RNS No 3168k
KBC ADVANCED TECHNOLOGIES PLC
6th August 1998
KBC Advanced Technologies plc
("KBC" or "the Company")
Interim Results for the Six Months to 30 June 1998
FINANCIAL HIGHLIGHTS
6 months 6 months Year
to to to
30.6.98 30.6.97 31.12.97
Unaudited Unaudited Audited
Turnover #18.7m #15.9m #33.1m
Operating profit #3.3m #3.4m #7.7m
Profit before tax #3.6m #3.6m #8.2m
Profit after tax #2.3m #2.2m #5.1m
Earnings per 4.89p 5.08p 11.31p
share
* Turnover up 17% despite difficult North American
market
* Positive cash flow from operations
* Seventh refinery Profit Improvement Program signed up
in Japan
* Integration of Profimatics models' business on track
* First interim dividend of 1.3p
Commenting on the results Michael Press, Chairman of KBC,
said: "As announced in late June, the Company's operations
and financial results have been affected by difficult
trading conditions in the North American market. While
these conditions continue to impact the market, KBC's
order intake is showing signs of improvement and prospects
for the second half look more favourable. It is difficult
to make an accurate prediction for the full year to 31
December 1998 against this unusual market background.
However, at this stage we continue to believe that the
results for the full year will be ahead of the prior year."
Enquiries:
KBC Advanced Technologies plc 6 August 1998: 0171 583 4567
Michael W Press, Chairman Thereafter: 01932 856622
Wayne P C Hutchinson, Chief Operating Officer
Edward J Uren, Finance Director
Square Mile Communications Ltd 0171 583 4567
Tim Jackaman/Rachel Gilman/Kirsty Hall
Notes to Editors: KBC Advanced Technologies plc is a
leading independent process engineering group, providing
specialised consultancy and support services to enable oil
refiners to improve operational efficiency and
profitability. KBC has a broad spread of clients ranging
from large integrated oil companies to small independent
refiners.
KBC Advanced Technologies plc
("KBC" or "the Company")
Interim Results for the Six Months to 30 June 1998
CHAIRMAN'S STATEMENT
RESULTS
I am pleased to report that the Company has achieved
further growth during the first half of 1998 with turnover
up 17% to #18.7m compared to the same period last year
(1997: #15.9m) and 9% ahead of the second half of 1997.
However, as was indicated in the trading statement issued
on 25 June 1998, the rate of growth has been lower than
anticipated and resourced. As a result, operating profit
for the six months ended 30 June 1998 reduced marginally
to #3.3m (1997: #3.4m) and profit before tax was unchanged
at #3.6m (1997: #3.6m).
Earnings per share decreased to 4.89p (1997: 5.08p). The
fall principally reflects the increase in the average
number of shares as a result of shares issued at flotation
in March 1997. The under-utilisation of available
consulting capacity has caused operating margin to
decrease to 17.7% (1997: 21.7%). However, gross sales
margins remain strong.
The Company continued to generate cash. Net cash from
operations during the first half of 1998 was #3.48 million
and at the end of June the Company had cash balances of
#10.7 million.
DIVIDEND
An interim dividend of 1.3p per share will be paid on 1
October 1998 to those shareholders on the register at the
close of business on 11 September 1998. The company
intends to pursue a progressive dividend policy with
dividend payments being apportioned approximately one
third at the interim stage and two thirds at the full year
stage.
OPERATIONAL REVIEW
With a strong order book during the second half of 1997
and at year-end, KBC continued to build its resource base
to meet expected growth in demand and position the Group
for the future. While the business has continued to grow,
the rate of growth has been slower than anticipated.
Although costs have been kept under close review, the
combination of lower growth during this period and
increased resource has had a depressing effect on profits.
The main factors affecting the market place have been the
consolidation and restructuring in the North American
refining market coupled with the unprecedented fall in oil
prices. These factors adversely impacted KBC's order
intake during the period.
The downstream industry in North America continues to
undergo significant restructuring and consolidation.
While this is a positive trend for the Group in the longer
term, the evaluation and implementation of organisational
and structural changes in enlarged refining groups has
deferred the implementation of Profit Improvement Programs
(PIPs) at US refineries.
Normally KBC's oil refining industry sales prospects are
relatively insensitive to oil price. However, the
unprecedented fall in oil prices during 1998 has led to
significant cutbacks in the discretionary spending of
integrated oil companies in both North and South America.
