KBC Kbc Adv.Tech.

 

TIDMKBC 
 
RNS Number : 1803S 
KBC Advanced Technologies plc 
13 May 2009 
 

 
 
 
 
 
 
13 May 2009 
 
 
KBC Advanced Technologies plc 
("KBC" or "the Group") 
 
 
Trading Update 
 
 
In March this year we referred to the challenges ahead of us in 2009 as the oil 
refining industry in which most of our clients operate saw rapidly declining 
margins. This has led to capital projects being reconsidered or scaled back and 
companies are deferring decisions and looking to cut costs. These market 
conditions have provided the many consulting opportunities that we expected, but 
the process of converting these into contract awards has been slower than hoped. 
Thus, although our pipeline still looks very healthy for the second half of 
2009, our second quarter consultant utilisation is likely to be lower than 
expected. 
 
 
Revenue for the first four months of this year is running ahead of 2008 but our 
higher cost base resulting from the investment made last year in our capacity 
and capability, as well as unfavourable changes in the Euro/Sterling exchange 
rate, have reduced profitability. Software revenue has been strong, as 
anticipated, but insufficient to outweigh the lower than expected consulting 
performance. As a result we expect the first half results for 2009 to fall short 
of those delivered in the same period of 2008. Although we expect the second 
half of the year to improve, we do not believe this will be sufficient to 
compensate for the first half shortfall. 
 
 
We are taking steps to reduce costs in some areas of our business to better fit 
our current revenue streams. However, as we continue to expect consulting 
workload to increase over the next few months as the timing issues on some of 
our project opportunities are resolved, we will maintain the ability to service 
this work when it is confirmed. 
 
 
Over the last couple of years we have reviewed a number of potential acquisition 
opportunities in related service areas but have been unable to justify the 
prices sought and therefore concluded that better returns were available from 
internal investment. We are pleased to announce the recent successful extension 
of our strategic consulting capability in Houston through the recruitment of 
former employees of Jacobs Consulting and the establishment of a new service 
offering in the UK through the recruitment of former AMEC employees with 
experience in environmental consulting and assessment. Whilst this investment 
through the profit and loss account will cause some additional short-term 
pressure on our expected first half results, we expect positive returns to come 
through as these parts of our business are developed. We continue to monitor 
opportunities to strengthen the business through selective acquisition and 
recruitment. 
 
 
-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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