Part 2 : For preceding part double click [nRn1O3937D]
Operating profit/(loss) before finance costs 2 9,729 29,914
15,762 (4,565) 11,197
Net finance income 1,842 - 1,842 1,121 3,234
Share of joint ventures' (loss)/profit (760) - 216 1,163
(760)
Profit/(loss) before tax 16,844 (4,565) 12,279 11,066 34,311
Income tax expense (3,937) - (3,937) (2,149) (8,033)
Profit/(loss) for the period - continuing operations 12,907 (4,565) 8,342 8,917 26,278
Loss on discontinued operations - - (524) (524)
-
Gain on disposal of discontinued operations - - 761 761
-
Profit/(loss) for the period 12,907 (4,565) 8,342 9,154 26,515
Attributable to:
Equity holders of the parent 12,441 (4,565) 7,876 9,154 26,186
Minority interest 466 - 466 - 329
Profit/(loss) for the period 12,907 (4,565) 8,342 9,154 26,515
Basic earnings per share (US$ cents) 3
From continuing and discontinued operations 10.99 (4.03) 6.96 9.15 26.19
From continuing operations 10.99 (4.03) 6.96 8.92 25.95
Condensed Consolidated statement of total recognised income and expenses
Year ended
Six months ended 30 June 31 Dec
In thousands of USD 2007 2007
2008
Profit for the financial period 8,342 9,154 26,515
Exchange translation differences
- on employee benefits (794) (134) (946)
- on foreign currency net investments (566) 248 536
- on discontinued operations - (219) (219)
Actuarial (losses)/gains on
defined benefit plan (2,322) 5,952 (1,655)
Total recognised income and expenses for the period 15,001 24,231
4,660
Attributable to:
Equity holders of the parent 4,194 15,001 23,902
Minority interest 466 - 329
Total recognised income and expenses for the period 15,001 24,231
4,660
Condensed consolidated balance sheets
30 June 30 June 31 Dec
In thousands of USD Notes 2008 2007 2007
ASSETS
Non-current assets
Property, plant & equipment 14,434 10,730 12,565
Intangible assets 663 736 760
Other investments 2,949 6,609 3,929
Trade and other receivables - 1,869 1,596
Deferred tax asset 1,242 1,209 1,045
19,288 21,153 19,895
Current assets
Inventories 16,145 10,466 18,194
Trade and other receivables 113,500 87,086 108,055
Amounts owed by related parties 2,430 3,805 3,436
Cash and cash equivalents 196,412 111,953 124,041
328,487 213,310 253,726
Total assets 347,775 234,463 273,621
EQUITY
Share capital 5 2,284 14 14
Share premium 6 39,569 7,796 7,796
Reserves 6 12 263 578
Retained earnings 6 58,690 54,044 53,930
Total equity attributable to equity
holders of the parent 100,555 62,117 62,318
Minority interests 755 - 339
Total equity 101,310 62,117 62,657
LIABILITIES
Non-current liabilities
Interest bearing loans and borrowings 139 296 117
Employee benefit obligations 12,595 2,500 9,801
Amounts owed to related parties 92 409 92
Trade and other payables 4,288 2,057 2,327
Deferred tax liabilities - - 59
17,114 5,262 12,396
Current liabilities
Trade and other payables 225,875 162,711 196,058
Interest bearing loans and borrowings 1,851 3,085 1,121
Amounts owed to related parties 1,625 1,288 1,389
229,351 167,084 198,568
Total liabilities 246,465 172,346 210,964
Total equity and liabilities 347,775 234,463 273,621
Condensed consolidated cash flow statements
Year ended
Six months ended 30 June 31 Dec
In thousands of USD 2008 2007 2007
Cash flows from operating activities
Profit before taxation 12,279 11,061 34,306
Adjustments for:
Depreciation 2,698 2,136 4,185
Net finance income (1,842) (829) (2,942)
Loss/(gain) on sale of Property, plant & equipment 60 (108) 20
Share of loss/(profit)from joint venture 760 (216) (1,163)
Current service cost 275 312 644
(Increase)/decrease in trade and other (3,589)
receivables 2,592 (17,882)
Decrease/(increase)/in inventories 2,049 2,356 (5,372)
Increase in trade and other payables 33,462 48,768 80,681
Cash generated from operations 46,152
66,072 92,477
Interest paid (63) (454) (515)
Income taxes paid (5,965) (2,490) (4,464)
Net cash from operating activities 40,124 63,128 87,498
Cash flows from investing activities
Return from joint venture 467 - 3,709
Investment in joint venture - (2,799) (2,799)
Acquisition of minority interest - (246) (246)
Disposal of subsidiary (net of cash) 1,000 856 856
Purchase of property, plant and equipment (5,547) (5,422) (9,235)
Proceeds from sale of equipment 153 147 224
Interest received 1,797 1,145 3,212
Pension contribution (676) (493) (1,848)
Net cash used in investing activities (2,806) (6,812) (6,127)
Cash flows from financing activities
Proceeds of share issue 37,114 - -
Expenses associated with new share issue (2,936) - -
Payment of finance lease liabilities - (101) (126)
Proceeds of long-term borrowings 23 171 171
