Kentz begins year strong with new contracts

Engineering and construction group Kentz Corporation said it was trading in line with expectations as it secured new contracts across each of its three business units.

The company received an order intake of about $700m in the first four months of the year and the prospect pipeline increased to $13.7bn at the end of April from $13.2bn at the end of December.

Business units including the Engineering, Procurement and Construction (EPC) business, Construction and Technical Support Services won significant contracts in Australia, Africa, Canada, the Dominican Republic and Columbia.

"The group has continued to trade in line with management's expectations and as in previous years, we expect results to be weighted towards the second half of the year," Kentz said in its interim statement.

"Our balance sheet remains strong and continues to support the further development of the business and we do not envisage any significant change in the group's cash position at June 30th to the position reported at year-end."

At the end of March, the firm had about 80% of 2013 target revenues under contract. The backlog at the end of April came to $2.80bn, up from $2.57 at end of December.

The company sees further opportunities in core markets with both existing and new clients. It has experienced increased bidding activity, with a number of prospects due for award this year.

"Despite uncertainties in the global economy and in the demand for commodities, we are confident of the prospects for our business and we reiterate our guidance to achieve double-digit earnings growth in 2013," Kentz concluded.

Shares rose 0.59% to 309.20p at 09:29 Friday.

RD