3rd Sep 2009 07:00
3 September 2009
Embargoed until 0700
KBC Advanced Technologies plc
("KBC" or "the Group")
Half year results for the six months ended 30 June 2009
KBC Advanced Technologies plc, a leading consultant to the energy industry, today announces its half year results to 30 June 2009.
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6 months to 30 June 2009 |
6 months to 30 June 2008 |
|
|
Revenue |
£27.1m |
£24.4m |
|
Profit before tax |
£1.47m |
£2.85m |
|
Underlying profit before tax* |
£2.44m |
£3.01m |
|
Basic earnings per share |
1.62p |
3.31p |
|
Underlying earnings per share* |
2.77p |
3.57p |
|
Dividend per share |
0.45p |
0.35p |
* Excluding the impact of research and development costs carried forward, the amortisation of intangible assets and the provision for redundancy costs.
Encouraging performance despite weaker conditions in refining industry
Refining industry activity continues to rise in parts of Asia, Africa and South America; weaker in North America and parts of Europe
CapX services have seen continued good levels of activity, especially in developing economies
OpX services weaker in H1 but confident that demand will increase
New environmental service launched during the period; progress good so far
Software revenues have more than doubled to 30% of H1 group revenues; annualised revenue stream from maintenance and support contracts is now more than £4.0m
Clear signs at the period end of improving trading conditions, with £18.0m of contract wins in June and July; sales pipeline healthy
Interim dividend increased by 29% to 0.45p, reflecting confidence in the business and dividend rebalancing
Commenting on the results, Ian Miller, Chairman of KBC, said
"Although the first half of 2009 was challenging for KBC, there were clear signs by the end of the period that trading conditions were improving. £18.0m of contract awards were realised in June and July, and we have seen consultant utilisation rise accordingly. The pipeline of future sales is healthy and there are more opportunities which we expect to close during the remainder of the year. Refining industry conditions remain difficult in some parts of the world, but the scale of required industry change represents a growing and significant opportunity for KBC.
Following the enhanced sales awards in recent months, backlog stands at £39.0m at the end of July including a higher proportion of consulting work than previously. The combination of this improvement, the cost savings implemented in the first half of the year and a stronger trading outlook gives us the confidence to look forward to an improved operating performance in the second half of this year."
-Ends-
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KBC Advanced Technologies plc |
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George Bright, Chief Executive Nicholas Stone, Operations and Finance Director |
On 3 September: 020 7067 0700 thereafter: 01932 236314 |
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Weber Shandwick Financial |
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Nick Oborne / Clare Thomas |
020 7067 0700 |
An analysts' presentation will be held at 9.30 am at Weber Shandwick Financial's offices, Fox Court, 14 Gray's Inn Road, London, WC1X 8WS. Copies of the presentation will be available on the Company's website: www.kbcat.com
Notes to Editors:
For 30 years KBC's consultants have provided independent strategic and engineering expertise to enable leading companies in the global energy business and other process industries to manage risk while maximising value from their assets.
In times of economic uncertainty and increasing environmental pressure, KBC's proprietary methodologies and innovative tools guide clients' key strategic decisions, enabling them to prioritise and implement initiatives that maximise return on investment, and improve operational performance.
KBC's services include:
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● |
Strategic Consulting - providing strategy support to our clients, comprising market forecasting, business analysis, M&A support, and feasibility and definition studies |
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● |
Operational Excellence ("OpX") - helping clients to ensure that their facilities are operated in a safe, environmentally acceptable and profitable manner. The service covers planning and scheduling, reliability and maintenance, safety, health and environment, leadership development, human performance and continuous improvement |
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● |
Capital Excellence ("CapX") - providing design and project management support for new and brown field projects from concept through to start-up |
For more information, visit www.kbcat.com.
KBC Advanced Technologies plc
("KBC" or "the Group")
Half year results for the six months ended 30 June 2009
Chairman's Statement
I am pleased to report that despite the significantly weaker trading conditions in the refining industry KBC's business has performed well in the first half of 2009.
In an encouraging operational performance, revenues of £27.1m increased by 11% over the same period last year (2008: £24.4m) and contract awards were £24.5m against £27.0m in 2008. The resulting workload backlog is £35.0m, in line with that at 30 June 2008, but down on the £39.0m at 31 December 2008.