Payment of short-term borrowings (196) (2,610) (3,247)
Proceeds from short-term borrowings 369 370 1,046
Dividends paid - (2,000) (12,700)
Net cash from/(used) in financing activities 34,374 (4,170) (14,856)
71,692 52,146
Net increase in cash and cash equivalents 66,515
Cash and cash equivalents at beginning of period 123,651 57,282 57,282
Exchange difference 158 (90) (146)
Cash and cash equivalents at end of period 195,501 109,338 123,651
Kentz Corporation Limited
Notes to the condensed interim financial statement for the period ended 30 June
2008
1. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs) and its
interpretations adopted by the International Accounting Standards Board (IASB)
and Jersey Company law.
The accounting policies adopted are consistent with those described in the
annual financial statements and should be read in conjunction with the
consolidated financial statements of the Group for the year ended 31 December
2007.
The interim condensed consolidated financial statements are presented in US
Dollars, rounded to the nearest thousand which represents the functional
currency of the Group as it is the primary economic environment in which the
Group operates. They have been prepared on a historical cost basis except that
financial instruments held for trading are recorded at their fair value.
2. Segment reporting
Segment information is presented in respect of the Group's geographical and
business segments. The primary format, geographical segments, is based on the
Group's management and internal reporting structure.
(i) Geographical segments
The Group manages its business on a worldwide basis by organising its activities
into four distinct regions. The geographical areas are the Middle East, Africa,
Australasia, Europe and Caribbean; and the Arctic and New Areas region.
Australasia, Europe and Caribbean includes all costs associated with the Group's
administrative function.
In presenting the information on the basis of geographical segments, segment
revenue is based on the geographical location of assets.
(ii) Business segments
The Group's activity comprises of the following main business segments:
* Engineering, procurement, and construction (EPC)
* Construction and
* Technical support services
2. Segment reporting (continued)
Primary segment information by location of assets
Geographical segments
In thousands of USD Six months ended 30 June Year ended
31 Dec
2008 2007 2007
Revenue by location of assets
Middle East 221,101 180,243 379,568
Africa 59,078 40,133 94,902
Australasia, Europe and Caribbean 9,478 5,344 24,858
Arctic and New Areas 38,993 18,817 45,322
Continuing operations 328,650 244,537 544,650
Discontinued operations - 9,618 9,618
Total revenue 328,650 254,155 554,268
Operating profit before net finance cost by location
of assets
Middle East 13,583 10,135 27,331
Africa 3,124 (1,231) 3,054
Australasia, Europe and Caribbean (3,108) (697) (2,167)
Arctic and New Areas 1,762 1,341 492
15,361 9,548 28,710
Unallocated group income 401 181 1,204
Unallocated flotation costs (4,565) - -
Continuing operations - operating profit 11,197 9,729 29,914
Secondary segment information by business
Business segments
In thousands of USD Six months ended 30 June Year ended
31 Dec
2008 2007 2007
Revenue by business
EPC 125,029 119,963 263,695
Construction 118,493 79,064 147,412
Technical Support Services 85,128 45,510 133,543
Continuing operations 328,650 244,537 544,650
3. Earnings per ordinary share
Six months ended 30 June Year ended
31 Dec
In thousands of USD 2008 2007 2007
Before flotation costs Flotation costs Total Total
(Note 4)
Total
Continuing and discontinued operations
Profit/(loss) attributable to ordinary shareholders 12,441 (4,565) 9,154 26,186
7,876
Continuing operations
Add loss on discontinued operations - - 524 524
-
Less gain on disposal of discontinued operations - - (761) (761)
-
12,441 (4,565) 7,876 8,917 25,949
Weighted average number of shares of the Company No. '000 No. '000 No. '000 No. '000
No. '000
Basic 113,206 113,206 113,206 100,000 100,000
Earnings per Share (US$ cents)
Basic
From continuing and discontinued operations 10.99 (4.03) 9.15 26.19
6.96
From continuing operations 10.99 (4.03) 6.96 8.92 25.95
The calculation at 31 December 2007 is based on 100,000,000 ordinary shares of 1
pence each which reflects the restructuring of the shares in January 2008 as
part of the preparation for admission to AIM. The actual number of shares in
issue at 31 December 2007 was 1,000,000 shares of 1 pence each and, subsequent
to the year end, a bonus issue of 99,000,000 ordinary shares was made.
