Part 2 : For preceding part double-click [nRn1N9685Y]
should be made to the financial information as presented for the six months
ended 30 June 2009
11th September 2009
BDO Simpson Xavier
Registered Auditors
Kentz Corporation Limited
Condensed consolidated income statement for the period ended 30 June
2009
In thousands of USD Notes Six months ended Year ended 31 Dec
Six months ended 30 June
30 June
2008
2009 2008
Continuing Operations
Revenue 2 328,752 328,650 643,414
Cost of sales (284,944) (288,410) (555,773)
Gross profit 43,808 40,240 87,641
Administration expenses (25,109) (23,648) (48,848)
Distribution & selling costs (1,098) (1,174) (2,561)
Other operating income 228 344 609
Operating profit before finance costs 2 17,829 36,841
15,762
Net finance income 410 1,842 3,994
Share of joint ventures' profit/(loss) 272 (760) (118)
Flotation Costs 5 (4,695)
- (4,565)
Profit before tax 18,511 12,279 36,022
Income tax expense (4,710) (3,937) (9,845)
Profit for the period 13,801 8,342 26,177
Attributable to:
Equity holders of the parent 12,909 7,876 24,109
Minority interest 892 466 2,068
Profit for the period 13,801 8,342 26,177
Basic earnings per share (US$ cents)* 3
From continuing and discontinued operations 11.09 10.99 25.09
From continuing operations 11.09 10.99 25.09
Basic earnings per share (US$ cents) after flotation costs
From continuing and discontinued operations 11.09 6.96 21.00
From continuing operations 11.09 6.96 21.00
*2008 results are stated before non-recurring flotation costs
Condensed consolidated statement of total recognised income and expenses
Six months ended Six months ended Year ended 31 Dec
30 June 30 June
In thousands of USD 2008 2008
2009
Profit for the financial period 13,801 8,342 26,177
Exchange translation differences
- on employee benefits (130) (794) 802
- on foreign currency net investments 2,095 (566) 3,150
Actuarial losses on defined benefit plan (110) (2,322) (8,316)
Total recognised income and expenses for the period 15,656 21,813
4,660
Attributable to:
Equity holders of the parent 14,764 4,194 19,745
Minority interest 892 466 2,068
Total recognised income and expenses for the period 15,656 21,813
4,660
Condensed consolidated balance sheets
In thousands of USD Notes 30 June 31 Dec
2009 30 June 2008
2008
ASSETS
Non-current assets
Property, plant & equipment 42,457 14,434 25,345
Goodwill 319 663 543
Other investments 3,156 2,949 2,902
Trade and other receivables 1,385 - 1,936
Deferred tax asset 535 1,242 184
47,852 19,288 30,910
Current assets
Inventories 17,721 16,145 39,157
Trade and other receivables 143,422 113,500 84,078
Amounts owed by related parties 2,830 2,430 3,412
Cash and cash equivalents 166,124 196,412 154,504
330,097 328,487 281,151
Total assets 377,949 347,775 312,061
EQUITY
Share capital 6 2,284 2,284 2,284
Share premium 7 39,568 39,568 39,568
Reserves 7 2,388 12 2,388
Retained earnings 7 80,108 58,691 69,861
Total equity attributable to equity
holders of the parent 124,348 100,555 114,101
Minority interests 1,177 755 125
Total equity 125,525 101,310 114,226
LIABILITIES
Non-current liabilities
Interest bearing loans and borrowings 1,302 139 30
Employee benefit obligations 15,757 12,595 15,670
Amounts owed to related parties 92 92 92
Trade and other payables 4,253 4,288 3,278
Deferred tax liabilities 48 - 81
21,452 17,114 19,151
Current liabilities
Trade and other payables 224,092 223,912 170,464
Corporation tax payable 1,572 1,963 4,317
Interest bearing loans and borrowings 3,338 1,851 2,009
Amounts owed to related parties 1,970 1,625 1,894
230,972 229,351 178,684
Total liabilities 252,424 246,465 197,835
Total equity and liabilities 377,949 347,775 312,061
Condensed consolidated cash flow statements
Six months ended Six months ended
30 June 30 June Year ended
31 Dec
In thousands of USD 2009 2008 2008
Cash flows from operating activities
Profit before taxation 18,511 12,279 36,022
Adjustments for:
Depreciation 4,018 2,698 5,448
Net finance income (411) (1,842) (3,994)
Gain on sale of property, plant & equipment 26 60 65
Share of (profit)/loss from joint venture (272) 760 118
Current service cost 238 275 519
(Increase)/decrease in trade and other (57,975) (3,589)
receivables 22,771
Decrease/(increase)/in inventories 21,414 2,049 (20,964)
Increase/(decrease) in trade and other payables 54,333 33,462 (18,073)
Cash generated from operations 39,882 46,152 21,912
Interest paid (320) (63) (202)
Income taxes paid (7,384) (5,965) (10,662)
Net cash from operating activities 32,178 40,124 11,048
Cash flows from investing activities
Return from joint venture 254 467 1,476
Disposal of subsidiary (net of cash) - 1,000 1,000
Purchase of property, plant and equipment (16,402) (5,547) (22,112)
Proceeds from sale of equipment 31 153 826
Interest received 730 1,797 4,182
Pension contribution (714) (676) (2,311)
Net cash used in investing activities (16,101) (2,806) (16,939)
Cash flows from financing activities
Proceeds of share issue - 37,114 37,114
Expenses associated with new share issue - (2,936) (3,071)
Proceeds from/(payments of) long-term borrowings 1,096 23 (86)
Payment of short-term borrowings (122) (196) (168)
Proceeds from short-term borrowings 1,272 369 1,388
Dividends paid (4,515) - (2,004)
Net cash (used)/from in financing activities (2,269) 34,374 33,173
13,808 71,692 27,282
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period 154,359 123,651 123,651
Exchange difference (2,464) 158 3,426
Cash and cash equivalents at end of period 165,703 195,501 154,359
Kentz Corporation Limited
Notes to the condensed interim financial statement for the period ended 30 June
2009
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
2008.
