Expro International Says FY Results Continue to Strengthen
Expro International Group reports that trading during the second half of the year ended March 31, 2005 has continued to strengthen. As a result, the Board now anticipates that the outturn for the full year is expected to be at the upper end of the current range of analysts' expectations (EPS range, pre amortisation of goodwill and exceptional items, is 15.4p – 17.2p). This performance is primarily a result of stronger trading from Tronic and better activity levels in the UK North Sea. This will be partially offset by additional, one-off, tax charges relating to the crystallization of certain historical issues which have previously been highlighted. Our efforts during the past eighteen months have been aimed at restructuring our operations, to ensure they mirror the requirements of the strengthening global markets for late cycle, upstream products and services. We are now benefiting from these actions, across all areas of our business.
In addition, the rapid and sustained growth of capital spend in the deep water markets has enabled Tronic, our deep water, hostile environment power and instrumentation connector business, to deliver the most improved year on year performance of all our businesses and its strongest performance to date. The recently announced acquisition of Read Matre Instruments AS will provide further opportunities in this area through both synergies and market growth.
While we continue to observe negative sentiment regarding the UK North Sea, Expro continues to deliver an excellent performance in this market from our hub in Aberdeen. By combining the best available technology to the needs of a mature and historically high-cost oil province, our products and services are in strong demand. The recently announced £53 million five year contract with Shell Exploration and Production Europe provides a strong platform to maintain our leading market position.
We have been successful in securing significant contracts, as announced in February 2005, which both underpin our current strong market positions and, through their phased delivery over a number of years, provide a platform for our continued growth. After a year of aggressive strategy implementation and investment, at this stage, the Board is comfortable with the current analysts' expectations for the Financial Year 2005/6.
Graeme Coutts, Group CEO commented: "After a number of difficult years, I am greatly encouraged by our progress, particularly given the aggressive financial targets set by the business in our published 2003 strategy. Strong client relationships and technical competence are at the forefront of Expro's strategy, and I am pleased to say that we have clear evidence of its success in the significant improvement in the company's financial performance. There is no question that market conditions have also improved and that Expro is positioning to take advantage of this recovery in the future. Many of the recent market successes we have enjoyed will deliver earnings in a phased manner over several years and, despite the continued weakness of the US dollar, we believe we remain well placed to deliver our financial goals."
The preliminary announcement of the results for the year will be made on Thursday June 2, 2005.
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