In Europe and the Middle East trading has remained strong
and further progress during the remainder of the year is
expected. In Asia-Pacific, despite the fact that energy
companies in several countries are limited in the purchase
of services requiring foreign currency, KBC has made
significant progress, particularly in the key Japanese
market where a seventh refinery has just signed up for a
PIP. These areas have exceeded expectations and we have
been successful in utilising our consultants based in
North America in delivering PIPs in other markets.
The Continuing Services area of our consulting practice is
an increasingly important part of the business as it
extends the length of the customer relationship. Areas of
particular growth during 1998 are Reliability and
Maintenance and the improvement of clients' linear
programming models used for planning refinery operations.
The integration of the Profimatics models' business
acquired at the end of 1997 is proceeding according to
plan.
KBC's strategy remains to expand through both organic
growth and selective acquisitions.
MANAGEMENT
In order to ensure that the Group is best able to
capitalise on the growth opportunities in its
international network, the management team is being
developed further. Wayne P C Hutchinson is appointed
Chief Operating Officer of KBC. In this new role Mr.
Hutchinson will have responsibility for the day-to-day
operations of the Group and will report directly to
Michael Press, Executive Chairman. Mr. Hutchinson, who
joined the Group in 1996, was previously KBC's President
for Europe & Asia and has been responsible for the
successful development of the business in this area.
Prior to joining KBC, he was President of Honeywell Hi-
Spec Solutions, a global business similar in size to KBC.
He has extensive international experience, having lived
and worked in nine countries.
Peter J Close, previously Chief Executive Officer of KBC,
becomes Deputy Chairman of the Group. In this new role
Mr. Close will be responsible for the development of new
initiatives, such as further development of the energy
practice, and the assurance of quality throughout the
Group. Mr. Close will also continue to play a key role in
sales and strategy. These changes take place with
immediate effect.
PROSPECTS
As announced in late June, the Company's operations and
financial results have been affected by difficult trading
conditions in the North American market. While these
conditions continue to impact the market, KBC's order
intake is showing signs of improvement and prospects for
the second half look more favourable. It is difficult to
make an accurate prediction for the full year to 31
December 1998 against this unusual market background.
However, at this stage we continue to believe that the
results for the full year will be ahead of the prior year.
The outlook for the overall business remains positive and
our strategy of working closely with our oil refining
partners to identify and implement programs to improve
their profitability continues to be well received.
Michael W Press, Chairman 6 August 1998
Enquiries:
KBC Advanced Technologies plc 6 August 1998: 0171 583 4567
Michael W Press, Chairman Thereafter: 01932 856622
Wayne P C Hutchinson, Chief Operating Officer
Edward J Uren, Finance Director
Square Mile Communications Ltd 0171 583 4567
Tim Jackaman/Rachel Gilman/Kirsty Hall
KBC Advanced Technologies plc
Group Profit and Loss Account
for the Six Months to 30 June 1998
Unaudited Unaudited Audited
6 months 6 months 12 months
to 30 June to 30 June to 31 December
1998 1997 1997
#'000 #'000 #'000
TURNOVER 18,701 15,923 33,106
Staff costs (7,098) (5,556) (11,666)
Depreciation (630) (351) (784)
Other operating charges (7,658) (6,567) (12,954)
--------- --------- ---------
OPERATING PROFIT 3,315 3,449 7,702
Interest receivable 300 174 499
Interest payable - (2) (3)
--------- --------- ---------
PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION 3,615 3,621 8,198
Taxation on profit on
ordinary activities (1,319) (1,376) (3,108)
--------- --------- ---------
PROFIT ON ORDINARY
ACTIVITIES AFTER TAXATION 2,296 2,245 5,090
Dividends - equity interests (615) - (1,211)
--------- --------- ---------
RETAINED PROFIT FOR THE
PERIOD 1,681 2,245 3,879
========= ========= =========
Earnings per share
- basic 4.89p 5.08p 11.31p