Following a £1.0m adverse foreign exchange movement and a charge of £0.8m in restructuring costs that were highlighted earlier this year and which will deliver annualised cost savings of around £2.6m, profit before tax was £1.5m (2008: £2.8m). Underlying profit before tax (see note 3 to this statement) was £2.4m compared to £3.0m in 2008. This measure excludes the creation and amortisation of intangible assets and the redundancy costs but not the foreign exchange movement.
OPERATING REVIEW
Global oil product demand declined in the last twelve months and for most of the period stock levels have been at historically high levels, although there have been significant regional variations. In parts of Asia, Africa and South America demand and activity levels within the refining industry have continued to rise, while the decline in activity has been most marked in North America and parts of Europe, where the global recession has hit hardest and there is now an excess of refining capacity.
Our OpX business has seen cost cutting measures in many of our clients' organisations where, despite our ability to deliver material savings with short payback on limited investment, many clients have minimised spending while they decide on strategies for future direction of their business, reducing opportunities for us.
We remain confident that demand for OpX services will increase as our clients strive to adapt to materially changed market conditions, which will require significant efficiency improvements and cost savings. Our Human Performance Improvement ("HPI") services remain in demand from US-based refiners who are still facing issues with workforce demographics and compliance with demanding regulatory requirements. These services, which encompass training and assessment programs, production of procedures manuals and process documentation, have now been rolled out in all of our regions and we have seen new work in parts of the Middle East and Asia.
Our CapX services have seen continued good levels of activity, especially in the developing economies where growth in demand is still leading to an expansion in refining and chemical processing capacity. This has mainly been in the Middle East, Asia, Africa and particularly South America, where we have continued to work successfully with our engineering contractor partners. Work executed in the period has ranged from asset evaluation and technical due diligence, to feasibility studies for several grass roots refinery design projects. The economic analyses and forecasts for the oil and product markets published by KBC Market Services have continued to be a key driver behind the success in this area.
Important CapX projects have been the continuation of our work with PetroSA on a new refinery project in South Africa, similar projects in Korea and the Middle East and more recently the signing of a contract for work on a new refinery project in Ecuador, working for SK Engineering & Construction. This increase in newer and more efficient refining capacity in parts of the world where oil product demand is growing will exacerbate the problem of excess capacity in areas of demand decline. This will inevitably lead to closure and sales of refinery assets, thereby creating further opportunities for KBC's business.
Rationalisation of capacity and M&A activity in the industry remains strong, leading to increased demand for strategic studies.
This year has seen the launch of KBC's new environmental service offering following the recruitment of some key individuals from AMEC during the second quarter of the year. This business is less reliant on the fortunes of the refining industry and will conduct assessments and give advice on the environmental impact of projects throughout the energy industry and in other areas such as mining. Progress has been good so far and the new business is on track to break even in its first year as planned.
Our consulting utilisation during the first half has run at below 70% versus a target of 75%. While this has allowed us to catch up on research and development and innovation activities that were not possible during 2008 due to higher levels of utilisation, it has depressed our consulting margin and overall profitability. As a result steps were taken during the second quarter to reduce costs, including a redundancy programme that reduced headcount by 7%, together with a focus on reducing travel costs and amendments to management bonus schemes. Annualised savings of £2.6m have been implemented that will deliver £1.3m savings in the second half of 2009 at a cost of £0.8m, which has been charged against first half results. The use of associate consultants has also been reduced to 11% of billable hours from 14% during 2008.
Software revenue has more than doubled from the same period in 2008 and contributed nearly 30% of total revenues in the first half year. Although this included licence fees from the successful software sales of last year, the software business has become a significant contributor to our business success and there is now an annualised revenue stream from maintenance and support contracts of more than £4.0m. Development activities in 2009 have focused on the next version of Petro-SIM (Version 4) that is due for launch later this year and is now in beta testing. This new version will incorporate numerous enhancements to maintain Petro-SIM as the leading refinery simulation software.
RESULTS
Revenue for the first half of 2009 is £27.1m, up by 11% from the £24.4m reported for the same period last year. Direct costs have decreased by 23%. Staff and associate consultant costs have increased by 38% due to the hiring of new employees and associate consultants in the second half of 2008, the relative value of overseas salaries in sterling terms and the provision for redundancy costs of £0.8m. Other operating charges have increased by 40% with three quarters of this increase, or £1.0m, being the impact of foreign exchange gains and losses on the revaluation of working capital balances during the period as sterling has strengthened.
