16th Jul 2007 07:01
Gas Turbine Efficiency PLC16 July 2007 16 July 2007 GTE Industrial Strategy Update GTE Diversification Efforts Pay Off -- Industrial Revenues expected to be Up 600% Gas Turbine Efficiency plc ("GTE" or "the Group"), a leading designer andmanufacturer of advanced cleaning, performance monitoring and fluid and controlsystems for gas turbines, is pleased to announce a significant increase inIndustrial based revenues and backlog for 2007. After successfully establishing the business in the aviation segment with ourexclusive partner, Pratt & Whitney, GTE is now seeing similar success in theindustrial segment. This is evident in the tremendous growth seen in the firsthalf of 2007. Industrial revenues are expected to increase over 600% to $5.7m(H1 2006: $0.8m). As a result, the Group expects its total revenue in the first half 2007 to over300% to $9.3m compared with the corresponding period last year (H1 2006: $2.1m).On 30 June 2007, the backlog for the full year 2007 was $13.9m, approximately,450% ahead of corresponding period last year (H1 2006: $2.5m). GTE has achieved this success by following a bold strategy to extend thebusiness model with four OEM qualifications in parallel. The Group has alsoexpanded its solutions portfolio with the acquisition of Control Center, LLC andARES Technology, LLC this year. The combined strategy of acquisitions alongsideorganic Research & Development has significantly expanded GTE's core productlines as seen below: 2006 2007 Compressor Cleaning Systems Compressor Cleaning Systems Compressor Power Augmentation Fuel Systems And Metering Control Systems and Panels Combustion Monitoring Systems Aftermarket Parts / Supply Chain On-Site Installation Services Outage Repairs GTE's enhanced capabilities will help the Group develop in three key ways.Firstly, it moves GTE up the 'value chain' and closer to integrated solutions,positioning the Group for long term growth in the Gas Turbine aftermarketsegment which is valued at up to $10 billion. Secondly, it opens up additionalhigh value products to sell through existing channels and customer relationshipsand finally, it creates a broader technology team and patent portfolio. Discussions with several major OEMs to sign long term commercial contracts haveprogressed well and in some cases have been expanded to include several newproduct lines. The five year agreement with Solar, a Caterpillar company alongwith the three year extension of our exclusive agreement with Siemens, AB andthe recent contract extension with Rolls Royce are a validation of our long termstrategy. The Industrial segment includes Power Generation as well as Oil & Gas industrieswhich tend to have large, global OEMs and end users which highlight theimportance of GTE's solutions being executed globally. To better align withthese customers, GTE successfully expanded its global footprint. During 2006, weopened up an office in St. Petersburg, Russia and added a strong presence in AbuDhabi through our agent relationship with NAMA. Future expansion is alsoexpected in established legal entities in Singapore, Norway, and the MiddleEast. Looking forward, GTE plans to continue this successful strategy. The Group willlook to bolster its technology breadth and development through organic R&D andopportunistic acquisitions. The Group will continue to focus on high valuesolutions in the Gas Turbine aftermarket segment and move to higher valueintegrated product and service solutions. The demanding qualification negotiations with key industrial global OEMs areprogressing well and we will update the market later in the year. Steven Zwolinski, Chief Executive Officer of GTE, commented: "The benefits ofGTE's long term strategy for the industrial segment of the business has resultedin tremendous progress in the first half of 2007 positioning the business forlong term growth. The integration of Control Center, LLC 2007 and AresTechnology, LLC has exceeded expectations, significantly enhancing the Group'scapabilities." Enquiries: Gas Turbine Efficiency plcSteven Zwolinski, CEO +46 8 546 10 528 Libertas CapitalAamir Quraishi, Charles Goodfellow +44 20 7569 9650 Corfin CommunicationsNeil Thapar, Harry Chathli +44 20 7929 8989 About GTE Gas Turbine Efficiency plc, whose shares are traded on London Stock Exchange'sAIM market (Ticker: GTE), designs, manufactures and markets advanced integratedsolutions for environmental, process and asset optimisation of gas turbinesprimarily in the aerospace, industrial and oil & gas sectors. These solutionsinclude cleaning systems, performance monitoring, fluid and control sub-systemsthat improve turbine performance and availability, fuel efficiency and partslife, resulting in increased profits for our clients and a cleaner environment.The Group sells its products to blue chip customers worldwide from operationalcentres in Europe and the USA. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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