Editor's Pick: Markets: The week that was (16-20/11/09)
(VELO.L) Velosi Ltd Buy/Sell
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| Date/Time | Headline | Source |
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| 03-11-09 | RNS |
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RNS Number : 7879B Velosi Limited 03 November 2009
3 November 2009 Velosi Limited Agreement regarding Velosi Nigeria Velosi Limited ('the Group'), the provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, is pleased to announce that it has reached an agreement with the executors/beneficiaries of Richard Ogunmakin's estate regarding the future ownership and operation of Velosi Nigeria. Shares in Velosi Nigeria and Velosi Angola owned by Richard Ogunmakin's estate have now been acquired by the Group and as a result, operations in Nigeria are expected to recommence under a new local manager and we anticipate that Nigeria will again make a contribution to Group revenues from 2010 onwards. The terms of the agreement are not expected to materially affect the performance of the group as a substantial portion of provisions had already been made in prior year accounts.
For further information, please contact:
This information is provided by RNS The company news service from the London Stock Exchange END
AGRUURVRKRRARAA More |
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| 15-10-09 | RNS |
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RNS Number : 8810A Velosi Limited 15 October 2009 Velosi Limited ("Velosi" or the "Company") Change of Name of Nominated Adviser The Company announces that Strand Partners Limited, the Company's Nominated Adviser, has changed its name to Strand Hanson Limited with immediate effect. For further information: Strand Hanson Limited
www.strandhanson.co.uk This information is provided by RNS The company news service from the London Stock Exchange END
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| 21-09-09 | RNS |
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RNS Number : 3550Z Velosi Limited 21 September 2009 21 September 2009 Velosi Limited ("Velosi", "the Company" or "the Group") Interim Results For the six months ended 30 June 2009 Velosi, the AIM listed provider of asset integrity, quality assurance, quality control, engineering and HSE services to major national and multinational oil and gas companies, is pleased to announce its interim results for the six months ended 30 June 2009. Highlights
H109 H108 % Turnover US$89.2m US$77.3m 15.4
John Hogan, Chairman, commented: "Velosi has again delivered a good set of results despite the more challenging market environment. Based on historic trading patterns, revenues tend to be stronger in the second half of the year and this, together with the excellent visibility provided by contracted revenues, gives us confidence that we will achieve a good result for the current year. Despite the weakening commercial environment, the Company's strong underlying operating performance has allowed us to strengthen our financial position. As a result the Company has a strong balance sheet with net cash of $19.7 million, remains cash generative and continues to increase both revenues and profitability." For further information, please contact:
CHAIRMAN'S STATEMENT I am very pleased to report on what has been a strong period of growth for the business. In the first six months of 2009 the Company has increased revenues and profits before tax by 15.4% and 10.4% respectively. This is a particularly satisfying performance as we have been able to simultaneously continue to win new contracts whilst also increasing our cash generation and cash reserves thus creating a financially secure base for the business going forward. Revenue growth has come from our excellent track record of renewing and extending existing contracts and continuing to add new contracts. The partial recovery in oil prices is a positive factor but it is less a function of demand and more a result of reduction in supply and the value of the US dollar, and therefore has not translated into an increase in investment in oil and gas projects. In fact there has been a slowdown in investment, versus historic levels, however, Group revenues have continued to increase as the slowdown has been offset primarily by new income generated as a result of new office openings. The Company's focus is to continue to exploit its position as a one stop shop for the major oil and gas companies. Financial Performance Our ability to retain and win new contracts resulted in turnover increasing by 15.4% to US$89.2 million (2008: US$77.3 million). Profit from ordinary activities before tax for the period was up 10.4% to US$7.9 million (2008: US$7.2 million), and profit after tax also increased, from US$6.0 million in 2008 to US$6.4 million. The effective tax rate for the Group for the half year was 19.2% (2008: 16.2%). The effective tax rate for the Group reflects the contributions from the different regions and their varying tax rates. Profits attributable