Operating profit has decreased by close to 50% to £1.5m (2008: £2.9m). This decrease can be attributed entirely to the cost saving measures taken during the period and the previously mentioned foreign exchange movements. Note 3 to this statement shows the measure of underlying profit that excludes the impact of the cost saving measures, the carry forward of software development costs and the amortisation of acquired intangible assets. This shows an underlying operating profit for the period of £2.4m compared to £3.0m in 2008, a more representative decline of 19% that again can be more than explained by the impact of foreign exchange losses.
Profit before tax after finance revenue and cost is £1.5m (2008: £2.8m). After the tax charge of £0.6m, or 38%, profit for the period was £0.9m (2008: £1.9m). Basic earnings per share is 1.62p, down from 3.31p in the first half of 2008. Earnings per share based on the underlying profit measure shows a much smaller decline to 2.8p from 3.6p last year. The effective tax rate of 38% is higher than the 35% in the same period last year. This is mainly due to a differing profit distribution, with a higher proportion of profits in higher tax regimes, and the ongoing irrecoverability of certain withholding taxes suffered in our UK company.
Net cash at 30 June 2009 was £1.8m, down from £5.7m at 31 December 2008 and up from £1.2m at 30 June 2008. The decrease in net cash since the last year end had three key seasonal elements: the 2008 profit related incentive scheme payments of £3.0m, deferred acquisition consideration of £0.7m and the final shareholder dividend of £0.6m. As in 2008, we expect cash resources to strengthen during the second half of the year.
DIVIDEND
An interim dividend of 0.45p per share will be paid on 7 October 2009 to shareholders on the register on 18 September 2009. This compares to 0.35p per share paid at the interim last year and reflects the Board's confidence in the sustained turnaround in business performance and a desire to achieve a better balance between the interim and final dividend payments.
A dividend of 1.0p per share was paid during the period as the final dividend for the year to 31 December 2008, making a total of 1.35p for the whole year.
OUTLOOK
Although the first half of 2009 was challenging for KBC, there were clear signs by the end of the period that trading conditions were improving. £18.0m of contract awards were realised in June and July, and we have seen consultant utilisation rise accordingly. The pipeline of future sales is healthy and there are more opportunities which we expect to close during the remainder of the year. Refining industry conditions remain difficult in some parts of the world, but the scale of required industry change represents a growing and significant opportunity for KBC.
Following the enhanced sales awards in recent months, backlog stands at £39.0m at the end of July including a higher proportion of consulting work than previously. The combination of this improvement, the cost savings implemented in the first half of the year and a stronger trading outlook gives us the confidence to look forward to an improved operating performance in the second half of this year.
Ian K Miller
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Group condensed income statement for the six months ended 30 June 2009 |
|
Notes |
Unaudited 6 months to 30 June 2009 £000 |
Unaudited 6 months to 30 June 2008 £000 |
Audited 12 months to 31 December 2008 £000 |
|
|
Revenue |
27,058 |
24,449 |
52,769 |
|
|
Direct costs |
(2,566) |
(3,348) |
(7,913) |
|
|
Staff and associate costs |
(16,783) |
(13,725) |
(29,620) |
|
|
Depreciation and amortisation |
(502) |
(377) |
(812) |
|
|
Other operating charges |
(5,712) |
(4,069) |
(8,935) |
|
|
Operating profit |
1,495 |
2,930 |
5,489 |
|
|
Finance revenue |
2 |
10 |
14 |
|
|
Finance cost |
(29) |
(93) |
(112) |
|
|
Profit before tax |
1,468 |
2,847 |
5,391 |
|
|
Tax expense |
(558) |
(996) |
(1,803) |
|
|
Profit for the period |
910 |
1,851 |
3,588 |
|
|
Earnings per share |
||||
|
Basic |
2 |
1.62p |
3.31p |
6.4p |
|
Diluted |
2 |
1.58p |
3.25p |
6.3p |
|
Group condensed statement of comprehensive income for the six months ended 30 June 2009 |
|
Unaudited 6 months to 30 June 2009 £000 |
Unaudited 6 months to 30 June 2008 £000 |
Audited 12 months to 31 December 2008 £000 |
