KBC.L Regulatory News (KBC)

9 Jan 2007 07:01

KBC Advanced Technologies plc09 January 2007 Embargoed until 0700 9 January 2007 KBC Advanced Technologies plc ('KBC' or "the Company") Trading Update confirms Sustained Turnaround in Financial Performance KBC, a leading independent consultant to the oil industry, announces a tradingupdate in relation to the preliminary results for the year ended 31 December2006 which will be announced on 15 March 2007. The first half of 2006 saw a significant turnaround in the financial performanceof the business, in both contracts awarded and trading profitability. The Boardis pleased to confirm that this improvement continued in the second half of theyear as anticipated and has resulted in the delivery of sustained profitabilitycompared to the losses made in 2005. As a consequence the Company is confidentof delivering an overall financial performance in line with market expectations. The sustained improvement in trading is the result of strong growth in contractawards that started in the second half of 2005 and was maintained throughout2006. Total contract awards for 2006 were more than £35m, up by 10% on 2005. Therevenue taken in 2006 from the contract award backlog is expected to show anincrease of more than 20% over 2005 and result in the backlog increasing byaround 50% from £18m at the start of 2006 to around £27m going into 2007. Thebacklog figure for 2007 includes TTS which was acquired in February 2006 with abacklog of around £8m. Significant contract awards since the announcement of the Company's half-yearresults on 7 September include the following: •A Strategic Alliance agreement with Petroliam Nasional Berhad (PETRONAS) in Malaysia for the provision of specialised consulting services, software tools and methodologies for an initial period of two years; •Retention by Citadel Capital as Technical Advisor to its expansion project involving a broad range of Capital Excellence (CapX) services supporting the construction of a new hydrocracking complex in Egypt; •Contracts with Valero Refining Company in the US for developing operating procedure manuals by TTS, and using Veritech services for energy and yield improvements; •Four traditional KBC Profit Improvement Programs in the Middle East; •A Petro-SIM sale to Saudi Aramco at their Ras Tanura refinery; and •Further energy reduction and 'Deepcut' technology projects with Sinopec refineries in China. The market conditions for KBC's products and services are extremely positive ina world facing a shortage of refining capacity for some years to come. As aconsequence KBC's consulting resources have been extremely busy and effectivelyat full utilisation during the last quarter of 2006 and will remain so duringthe first quarter of 2007. The Board sees no reason for this to change in thenear future and therefore looks forward to continuing growth in the order bookand profitability during 2007. - Ends - For further information please contact: KBC Advanced Technologies plcGeorge Bright, Chief Executive 01932 236314Nicholas Stone, Operations and Finance Director Arden Partners LimitedRichard Day 020 7398 1632 Weber Shandwick | Square MileRichard Hews / Rachel Taylor 020 7067 0700 Notes to Editors: KBC Advanced Technologies plc, a leading independent consulting, processengineering and software group, delivers improved operating performance to theoil refining, petrochemical, and other process industries worldwide. We provideprocess consulting, strategic planning advice, energy price forecasting andmarket analysis, economic studies, capital project services, and training tohelp clients achieve their business objectives and improve their competitiveposition. KBC's human performance improvement division, TTS Performance Systems,provides organisational effectiveness services, training programmes, operationsmanuals, and personnel development services. KBC's consultants recommend changesfor material and measurable improvements in profitability. To assist clients inrealising such improvements, KBC provides implementation services and softwaresolutions, including the KBC SIM models and Petro-SIM (TM) for processoptimisation, and the Linnhoff March and Veritech energy optimisation softwarepackages. Formed in 1979, KBC has offices in the UK, USA, Canada, Singapore, theNetherlands, Russia, China, and Japan. For more information, visitwww.kbcat.com. This information is provided by RNS The company news service from the London Stock Exchange