Pre-close Trading Update (4198V)
January 12 2012 - 2:00AM
UK Regulatory
TIDMKBC
RNS Number : 4198V
KBC Advanced Technologies plc
12 January 2012
12 January 2012
KBC Advanced Technologies plc
("KBC" or "the Group")
Pre-close Trading Update
In 2011 KBC delivered strong growth in consulting revenues and
as a result our forecast for the year ended 31 December 2011 is
broadly in line with our expectations, delivering over 20% profits
growth in the period.
The largest single item contributing to the increase in
consulting activity is the US$42m Profit Improvement Program with
Pemex Refinacion. Work at all six sites is now under way and the
project will continue at what is now the peak activity level until
the third quarter of 2012. A number of other projects are
contributing to high utilisation. These include Reliance Industries
in India, Bashneft in Russia, Total in Europe and several gas
projects in Australasia. Despite the Arab Spring, the tsunami in
Japan and the weak European refining market, we expect consulting
revenue for the year as a whole to be the highest since 2008.
The negotiation of several software license sales have extended
into 2012 from the last quarter of 2011 and we therefore expect a
healthy level of software sales in the first half of 2012. With the
arbitration process now behind us, we look forward to being able to
fully realise the potential of our software products and services
across all of the markets that we serve in 2012 and beyond.
Following strong cash generation in the second half of the year,
the Group's net cash position is expected to be around GBP5.5m at
the year end, up from the GBP2.6m held at 30 June 2011. The
comparable figure at 31 December 2010 was GBP4.5m. Our workload
backlog at the year end is expected to be around GBP49m.
As we start 2012 our consulting resources are highly utilised in
each of our three operating regions. The refining industry is still
in a state of transition, with markedly varying economic drivers in
different parts of the world that have intensified in recent
months, and should continue to provide consulting opportunities.
Other markets in which we operate, such as petrochemicals and gas
processing, remain stronger than refining and will also provide
additional opportunities in 2012. We therefore look forward to the
coming year confident that KBC will continue to deliver a strong
trading performance.
-Ends-
KBC Advanced Technologies plc
George Bright, Chief Executive
Nicholas Stone, Operations and Finance Director 01932 236314
Weber Shandwick Financial
Nick Oborne/Stephanie Badjonat 020 7067 0727
Cenkos Securities plc
Jon Fitzpatrick 020 7397 8900
Neil McDonald 0131 220 9771
About KBC:
For 30 years KBC's consultants have provided independent
strategic and engineering expertise to enable leading companies in
the global energy business and other process industries to manage
risk while maximising value from their assets.
In times of economic uncertainty and increasing environmental
pressure, KBC's proprietary methodologies and innovative tools
guide its clients' key strategic decisions, enabling them to
prioritise and implement initiatives that maximise return on
investment, and improve operational performance. KBC offers
Strategic and Market, Capital Investment, Operating, Organisational
and Environmental Solutions.
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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