23rd Sep 2014 10:28
LONDON (Alliance News) - Consultancy and software provider KBC Advanced Technologies PLC Tuesday posted growth in revenue for the first-half of the year, but a flat pretax profit, after it said profit gains were held back by sterling strength.
The company, which provides technology and consultancy services for the oil and energy industries, said it remains confident of meeting full-year expectations, despite reporting a flat pretax profit of GBP2.9 million for the six months to June 30. Adjusted for exchange rate movements, the company said its pretax profit grew 64% to GBP3.6 million, up from GBP2.2 million a year earlier.
"The company has focused on growing its Technology business, particularly in the upstream sector, improving its Consulting business in terms of both profitability and growth, expansion in the Middle East, South America and Asia, and keeping strong control of costs and overheads," said Executive Chairman Ian Godden in a statement.
Revenue grew in the period to GBP34.4 million, up 9% on the GBP31.7 million in revenue in generated in the first-half of the year. It said revenue growth was driven by improvements in its consulting business, a division is expects further growth from in during the remainder of the year as it continues to win new contracts.
"The second half of 2014 has started well and the group has been awarded a number of significant software contracts since June. The Consulting pipeline for larger projects is growing and recent contract wins in South America, the Middle East and Asia provide good prospects for the future. We expect full year results to be in line with the board's expectations," said Godden.
As last year, the company did not pay an interim dividend, and said it intends to propose a final dividend following its full-year results.
Shares in KBC Advanced Technologies were trading 1.9% lower before midday Tuesday at 104.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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