The calculation at 30 June 2007 is based on 100,000,000 ordinary shares of 1
pence each which reflects the restructuring of the shares in November 2007 and
January 2008 as part of the preparation for admission to AIM. The actual number
of shares in issue at 30 June 2007 was 10,000 shares of £1 each and, subsequent
to the period end, each ordinary share was divided into 100 ordinary shares of 1
pence each and a bonus issue of 99,000,000 ordinary shares was made.
4. AIM Listing and Flotation costs
The ordinary shares of the Company were admitted to trading on the AIM market of
the London Stock Exchange on 5 February 2008.The Company raised US$37.1m before
expenses from the listing. Total expenses associated with the admission of Kentz
Corporation Limited to the AIM are US$7.7m. These are reflected in the condensed
interim financial statements for the six month period ended 30 June 2008 with
US$3.1m being offset against share premium raised and US$4.6m being charged to
the income statement.
5. Share capital
30 June 31 Dec
In thousands 2008 2007
Called up share capital
116,371,470 ordinary shares of Stg£0.01 each
(2007: 1,000,000 ordinary shares of Stg£0.01 each) 1,164 10
US Dollar equivalent 2,284 14
On 10 January 2008, the Directors approved the bonus issue of 99,000,000
Ordinary Shares credited as fully paid in proportion to the shares held by
registered shareholders on 8 January 2008. On admission to AIM on 5 February
2008, 16,371,470 new ordinary shares were placed on behalf of the Company. The
number of ordinary shares in issue following admission is 116,371,470.
6. Equity
Share Share Capital Retained Cumulative Total
capital premium reserve earnings translation
account account reserves
In thousands of USD
At 1 January 2007 14 7,796 179 43,072 55 51,116
Total recognizedincome & expense - - - 23,585 317 23,902
Dividends - - - (12,700) - (12,700)
Transfer - - 27 (27) - -
At 31 December 2007 14 7,796 206 53,930 372 62,318
At 1 January 2007 14 7,796 179 43,072 55 51,116
Total recognizedincome & expense - - - 14,972 29 15,001
Dividends - - - (4,000) - (4,000)
At 30 June 2007 14 7,796 179 54,044 84 62,117
At 1 January 2008 14 7,796 206 53,930 372 62,318
Issue of shares 323 36,791 - - - 37,114
Expenses associated with share issue - (3,071) - - - (3,071)
Bonus issue 1,947 (1,947) - - - -
Total recognizedincome & expense - - - 4,760 (566) 4,194
Dividends - - - - - -
At 30 June 2008 2,284 39,569 206 58,690 (194) 100,555
7. Dividends
Six months ended 30 June Year ended
31 Dec
In thousands of USD 2008 2007 2007
Dividends approved and paid - 2,000 12,700
Dividends approved but not paid at the period end - 2,000 -
- 4,000 12,700
On 12th September 2008, the Board approved an interim dividend of 1.9 US$ cents
per share to be paid on 24th October 2008 to eligible shareholders on record as
on 26th September 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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