|
|
Profit for the period |
910 |
1,851 |
3,588 |
|
Other comprehensive income: |
|||
|
Exchange differences on retranslation of foreign operations recognised directly in equity |
(939) |
29 |
3,702 |
|
Total comprehensive (loss)/income recognised in period |
(29) |
1,880 |
7,290 |
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Unaudited group condensed statement of changes in equity for the six months ended 30 June 2009 |
|
Issued capital £000 |
Share premium £000 |
Capital redemption reserve £000 |
Merger reserve £000 |
Own shares £000 |
Share based payments £000 |
Translation differences £000 |
Retained earnings £000 |
Total £000 |
|
|
At 1 January 2008 |
1,420 |
8,013 |
55 |
929 |
(2,136) |
707 |
(1,014) |
12,613 |
20,587 |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
29 |
1,851 |
1,880 |
|
Transactions with owners: |
|||||||||
|
Share based payments |
- |
- |
- |
- |
- |
149 |
- |
- |
149 |
|
Shares issued |
7 |
25 |
- |
- |
1,119 |
- |
- |
(1,108) |
43 |
|
Dividend paid |
- |
- |
- |
- |
- |
- |
- |
(279) |
(279) |
|
At 30 June 2008 |
1,427 |
8,038 |
55 |
929 |
(1,017) |
856 |
(985) |
13,077 |
22,380 |
|
At 1 January 2009 |
1,427 |
8.039 |
55 |
929 |
(998) |
1,078 |
2,600 |
14,601 |
27,731 |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
(939) |
910 |
(29) |
|
Transactions with owners: |
|||||||||
|
Share based payments |
- |
- |
- |
- |
- |
150 |
- |
- |
150 |
|
Shares issued |
1 |
5 |
- |
- |
210 |
- |
- |
(211) |
5 |
|
Dividend paid |
- |
- |
- |
- |
- |
- |
- |
(561) |
(561) |
|
At 30 June 2009 |
1,428 |
8,044 |
55 |
929 |
(788) |
1,228 |
1,661 |
14,739 |
27,296 |
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Group condensed balance sheet at 30 June 2009 |
|
Unaudited as at 30 June 2009 £000 |
Unaudited as at 30 June 2008 £000 |
Audited as at 31 December 2008 £000 |
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|
Non-current assets |
||||
|
Property, plant and equipment |
1,760 |
1,475 |
1,690 |
|
|
Goodwill |
8,049 |
6,628 |
7,670 |
|
|
Intangible assets |
1,120 |
1,439 |
1,296 |
|
|
Deferred tax asset |
1,637 |
2,316 |
1,637 |
|
|
|
12,566 |
11,858 |
12,293 |
|
|
Current assets |
||||
|
Trade and other receivables |
21,026 |
18,794 |
24,192 |
|
|
Income tax asset |
225 |
- |
- |
|
|
Cash and short term deposits |
1,794 |
1,193 |
5,691 |
|
|
Other financial assets |
150 |
- |
- |
|
|
23,195 |
19,987 |
29,883 |
||
|
Total assets |
35,761 |
31,845 |
42,176 |
|
|
Non-current liabilities |
||||
|
Trade and other payables |
(167) |
(251) |
(172) |
|
|
Provisions |
(127) |
(280) |
(203) |
|
|
Deferred tax liabilities |
(463) |
(543) |
(463) |
|
|
(757) |
(1,074) |
(838) |
||
|
Current liabilities |
||||
|
Trade and other payables |
(7,502) |
(7,725) |
(12,380) |
|
|
Income tax payable |
(53) |
(479) |
(552) |
|
|
Bank overdraft |
- |
- |
||
|
Provisions |
(153) |
(153) |
(153) |
|
|
Other financial liabilities |
- |
(34) |
(522) |
|
|
(7,708) |
(8,391) |
(13,607) |
||
|
Total liabilities |
(8,465) |
(9,465) |
(14,445) |
|
|
Net assets |
27,296 |
22,380 |
27,731 |
|
|
Equity attributable to equity holders of the parent |
||||
|
Issued capital |
1,428 |
1,427 |
1,427 |
|
|
Share premium |
8,044 |
8,038 |
8,039 |
|
|
Other reserves |
984 |
984 |
984 |
|
|
Own shares |
(788) |
(1,017) |
(998) |
|
|
Retained earnings |
17,628 |
12,948 |
18,279 |
|
|
Total equity |
27,296 |
22,380 |
27,731 |
|
|
Total equity and liabilities |
35,761 |
31,845 |
42,176 |
|
Group condensed cash flow statement for the six months ended 30 June 2009 |
|
Unaudited 6 months to 30 June 2009 £000 |
Unaudited 6 months to 30 June 2008 £000 |
||
|
Net cash inflow from operating activities |
|||
|
Profit before tax and after financing |
1,468 |
2,847 |
|
|
Finance revenue |
(2) |
(10) |
|
|
Finance cost |
29 |
93 |
|
|
Operating profit |
1,495 |
2,930 |
|
|
Depreciation and amortisation |
502 |
377 |
|
|
Share based payment expense |
150 |
149 |
|
|
Movement in working capital |
(2,891) |
(1,904) |
|
|
Cash generated from operations |
(744) |
1,552 |
|
|
Finance revenue received |
2 |
10 |
|
|
Finance costs paid |
(29) |
(93) |
|
|
Income taxes paid |
(1,281) |
(689) |
|
|
Net cash flow from operating activities |
(2,052) |
780 |
|
|
Cash flow from investing activities |
|||
|
Purchase of tangible non-current assets |
(415) |
(188) |
|
|
Purchase of intangible non-current assets |
