6th Jul 2009 07:00
6 July 2009
KBC Advanced Technologies plc
("KBC" or "the Group")
Trading Update
KBC is pleased to announce the following trading update in relation to the interim results for the six months ended 30 June 2009 that will be released in early September. As indicated in our last update in May, trading in the first half of this year has been running at a lower rate than last year. We have seen evidence of improvement over the last month and, with the benefit of the cost savings programme implemented during the second quarter, we continue to expect the full year results to be in line with current market expectations.
Contract awards during the first six months are below those for the same period last year at around £24 million (2008: £27 million) and we expect workload backlog to be around £37 million at 30 June, marginally down from £39 million at the end of 2008. Within this awards total, capital project work has been stronger than we anticipated at the beginning of the year, especially in Latin America and Asia, while the increase in demand for operational performance improvement services has been slower than we originally expected, with clients reluctant to commit to expenditure. As previously indicated, we have taken action to reduce our cost base and have implemented measures to deliver annualised savings of around £2.6 million, of which £1.8 million is likely to be realised during 2009, at a cost of £0.8 million. These costs will be charged against the results for the first half of 2009.
The pipeline of sales contract opportunities remains strong and is evidenced by a total of more than £9 million of awards closed in June. We also have a number of contracts at advanced stages of negotiation that are expected to close in the third quarter and contribute to this year's result. This pick up in activity, together with a more robust outlook for oil prices in the short and medium term, provides a better environment and means that, subject to closing the contract awards as anticipated, we continue to expect a stronger operational performance in the second half of the year.
-Ends-
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KBC Advanced Technologies plc |
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George Bright, Chief Executive Nicholas Stone, Operations and Finance Director |
01932 236314 |
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Weber Shandwick Financial |
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Nick Oborne/Clare Thomas |
020 7067 0700 |
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Arbuthnot Securities |
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James Steel/Antonio Bossi/Katie Shelton |
020 7012 2000 |
Notes to Editors:
KBC Advanced Technologies plc, a leading independent consulting, process engineering and software group, delivers improved operating performance to the oil refining, petrochemical, and other process industries worldwide. We provide process consulting, strategic planning advice, energy price forecasting and market analysis, economic studies, capital project services, and training to help clients achieve their business objectives and improve their competitive position. The KBC human performance improvement division provides organisational effectiveness services, training programmes, operations manuals, and personnel development services. Our consultants recommend changes for material and measurable improvements in profitability. To assist clients in realising such improvements, KBC provides implementation services and software solutions, including the KBC SIM models and Petro-SIM™ for process optimisation, and energy optimisation software packages. Formed in 1979, KBC has offices in the UK, USA, Canada, Singapore, the Netherlands, Russia, China and Japan. For more information, visit www.kbcat.com.
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