Oil refinery consultancy and software provider KBC Advanced Technologies reported slightly better than expected 2007 profits.
Revenues increased from £35.4m to £38.1m and operating margins improved even more. Profits jumped from £1.74m to £2.9m. The dividend was increased by 50% to 0.75p a share. KBC has net cash of £1.3m.
KBC is benefiting from the need to expand oil refining capacity. Overall world energy consumption is expected to rise by 71% between 2003 and 2030, according to the Energy Information Administration. Oil will continue to be just over one-third of that energy, with gas accounting for just under one-quarter.
The order book is worth £30m and around two-thirds of that should flow through to revenues in 2008.
The shares rose 3p to 41.5p, valuing the company at £23.6m.
Trading remains strong. House broker Arden has increased its 2008 profit forecast from £3.3m to £3.5m. The shares are trading on less than 11 times prospective earnings, falling to nine the following year.
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