Download ppt - KBC Advanced Technologies plc Annual Results 31 December 2003

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

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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

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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

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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


£000 £000

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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)


£000 £000

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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

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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


20% 27%

53%

2001 12 mnths - £m

22.511.8

7.7


58%22%

20%

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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

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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

%

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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