4th Mar 2005 17:29
KBC Advanced Technologies plc04 March 2005 4 March 2005 KBC Advanced Technologies plc ('KBC' or 'the Company') Placing of 2,403,318 ordinary shares for £805,112 KBC, the leading independent consulting and technology group to the oil refiningand process industries, announces that on 4 March it has conditionally placed2,403,318 new ordinary shares of 2.5p each in the Company (representingapproximately 5 per cent of the existing issued share capital of the Company)with a number of its existing institutional shareholders at a price of 33.5peach, being the middle market price on 4 March 2005 at the time of the placing. Current tradingIn the announcement of its final results for the year ended 31 December 2004released on 1 March 2005, the Company stated that "we expect to grow ourrevenues in the first half of the year such that we will return to profitabilityin the second quarter and move towards a break even position overall at theoperating level for the first half year. The continuation of this growth in thesecond half of the year should enable us to deliver an operating profit for theyear in line with current market expectations. We already have contractedrevenues for close to half of this target and, although sales have yet toconfirmed for the balance, we are confident that sufficient opportunities existin the current climate." Reasons for the placing and use of proceeds2004 was a year of transition for KBC, with a focus on securing access to itssoftware and building a stable platform for the resumption of revenue growth andprofitability in 2005. Given the positive medium-term economic environment forthe downstream oil and gas industry, KBC sees significant opportunities to workwith both refinery owners and contracting companies to develop projects forrefinery operators which both minimise their risk and deliver high return oncapital. The proceeds of the placing will provide KBC with additional resourcesto help it to pursue these opportunities and for general working capitalrequirements. Peter Close, Chief Executive of KBC, said: "This placing will enhance ourability to exploit the opportunities we see in the positive market environmentfrom which our customers are benefiting. It is also a significant indication ofsupport by our major shareholders for our plans for building the business in2005 and beyond." Background information on the placingThe placing is conditional on the new ordinary shares being admitted to theofficial list of the UK Listing Authority and to trading on the London StockExchange's market for listed securities ("Admission"). The new ordinary shareswill, when issued and fully paid, rank pari passu in all respects with theexisting ordinary shares in the Company. Application for Admission is being madeto the UK Listing Authority and the London Stock Exchange and it is expectedthat Admission will become effective and dealings on the London Stock Exchangewill commence on 11 March 2005. The new ordinary shares are expected to becredited to CREST accounts by 11 March 2005. -Ends- For further information please contact: KBC Advanced Technologies plc 01932 236314Peter Close, Chief ExecutiveNicholas Stone, Finance Director Arden Partners Limited 020 7398 1632Richard Day Weber Shandwick Square Mile 020 7067 0700Rachel Taylor/Yvonne Alexander Notes to Editors: KBC Advanced Technologies plc is the leading independentprocess engineering group delivering improved profitability through consultingservices and practical solutions to owners and operators of oil refineries andother clients in the process industries worldwide. KBC analyses plant operationsand management systems, recommends changes that deliver material and measurableimprovements in profitability and provides implementation services to assistclients in realising measurable financial improvements. KBC also forecasts crudeand petroleum products prices, and offers economic and pricing studies focusedon the future outlook for the oil industry. KBC works with its clients both toimplement its recommendations and to realise and monitor the resultingimprovements in profits on a continuing basis. In carrying out this work itsconsultants make extensive use of the process simulation software tools whichKBC has developed. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
KBC.L