Kentz backlog keeps growing

Engineering and construction group Kentz said it was on track to hit its revised targets as its backlog of work continued to grow.

At the end of May 2012 that backlog had grown to US$2.5bn, up from £2.46bn in April.

Since the beginning of the year new orders and natural growth from the firm's clients had reached around $700m, the firm said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

This gave Kentz visibility of work up until 2015, which it said not only supported current expectations, but positioned it strongly for continued growth in the business.

The current backlog consists of 66% reimbursable service contracts, 12% unit rate reimbursable contracts and 22% lump sum work.

Chief Executive, Christian Brown, said: "We have experienced very little in the way of delays or cancellations to any of the prospects in our current pipeline of opportunities - and certainly none that have had a material effect on the Group or our outlook for 2012 and 2013."

"Despite the current volatility in world markets, we continue to see strong demand for Kentz's services, led by a dedicated workforce that is committed to achieving industry leading standards of safety and delivery," he added.