KBC Kbc Adv.Tech.

 

TIDMKBC 
 
RNS Number : 5889L 
KBC Advanced Technologies plc 
14 January 2009 
 

 
 
 
 
 
 
 
 
14 January 2009 
 
 
KBC Advanced Technologies plc 
("KBC" or "the Group") 
 
 
Pre-Close Trading Update 
 
 
The Board of KBC is pleased to report that results for the year to 31 December 
2008 are expected to deliver strong growth in revenue and profits in line with 
market expectations. Workload backlog at the year end is expected to be around 
GBP37 million - an increase of more than 20% on the prior year's closing 
backlog, benefiting from strong sales in the year and the strength of the US 
Dollar and Euro relative to Sterling. 
 
 
This strong performance has been reflected in cash generation. The Group's cash 
resources are expected to have increased around fourfold to around GBP5.4 
million from net cash of GBP1.3 million at 31 December 2007 and net cash of 
GBP1.2 million at 30 June 2008. 
 
 
The last quarter saw an increase in software sales with further success in China 
and the Middle East. Our flagship product Petro-SIM(TM) has now been sold to 
around 100 sites. Much of the revenue related to these sales will be recognised 
in the first half of 2009, following the installation of the software at client 
sites. Despite the turmoil in the world's financial markets, in the second half 
of 2008 we saw a robust level of activity driven by the capital investment plans 
within the refining industry. This work included our appointment as adviser to 
PetroSA for a new refinery project in South Africa; receipt of a 
significant success fee for our work on the sale of Albania's refining assets 
and continued work on various capital projects in the Middle East, Korea and 
South America. 
 
 
The current uncertain environment makes forecasting more difficult than usual 
but it is likely that the level of capital investment work will decline. 
However, our successful strategy to reposition the Group's offerings enables us 
to provide a range of services that assist clients with both their capital 
expenditure (CapX) and operating (OpX) programmes/budgets. This will be of 
particular importance during 2009 as we expect to see a swing towards OpX work 
as clients seek improvements in processing margins in the current oil price and 
product demand environment. This should help to offset the impact of any 
reductions in CapX work. 
 
 
We enter 2009 with cautious optimism. We have the benefit of a strong pipeline 
of software revenues during the first quarter and we are taking a prudent 
approach to our cost base, which positions us to continue to grow the business 
during 2009, although at a more modest rate than has recently been the case. 
 
 
-Ends- 
 
 
 
 
+---------------+---------------+ 
| KBC           |               | 
| Advanced      |               | 
| Technologies  |               | 
| plc           |               | 
+---------------+---------------+ 
| George        |  01932 236314 | 
| Bright,       |               | 
| Chief         |               | 
| Executive     |               | 
| Nicholas      |               | 
| Stone,        |               | 
| Operations    |               | 
| and           |               | 
| Finance       |               | 
| Director      |               | 
+---------------+---------------+ 
|               |               | 
+---------------+---------------+ 
| Weber         |               | 
| Shandwick     |               | 
| Financial     |               | 
+---------------+---------------+ 
| Nick          | 020 7067 0700 | 
| Oborne/Clare  |               | 
| Perks         |               | 
+---------------+---------------+ 
|               |               | 
+---------------+---------------+ 
| Arbuthnot     |               | 
| Securities    |               | 
+---------------+---------------+ 
| James         | 020 7012 2000 | 
| Steel/Antonio |               | 
| Bossi/Katie   |               | 
| Shelton       |               | 
+---------------+---------------+ 
 
 
 
 
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(TM) 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. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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