GBP18.8 million in the company's Technology division.
KBC said that without the restructuring programme that it implemented in 2012, oil sector inflation in would have caused increases in direct costs to be "much more significant."
The company does not expect to complete its restructuring programme until the end of 2014, although it is largely implemented or well under way, KBC said. It is closing or downsizing oversized offices in mature regions, improving margins in its Consulting business and improving sales and marketing.
Amortisation charges rose to GBP4.4 million from GBP2.7 million, partly due to costs relating to its acquisition of Infochem Computer Services Ltd in the middle of 2012.
The company said that it had seen a good start to 2014, and this combined with the changes it made in 2013, gave it confidence that it was well placed to deliver continued growth in 2014 and beyond.
Shares in KBC were trading up 6.2% at 125.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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