Upload
len-morales
View
20
Download
0
Embed Size (px)
DESCRIPTION
KBC Advanced Technologies plc Annual Results 31 December 2003. March 2004. Overview 2003. Difficult trading conditions persisted through most of the year - exacerbated by the uncertainty created by the ownership discussions Core business remains in good shape - PowerPoint PPT Presentation
Citation preview
KBC Advanced Technologies plcAnnual Results
31 December 2003
March 2004
2
Overview 2003
Difficult trading conditions persisted through most of the year - exacerbated by the uncertainty created by the ownership discussions
Core business remains in good shape
Management team refreshed and have stabilised the business
Staff morale improved significantly in final quarter
Business being repositioned to improve the scope and depth of engagement with clients and improve service differentiation
Progress on software development has been made - despite the continuing legal dispute
£ results impacted by continuing weakness of $US
Dividend maintained
3
Operational highlights 2003
Began to reap the benefits of the two acquisitions made in 2002
Combined revenue up 37%
KBC Energy Services was the best performing business in 2003
PEL enabled KBC to enter the strategic planning market
Significant new licence sales in US, Asia and South America and overall software revenue up 10%
Expansion of RAM services into Upstream sector
Weakness in Europe and China contrasted with better conditions in the Americas and Asia
Latin America continues to be strongest market with further multi-year programmes added
First PIP in South Africa
Middle East, Korea and Japan continue to be strong areas of revenue
4
Summarised profit and loss account
Turnover 32,27438,193Operating profit 7041,487Goodwill amortisation (490)(467)Other operating exceptional items (2,397)(3,011)Amounts written off fixed asset investment -(1,451)Net Interest 200 318Loss before tax (1,983)(3,124)Taxation 499 673Profit after tax (1,484)(2,451)Dividends (1,906)(1,938)Retained (loss)/profit (3,390)(4,389)
Earnings per share - basic (3.19p) (5.08p) - fully diluted (3.17p) (5.08p) - basic before goodwill
and exceptional items 1.37p 3.33p Average number of shares in issue 46.5m 48.2m
12 months to 12 months to31 Dec 2003 31 Dec 2002
£000 £000
5
Foreign exchange impact
Turnover 32,274 33,976 38,193
Operating costs 31,570 32,767 36,706
_____ _____ _____
Operating profit before goodwill 704 1,209 1,487
and exceptional items
At 31Dec At 31 Dec At 31 Dec2003 2003 2002
£000 £000 £000at constant
exchange rate
6
Exceptional Costs
Software dispute, legal fees, etc 1,325 1,565
Acquisition integration - 399
Reorganisation 878 1,047
Strategic review 194 -
ESOP share write down ____- 1,451
Total 2,397 4,462
12 months to 12 months to31 Dec 2003 31 Dec 2002
£000 £000
7
Summarised group cash flow statement
Net cash from operations 275 1,257
Operating exceptional items (1,846) (2,022)
Net interest received 200 318
Tax (paid)/refunded 769 (1,847)
Capital expenditure (257) (799)
Dividends paid (1,906) (1,994)
Purchase of own shares - (683)
New shares issued - 36
Translation difference (173) (123)
Net cash outflow from acquisitions (410) (4,738)
(3,348) (10,595)
12 months to 12 months to31 Dec 2003 31 Dec 2002
£000 £000
8
Summarised group balance sheet
Fixed assets 7,756 9,288
Net current assets (excl cash) 8,032 7,356
Cash 4,275 7,623
Creditors due after 1 year (300) (600)
Provisions (1,180) (1,100)
Net assets 18,583 22,567
Share capital and reserves 7,466 7,466
Profit and loss 11,117 15,101
18,583 22,567
At 31 Dec At 31 Dec
2003 2002£000 £000
9
Revenues by region2002 12 mths - £m
12.2
18.7
7.3
Europe/Middle East/Africa Americas Asia
49%
19% 32%
2003 12 mths - £m
8.6
17
6.6
Europe/Middle East/Africa Americas Asia
20% 27%
53%
2001 12 mnths - £m
22.511.8
7.7
Europe/Middle East/Africa Americas Asia
58%22%
20%
10
Revenues by business area
12.4
1.9 1.7
12.0
2.1
13.3
2.82.2
14.5
5.3
1.8
5.0
9.0
6.2
8.0
6.2
1.6
5.5
2.22.4
12.1
1.9 1.8
7.2
Process Consulting Other Consulting Software
H1'00 H2'00 H1'01 H2'01 H1'02 H2'02 H1'03 H2'03
11
Order book value
0
5
10
15
20
25
30
Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03
£ M
illio
ns
within next 12 mths - base fees within next 12 mths - fees @ risk
> 12 mths ahead - base fees > 12 mths ahead - fees @ risk
£22M£35M £40M £28M £29M £24M £20M
12
Consultant utilisation
74 73 7275 74
65
0
10
20
30
40
50
60
70
80
90
%
13
Strategy
Stabilise Business during 2004
Build platform for future sustainable growth
Neutralise impact of software dispute
Retain control on costs
Implement Strategy for Growth for 2005 and beyond
Strategic Planning Studies- Commercial and Technical experience
New software tools for plant optimisation and decision support
Develop technical services based on remote performance monitoring
Worldwide drive into Petrochemical
Expand into Upstream Oil & Gas
Refocus on Client Relationships and Regional Business strategies
Review capital structure & dividend policy:once software dispute settled