17th Jun 2015 07:41
LONDON (Alliance News) - KBC Advanced Technologies PLC Wednesday said it is confident it will meet its expectations for 2015 as it continues with its restructuring plans to reduce its cost base and with investments in targeted growth areas.
The provider of software to the hydrocarbon processing industry said that it has been concentrating on key regions where it believes growth is most likely and has been restructuring the company's cost base.
Investments in the Middle East and North Africa resulted in contract awards of over GBP9 million during the first five months of 2015, KBC said, including several major contracts to support national oil and gas companies in Saudi Arabia, Kuwait, the United Arab Emirates, Oman and Jordan.
KBC also reduced its headcount by 10%, mainly in North America where it closed its New Jersey office, which a one-off cost of GBP800,000 in 2015 leading to an annualised saving of about GBP3.4 million.
KBC added that its two recently acquired software businesses, Infochem and FEESA, have performed well, and that it recently signed a joint reseller agreement with technology solutions company Kongsberg.
"The appointment of Eric Dodd, our new CFO, in May 2015 completed the successful transition to a new executive leadership team. The new CEO, Andrew Howell, has reorganised the group and established a strengthened executive team to drive the business forward over the next five years with a clear and strong strategy for the company," KBC said in a statement.
"Whilst market conditions are likely to remain uncertain for the foreseeable future, our steps to rightsize the company's cost base and focus on growth markets give the board confidence that KBC will meet its expectations for 2015," the company added.
KBC is holding its annual general meeting later on Wednesday.
Shares in KBC were trading down 1.5% at 107.90 pence early Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
KBC.L