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KBC Advanced Technologies

  • BY: Andrew Hore |
  • POSTED: 14/01/2009 |

Oil refinery consultancy and software provider KBC Advanced Technologies says its 2008 profits will be in line with expectations.

Analysts’ expect profits of around £5.15m, against £2.9m in 2007.

Worries about the declining price of oil have hit the KBC share price in recent months. The latest announcement boosted the share price by 1.5p to 38p a share, which values KBC at £21.7m.

There is net cash of £5.4m in the balance sheet.

KBC admits that growth will not continue to be as fast as in 2008 but it starts 2009 with strong software revenues due to be recognised in the first quarter. The order book is worth £37m – 20% higher than one year ago. The weakness of the pound has helped but new business has also been strong.

Capital investment-based revenues may prove harder to come by this year but this should be offset by demand for operational investment to improve refinery efficiency and margins.

Denis Gross of Equity Development is maintaining his 2009 profit forecast at £6.24m on revenues of £54.8m. That is revenue growth of 15% against 25% last year. The shares are trading on just over six times 2008 estimated earnings and five times 2009 forecast earnings.

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