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:
* Middle East
* Africa
* Australasia, Europe and Caribbean
* Arctic and New Areas
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 Six months ended Year ended
30 June 30 June 31 Dec
2009 2008 2008
Revenue by location of assets
Middle East 231,872 221,101 405,951
Africa 63,151 59,078 131,108
Australasia, Europe and Caribbean 14,655 9,478 15,787
Arctic and New Areas 19,074 38,993 90,568
Total Revenue 328,752 328,650 643,414
Operating profit before net finance cost by location
of assets
Middle East 16,595 13,583 22,896
Africa 4,184 3,124 12,173
Australasia, Europe and Caribbean (3,891) (3,108) (5,912)
Arctic and New Areas 464 1,762 5.892
17,352 15,361 35,049
Unallocated group income 477 401 1,792
Unallocated flotation costs - (4,565) (4,695)
Continuing operations - operating profit 17,829 11,197 32,146
Secondary segment information by business
Business segments
In thousands of USD Six months ended Six months ended Year ended
30 June 30 June 31 Dec
2009 2008 2008
Revenue by business
EPC 66,249 125,029 184,471
Construction 168,544 118,493 279,204
Technical Support Services 93,959 85,128 179,739
Continuing operations 328,752 328,650 643,414
3. Earnings per ordinary share
In thousands of USD Year ended 31 Dec
Six months Six months
ended 30 ended 30
June June
2009 2008
2008
Continuing and discontinued operations
Profit attributable to ordinary shareholders 12,909 12,441 28,804
Weighted average number of shares of the Company No. '000 No. '000
No. '000
Basic and diluted 116,371 113,206 114,802
Earnings per Share (US$ cents)
Basic and diluted
From continuing and discontinued operations 11.09 25.09
10.99
From continuing operations 11.09 10.99 25.09
Basic earnings per share for 2008 are calculated on earnings before
non-recurring flotation costs.
The calculation at 31 December 2008 is based on 114,801,603 ordinary shares of
STG£0.01 each which reflects the weighted average number of shares in issue in
2008. The actual number of shares in issue at 31 December 2008 was 116,371,470
shares of STG£0.01 each.
The calculation at 30 June 2009 is based on 116,371,470 ordinary shares of
STG£0.01 each which reflects the actual number of shares in issue.
4. Employee Share Option Scheme
On 1 July 2009, 5,820,000 share options were granted under the Employee Share
Option Scheme. These options are exercisable from 1 July 2012, subject to
certain financial performance conditions being met. These options will expire on
30 June 2019.
5. 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$4.6m being charged to
the income statement.
6. Share capital
In thousands 30 June 31 Dec
2009 2008
Called up share capital
116,371,470 ordinary shares of Stg£0.01 each 1,164 1,164
US Dollar equivalent 2,284 2,284
7. Equity
Share Share Capital Retained Cumulative Total
capital premium reserve earnings translation
account account reserves
In thousands of USD
At 1 January 2008 14 7,796 206 53,930 372 62,318
Issue of shares 323 36,791 - - - 37,114
Expenses associated with share issue - (3,072) - - - (3,072)
Bonus Issue 1,947 (1,947) - - - -
Total recognised income & expense - - - 16,595 3,150 19,745
Transfer to statutory reserve - - 2,182 (2,182) - -
Dividends - - - (2,004) - (2,004)
At 31 December 2008 2,284 39,568 2,388 66,339 3,522 114,101
At 1 January 2009 2,284 39,568 2,388 66,339 3,522 114,101
Total recognised income & expense - - - 12,667 2,095 14,762
Dividends - - - (4,515) - (4,515)
At 30 June 2009 2,284 39,568 2,388 74,491 5,617 124,348
At 1 January 2008 14 7,796 206 53,930 372 62,318
Issue of shares 323 36,791 - - - 37,114
Expenses associated with share issue - (3,071) - - - (3,071)
Bonus issue 1,947 (1,947) - - - -
Total recognised income & expense - - - 4,760 (566) 4,194
Dividends - - - - - -
At 30 June 2008 2,284 39,569 206 58,690 (194) 100,555
8. Dividends
Six months ended 30 June Year ended
31 Dec
In thousands of USD 2009 2008 2008
Dividends approved and paid 4,515 - 2,004
Dividends approved but not paid at the period end - - -
4,515 - 2,004
On 11th September 2009, the Board approved an interim dividend of 2.0 US$ cents
per share (2008: 1.9 US$ cents), an increase of 5.3%, which will be paid on 16th
October 2009 to eligible shareholders on the register at 25th September 2009.
Shareholders who have not elected to receive dividends in US dollars will
receive a Sterling equivalent based on the prevailing exchange rate ruling on
the record date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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