to minority interests for the period were US$1.3 million (2008: US$1.6 million). Basic earnings per share after minority interests increased to 11.2 cents (2008: 10.4 cents) and fully diluted earnings per share after minority interests were 11.0 cents (2008: 9.4 cents). Velosi's cash position remains strong. At 30 June 2009, cash and cash equivalents for the Group were US$20.1 million (2008: US$10.7 million). Gearing levels remain low with short-term bank borrowings amounting to US$2.8 million (2008: US$5.6 million) and long-term bank borrowings amounting to US$1.5 million (2008: US$1.5 million). Dividend As previously stated the Board does not propose to pay an interim dividend. The Board does however intend, subject to the availability of distributable reserves and a satisfactory performance in the second half of the year, to recommend a final dividend to shareholders in respect of the financial year ending 31 December 2009. Operational Review During 2009 Velosi has continued to develop the business across its chosen geographic regions, in particular we focused on key areas of continued oil and gas investment such as Central Asia, South America and Africa. Our strategy to overlay our core inspection work with higher margin services such as asset integrity management services, project management consultancy, hotwork enclosures and sub sea services has been successful as individual offices are increasingly extending the scope of services to each client. Asia & Australasia Turnover: US$13.5 million (2008: US$14.1 million), Contribution to Group Sales: 15% (2008: 18%) Revenues from Asia and Australasia remained broadly level, however, we expect revenues to increase in the second half as the offtake for the Samsung Heavy Industries contract was initially slow but has since come on track. Velosi India has also made good progress with a series of new contract wins with ONGC, GAIL, Bharat Petroleum and GSPL worth approximately US$6.0 million. In addition, the PPL contract has been expanded to include the assembly and installation of a further 5 derricks. As a result we expect to see an uplift in contribution from this region in the second half of the financial year. Europe Turnover: US$18.5 million (2008: US$19.6 million), Contribution to Group Sales: 21 % (2008: 25%) European revenues in 2008 grew significantly and therefore this first half performance is against very strong comparables. The largest contributor to Europe has been the BP Norge AS contract, providing inspection consultancy services in fabrication sites in Norway, the United Kingdom, and Holland amongst other European countries, which marked the Group's first contract in Norway. The Saipem contract in Italy was deferred slightly to the fourth quarter of 2009 but is still expected to contribute strongly over the duration of the contract. Middle East Turnover: US$33.8 million (2008: US$26.8 million), Contribution to Group Sales: 38% (2008: 35%) The Middle East region produced a strong contribution, building on a good result in 2008. A combination of the new offices opened in the previous year with a succession of new contract wins has consolidated Velosi's leading position in this region. The 5 year Saudi Aramco contract which began in the second half of 2008 is an important part of our overall success. In addition, Petroleum Development Oman has extended its QA/QC contract for the third time, which covers third party inspection services and is worth approximately US$30 million over 4 years. Velosi Certification Services LLC also secured a 5 year worldwide vendor inspection and site construction inspection contract in onshore and offshore locations with ADGAS worth in excess of US$ 10 million. Africa Turnover: US$15.2 million (2008: US$8.7 million), Contribution to Group Sales: 17% (2008: 11%) The first half of 2009 saw revenues increase to US$15.2 million.. The Group was pleased to see the trading performance recover which was due to good contributions from across the Group's areas of operation in Africa including; Ghana, Angola, South Africa and Egypt On April 16 2009 we were awarded a substantial new 5 year contract with the South African state owned electricity provider Eskom. The contract has been won in a 50:50 partnership with Khum MK Investments to provide Quality and Inspection services for Eskom's new build power plant program. Capital spend on this program is expected to be in excess of US$30 billion and the fees for inspection should be in the region of 1-3%. The Quality and Inspection services work will be spread out amongst eight competing inspection authorities. Americas and Former Soviet Union (FSU) Turnover: US$8.3 million (2008: US$8.1 million), Contribution to Group Sales: 9% (2008: 10%) Americas and FSU traded broadly in line with the previous year, has significant strategic importance and continues to make a useful contribution to the overall Group. We remain confident of our ability to increase revenues by focusing on developing inspection services and securing long term