Kentz profits jump on strong demand

Engineering and construction group Kentz saw profits jump in the first half as overall demand remained strong and its backlog of work grew.

Profit before tax increased by 35.8% to $51.2m on revenue that was up 9.4% on 2011 to $703.7m.

A strong performance in the Americas - particularly Canada - and Australasia offset falls in revenue in Africa, the Middle East, Europe and the Far East.

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

The firm said it remained confident that it could deliver double digit earnings growth across the full year.

It also reported its backlog of work was $2.52bn as of the end of June, compared to $1.57bn the year before.

By the end of July, this had increased to $2,54bn, reflecting further new awards of numerous small and medium sized contracts and significant natural growth from existing contracts in 2012 so far, Kentz said.

Earnings per share were up 4.5% to 28.07c and the positive figures prompted the firm to push up its interim dividend by 10% to 5.5c a share.

"We have achieved increases in revenue, profits and cash flow generated during the period and I am confident that we can deliver full year results in line with market expectations," said Chief Executive Christian Brown.

"Despite the continuing uncertainty in the global economy, demand for our diversified services remains strong, with our backlog and solid pipeline of prospects leaving us well positioned to deliver future growth," he said.