Sign In
24 Jan 2013 07:00
Embargoed until 0700 hrs 24 January 2013
KBC Advanced Technologies plc
("KBC" or "the Group")
Pre-close Trading Update
The last quarter of 2012 was very strong for KBC, culminating in the award of the US$100m consulting and software contract with EP PETROECUADOR (EPP). Software applications and training materials comprising the technology transfer package were delivered to EPP in December 2012 and delivery of consulting services milestones will take place over the next four years. As a result, the Board is pleased to announce that the results for the year to 31 December 2012 are expected to be slightly ahead of current market expectations, prior to an exceptional provision of £0.5m, which reflects the committed costs of implementing a restructuring initiative during 2013.
The cash balances at the year-end are expected to be in excess of £9m, excluding an advance payment received from EPP, showing a strong recovery during the final quarter. Net cash at the year end is expected to be approximately £1m.
Restructuring of the consulting business is progressing well under the new leadership team and a further update will be provided in the results announcement during March 2013.
The year to December 2012 saw a strong performance from the software business, including Infochem which was acquired in June 2012. Significant progress has been made in developing an enhanced range of products for the downstream, upstream and gas production markets. During the fourth quarter Petro-SIM Production™ was launched which incorporates Infochem's intellectual property into the Petro-SIM™ platform and enables its use in the upstream market. Several trials are currently underway with major independents, national oil companies and engineering contractors.
We enter 2013 with a strong order book, new products and a business that is better able to deliver profitable growth from both its consulting and software operations.
-Ends-
KBC Advanced Technologies plc | |
Ian Godden, Chairman | +44 (0)1932 236314 |
Caroline Brown, Chief Financial Officer | +44 (0)1932 236314 |
Cenkos Securities plc | |
Bobbie Hilliam/Max Hartley/Callum Davidson | +44 (0)20 7397 8900 |
Weber Shandwick Financial | |
Nick Oborne/Stephanie Badjonat/Robert Cook | +44 (0)20 7067 0700 |
Notes to Editors:
KBC is a leading consultancy and software provider to the global energy, process and natural resources sectors. With over 30 years of experience, operating out of 14 global locations, KBC combines best-in-class software with experienced engineers and operations personnel using robust methodologies to create world class solutions for its clients. For more information, visit www.kbcat.com.
Follow the stocks