(69) |
(34) |
|
|
Purchase of subsidiary undertaking including costs |
(689) |
(502) |
|
|
Net cash flow from investing activities |
(1,173) |
(724) |
|
|
Cash flow from financing activities |
|||
|
Dividends paid to equity holders of parent |
(561) |
(279) |
|
|
Issue of shares |
6 |
44 |
|
|
Net cash flow used in financing |
(555) |
(235) |
|
|
Net decrease in cash and cash equivalents |
(3,780) |
(179) |
|
|
Cash and cash equivalents at 1 January |
5,691 |
1,349 |
|
|
Exchange adjustments |
(117) |
23 |
|
|
Cash and cash equivalents at 30 June |
1,794 |
1,193 |
NOTES TO THE 2009 HALF YEAR RESULTS
1 BASIS OF PREPARATION
The Group prepares its condensed consolidated financial statements in accordance with IFRS as adopted by the European Union and the statements have been prepared using the accounting policies set out in the Group's 2008 statutory accounts except as described below. For the purposes of this document the term IFRS includes International Accounting Standards and International Financial Reporting Interpretations (IFRICs).
The Half Year Report will be sent to shareholders and published on the Investor Relations section of the corporate website at www.kbcat.com. Further copies of the Half Year Report may be obtained from the Company Secretary, KBC Advanced Technologies plc, KBC House, 42-50 Hersham Road, Walton on Thames, Surrey, KT12 1RZ.
The financial information contained in this document does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006.
The comparatives for the full year ended 31 December 2008 are not the Group's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009:
• IAS 1 (revised), 'Presentation of financial statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement.
Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income).
The Group has elected to present two statements: an income statement and a statement of comprehensive income. The half year financial statements have been prepared under the revised disclosure requirements.
• IFRS 8, 'Operating segments'. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management
approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Following a review of the Group's internal management information, the previously reported operating segments of consulting and software are appropriate.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the board of directors.
The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2009, but are not currently relevant for the Group:
• IFRIC 13, 'Customer loyalty programmes'
• IFRIC 14, 'The limit on a defined benefit asset, minimum funding requirements and their interaction'
• IFRIC 15, 'Agreements for the construction of real estate'
• IFRIC 16, 'Hedges of a net investment in a foreign operation'
• IAS 39 (amendment), 'Financial instruments: Recognition and measurement'
The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial year beginning 1 January 2009 and have not been adopted early:
• IFRS 3 (revised), 'Business combinations' and consequential amendments to IAS 27, 'Consolidated and separate financial statements', IAS 28, 'Investments in associates', and IAS 31, 'Interests in joint ventures', are effective prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. Management is assessing the impact of the new requirements regarding acquisition accounting, consolidation and associates on the Group. The Group does not have any joint ventures.
The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently remeasured through the statement of comprehensive income. There is a choice on an acquisition-by-acquisition basis to measure the minority interest in the acquiree either at fair value or at the minority interest's proportionate share of the acquiree's net assets. All acquisition-related costs should be expensed. The Group will apply IFRS 3 (revised) to all business combinations from 1 January 2010, subject to endorsement by the EU.
• IFRIC 17, 'Distributions of non-cash assets to owners', effective for annual periods beginning on or after 1 July 2009. This is not currently applicable to the Group as it has not made any non-cash distributions.
• IFRIC 18, 'Transfers of assets from customers', effective for transfers of assets received on or after 1 July 2009. This is not relevant to the Group as it has not received any assets from customers.