- fully diluted 4.65p 4.62p 10.31p
KBC Advanced Technologies plc
Group Balance Sheet
as at 30 June 1998
Unaudited Unaudited Audited
at 30 June at 30 June at 31 December
1998 1997 1997
#'000 #'000 #'000 #'000 #'000 #'000
FIXED ASSETS
Intangible assets 1,853 - 1,996
Tangible assets 2,335 1,478 1,903
Investments 358 2 358
-------- -------- --------
4,546 1,480 4,257
CURRENT ASSETS
Debtors 8,564 5,235 7,229
Cash at bank
and in hand 10,671 9,844 9,205
-------- -------- --------
19,235 15,079 16,434
CREDITORS: amounts
falling due within
one year (9,382) (4,008) (7,961)
NET CURRENT ASSETS 9,853 11,071 8,473
------- ------- ------
TOTAL ASSETS LESS
CURRENT LIABILITIES 14,399 12,551 12,730
CREDITORS: amounts
falling due after
more than one year (2) (4) (2)
-------- -------- -------
14,397 12,547 12,728
======== ======== =======
CAPITAL AND RESERVES
Called up share capital 1,184 1,144 1,164
Share premium account 5,575 5,371 5,537
Capital reserve 24 24 24
Merger reserve 147 147 147
Profit and loss account 7,467 5,861 5,856
-------- -------- -------
SHAREHOLDERS' FUNDS
- equity interests 14,397 12,547 12,728
======== ======== =======
KBC Advanced Technologies plc
Group Cash Flow Statement
for the Six Months to 30 June 1998
Unaudited Unaudited Audited
6 months 6 months 12 months
to 30 June to 30 June to 31 December
1998 1997 1997
#'000 #'000 #'000
Operating profit 3,315 3,449 7,702
Depreciation and amortisation 630 351 784
Loss on disposal - - 5
(Increase)/decrease in
debtors (1,337) 589 (1,385)
Increase in creditors 853 551 2,362
Exchange difference 14 7 116
-------- -------- --------
160 1,498 1,882
-------- -------- --------
Net cash from operations 3,475 4,947 9,584
-------- -------- --------
Returns on investments and
servicing of finance
Interest received 300 174 499
Interest paid - (2) (3)
--------- -------- --------
300 172 496
--------- -------- --------
Taxation (131) (1,552) (2,349)
--------- -------- --------
Capital expenditure and
financial investment
Payments to acquire
fixed assets (991) (426) (1,287)
--------- -------- --------
Acquisitions and disposals
Purchase of business - - (3,727)
--------- -------- --------
Equity dividends paid (1,223) - -
--------- -------- --------
Management of liquid
resources (3,237) (2,094) (3,181)
--------- -------- --------
Financing
HP paid (1) (13) (13)
Shares issued 57 5,357 5,543
Purchase of own shares - - (356)
--------- -------- --------
56 5,344 5,174
--------- -------- --------
(Decrease)/increase in cash
in the period (1,751) 6,391 4,710
========= ======== ========
Reconciliation of Net Cash Flow
1998 1997 1997
(Decrease)/increase in cash
in the period (1,751) 6,391 4,710
Translation difference (20) 47 2
--------- -------- -------
Movement in net cash in the
period (1,771) 6,438 4,712
Investment in short term
deposits 3,237 2,094 3,181
Net cash at start of period 9,205 1,312 1,312
--------- -------- -------
Net cash at end of period 10,671 9,844 9,205
========= ======== =======
KBC Advanced Technologies plc
Notes
1. Basis of preparation
These unaudited interim financial statements,
which do not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985, have
been prepared using the accounting policies set out in
the Group's 1997 Statutory Accounts.
The Statutory Accounts for the year ended 31 December
1997 received an unqualified auditor's report and have
been delivered to the Registrar of Companies.
The interim report will be sent to shareholders.
Further copies may be obtained from the Company
Secretary, KBC Advanced Technologies plc, KBC House,
Churchfield Road, Weybridge, Surrey, KT13 8DB.
2. Earnings per share
The calculation of earnings per share is based upon
earnings of #2,296,000 (1997: #2,245,000) and on
46,962,033 (1997: 44,211,170) ordinary shares, being
the weighted average number of ordinary shares in
issue during the period.
The fully diluted earnings per share is based upon
51,496,072 (1997: 48,963,870) ordinary shares allowing
for the full exercise of outstanding purchase options,
and adjusted earnings of #2,393,000 (1997: #2,264,000).
Earnings have been adjusted by adding interest deemed
to be earned from 2.5% consolidated stock on the
proceeds of such share issue.
END
IR FCPCQFDKDKFK
Kbc Adv.Tech. (LSE:KBC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Kbc Adv.Tech. (LSE:KBC)
Historical Stock Chart
From Jul 2023 to Jul 2024
