KBC.L Regulatory News (KBC)

Embargoed until 0700 hrs 17 June 2015

KBC Advanced Technologies plc

("KBC" or "the Group")

AGM Statement

At KBC's AGM to be held at 3.00 pm today Ian Godden, Chairman, will make the following statement.

"KBC has adjusted successfully to the changing and difficult energy sector market conditions by concentrating on key regions where we believe growth will continue or emerge and by proactively restructuring the Company's cost base. We have, at the same time, continued to progress our long term strategy of investing in software and in the upstream business as well as larger and broader consulting assignments. 

One of the growth regions for KBC is the Middle East and North Africa (MENA) where investment in 2014 has resulted in over £9m of contract awards during the first five months of 2015. This includes several major contracts to support national oil and gas companies in Saudi Arabia, Kuwait, the United Arab Emirates, Oman and Jordan.

In the first half of 2015 we reduced our worldwide headcount by about 10%. The main emphasis of this restructuring was in North America, where we closed our New Jersey office. The net effect of these steps is an annualised saving of about £3.4m with a one-off cost of £800,000 in 2015.

Our two acquired software businesses, Infochem and FEESA, have performed well, encouraging oilfield service companies to take a more active interest in our products as a new sales channel for KBC. For example, Kongsberg and KBC recently signed a joint reseller agreement for their upstream software and services. Our business, brand and reputation is growing in the upstream sector and we are well positioned to help the sector with much needed efficiency initiatives.

The appointment of Eric Dodd, our new CFO, in May 2015 completed the successful transition to a new executive leadership team. The new CEO, Andrew Howell, has reorganised the Group and established a strengthened executive team to drive the business forward over the next five years with a clear and strong strategy for the company.

Whilst market conditions are likely to remain uncertain for the foreseeable future, our steps to rightsize the Company's cost base and focus on growth markets give the Board confidence that KBC will meet its expectations for 2015."

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Notes to Editors:

KBC is a leading consultancy and software provider to the global hydrocarbon processing industry. With over 30 years of experience, KBC combines industry leading technology with experienced engineers and operations personnel using robust methodologies to create personalised, sustainable solutions for its clients. For more information, visit www.kbcat.com