2 EARNINGS PER SHARE
The calculation of basic earnings per share is based upon earnings of £0.91m (Jun 2008: £1.85m, Dec 2008: £3.59m) and on 56,281,000 (Jun 2008: 55,869,000, Dec 2008: 55,970,000) ordinary shares, being the weighted average number of ordinary shares in issue during the period after excluding shares owned by the KBC Advanced Technologies plc Employee Trust.
The calculation of diluted earnings per share is based upon earnings of £0.91m (Jun 2008: £1.85m, Dec 2008: £3.59m) and on 57,580,000 (Jun 2008: 56,966,000, Dec 2008: 57,060,000) ordinary shares, being the weighted average number of ordinary shares in issue during the period after excluding shares owned by the KBC Advanced Technologies plc Employee Trust and adjusted for the weighted average effect of share options outstanding during the period.
The calculation of basic underlying earnings per share is based upon earnings of £1.56m (Jun 2008: £2.00m, Dec 2008: £3.86m) and on 56,281,000 (Jun 2008: 55,869,000, Dec 2008: 55,970,000) ordinary shares, being the weighted average number of ordinary shares in issue during the period after excluding shares owned by the KBC Advanced Technologies plc Employee Trust.
3 UNDERLYING PROFIT
|
6 months to 30June 2009 £000 |
6 months to 30June 2008 £000 |
Year to 31December 2008 £000 |
|
|
Operating profit |
1,495 |
2,930 |
5,489 |
|
Amortisation of acquisition intangibles |
126 |
103 |
219 |
|
Research and development costs carried forward |
(69) |
(33) |
(127) |
|
Amortisation of research and development costs carried forward |
120 |
97 |
216 |
|
Redundancy costs |
794 |
- |
- |
|
2,466 |
3,097 |
5,797 |
|
|
Finance revenue |
2 |
10 |
14 |
|
Finance cost |
(29) |
(93) |
(112) |
|
Underlying profit before tax |
2,439 |
3,014 |
5,699 |
The basic underlying earnings per share calculated using this measure is 2.77p (Jun 2008: 3.57p, Dec 2008: 6.90p).
4 SEGMENTAL INFORMATION
The reporting format adopted is determined to be business segments as the Group's risks and rates of return are affected predominantly by differences in the services and products provided.
The operating businesses are organised and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
The consultancy segment delivers improved operational efficiency and financial performance through consulting services to owners and operators of oil refineries and to process industries worldwide.
The software segment produces and maintains process modelling and refinery wide simulation technology for the oil industry and other process industries worldwide.
|
Income statement for the six months ended 30 June 2009 |
Consultancy £000 |
Software £000 |
Unallocated £000 |
Group £000 |
|
External sales |
18,952 |
8,106 |
27,058 |
|
|
Direct project expenses |
(14,213) |
(1,260) |
(15,473) |
|
|
Depreciation and amortisation |
(149) |
(353) |
(502) |
|
|
Sales and marketing |
(2,689) |
(2,689) |
||
|
Facilities and communications |
(3,169) |
(3,169) |
||
|
Management and support services |
(3,730) |
(3,730) |
||
|
Trading profit (segment result) |
4,739 |
6,697 |
(9,941) |
1,495 |
|
Finance revenue |
2 |
2 |
||
|
Finance cost |
(29) |
(29) |
||
|
Profit before tax |
1,468 |
|||
|
Tax expense |
(558) |
|||
|
Profit for the period |
910 |
|||
|
Segmental net assets |
27,296 |
27,296 |
|
Income statement for the six months ended 30 June 2008 |
Consultancy £000 |
Software £000 |
Unallocated £000 |
Group £000 |
|
External sales |
21,508 |
2,941 |
24,449 |
|
|
Direct project expenses |
(13,129) |
(1,510) |
(14,639) |
|
|
Depreciation and amortisation |
(125) |
(252) |
(377) |
|
|
Sales and marketing |
(1,885) |
(1,885) |
||
|
Facilities and communications |
(2,212) |
(2,212) |
||
|
Management and support services |
(2,406) |
(2,406) |
||
|
Trading profit (segment result) |
8,379 |
1,306 |
(6,755) |
2,930 |
|
Finance revenue |
10 |
10 |
||
|
Finance cost |
(93) |
(93) |
||
|
Profit before tax |
2,847 |
|||
|
Tax expense |
(996) |
|||
|
Profit for the period |
1,851 |
|||
|
Segmental net assets |
22,380 |
22,380 |
Related Shares:
KBC.L