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Kentz Corporation Limited (the "Company")
London, 18 January 2013 - Kentz Corporation Limited (LSE: KENZ), the holding company of the Kentz engineering and construction group, announces a pre-close trading update ahead of its results for the year ended 31 December 2012, due to be published on 25 March 2013.
· Earnings per share (diluted) for 2012 in line with analyst consensus, reflecting strong growth on 2011
· Backlog of US$2.57 billion at the end of December 2012, up 7% from December 2011
· Order intake of US$1.72 billion to the end of December 2012
· Pipeline of prospects increased 32% to US$13.2 billion at December 2012 (December 2011: US$10.0 billion)
· Net cash balance of approx. US$220 million at the end of 2012
Christian Brown, Chief Executive Officer of Kentz commented:
"2012 was another successful year for Kentz in which the Company again delivered strong earnings growth. The outlook for 2013 continues to be positive with backlog growing to US$2.57 billion and over 65% of target 2013 revenues under contract.
"Our success in growing our backlog and sales pipeline is underpinned by our ability to successfully execute projects and secure repeat business from our major clients. Against this backdrop we have also added further opportunities to our pipeline of prospects all of which gives us excellent earnings visibility and confidence that we will deliver double digit earnings growth in 2013."
Kentz's operations worldwide have performed very well during 2012 with growth achieved in the Construction and Technical Support Services business units. Continuing to strengthen the EPC business unit is a key focus for the Company and a range of options to achieve enhanced growth in this part of the Group are currently being assessed.
The order intake of US$1.72 billion in 2012 demonstrates continued ability to win new projects and achieve natural growth on existing contracts, in what remains an uncertain economic environment. Despite this climate, having over 65% revenue cover from orders on hand is in line with our expectations and also with prior years' experience. This achievement, coupled with the continuing solid margin levels supports our confidence in achieving our targets in 2013.
The Group's cash position remains strong. Net cash at the end of December 2012 was approximately US$220 million and provides a sound financial base from which to support continued growth.
For further information please refer to the Kentz website www.kentz.com or contact:
Kentz Corporation Limited
Tel: +44 (0)20 3159 4000
Investors: Ronan Tyrrell
Media: Paul Youens
Tel: +44 (0)20 7920 3150
Kentz is a global engineering specialist solutions provider, which serves a blue chip client base primarily in the oil and gas, petrochemical and mining and metals sectors. It is listed on the London Stock Exchange (symbol: KENZ). In the year ending December 2011, the company generated revenues of US$1.37 billion and profit before tax of US$79.4 million.
Kentz has over 14,000 employees in 29 countries. Its three main business lines are; engineering, procurement and construction (EPC) services, construction, and technical support services. It has a proven track record of delivering mechanical, electrical, controls and instrumentation engineering, construction and management services in some of the most remote locations on earth.
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