contracts. With existing clients including: UOP (Honeywell) Inco Australia, Gulf Interstate Engineering, CB&I, GE Vetco Gray, Enersul, J. Ray McDermott, and KBR - there is a very solid base on which to develop. We have been working hard in 2009 to develop the Russian and Kazakhstan certification work for companies in Canada, and a gradual increase of orders from Canadian companies is expected towards the end of 2009. Employees On behalf of the Board, I would like to take this opportunity to thank all of our employees worldwide for their dedication and continued hard work. Outlook Following a period of rapid expansion, the Group has, over the last 12 months, consolidated its position creating a stable platform to continue to grow and generate further value for shareholders. Cashflow and cash reserves have increased significantly providing the Group with greater flexibility and security. While oil prices have improved from the lows of around $40 per barrel, this increase is more a function of the curbing of supply and the value of the US$, and is not, in our opinion, an indication of increasing demand. We therefore view the current market as challenging and we are working to mitigate the slowdown in investment and the natural tendency for clients in this market to become more price sensitive. Having said that, in recent years the Group has expanded substantially and now operates from 36 countries with 5 principal offices, up from 27 countries with 4 principal offices in 2006. The new offices opened are contributing strongly and this increased volume is principally the reason behind our ability to continue to grow revenues in this environment. Together with our now global presence, which provides a natural hedge against being overly exposed to any one region, we are specifically targeting those geographic regions where the oil and gas majors are continuing to invest such as Kazakhstan, West Africa, Australia and Brazil. Underpinning this strategic approach is our ongoing focus on ensuring the business operates on a cost efficient basis thereby maintaining our strong financial base. We are pleased with our trading performance for the first half of 2009 and with the first three months of the second half nearly completed, together with our visibility on future revenues, we are confident that we are trading in line with expectations for the full year. Looking ahead, our order book remains strong and we believe we are achieving our aims of delivering a truly global service offering, providing a range of increasingly diverse and higher margin services. John Hogan Chairman
VELOSI LIMITED Consolidated Statement of Comprehensive Income For the six months ended 30 June 2009
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companies -------------- -------------- ---------------
before tax
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translating foreign operation -------------- -------------- ---------------
the period net of tax -------------- -------------- ---------------
the period
Profit attributable to:
Total comprehensive income
attributable to:
VELOSI LIMITED Consolidated Statement of Financial Position As at 30 June 2009
2009 2008 2008
Assets Non-current assets
equipment
companies
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sale
Equity and liabilities Capital and reserves
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equity holders
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VELOSI LIMITED Consolidated Statement of Financial Position As at 30 June 2009
2009 2008 2008
Current liabilities
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liabilities -------------- -------------- ---------------
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VELOSI LIMITED Consolidated Statement of Cash Flow For the six months ended 30 June 2009
operating activities
Cash flows from investing
activities
and equipment
property, plant and equipment
companies, net of cash
associated companies
associated company
activities
Cash flows from financing
activities
related party
directors
shareholders of subsidiary
companies
financing activities
equivalents
differences
the beginning of the period
the end of the period
Cash and cash equivalents
comprise:
equivalents
overdraft
VELOSI LIMITED Consolidated Statement of Changes in Equity For the six months ended 30 June 2009
VELOSI LIMITED
Velosi Limited was incorporated in Jersey on 28 March 2006. The principal activity of the Company is investment holding. The principal activities of the Group are provision of asset integrity management and health, safety, and environment (HSE) services, which cover quality assurance and quality control services. This includes certification, project verification, quality enhancement and engineering support services.
The interim condensed consolidated statement is unaudited and does not constitute statutory financial statements. The interim condensed consolidated statement incorporated the results of the Velosi Group for the period from 1 January 2009 to 30 June 2009. The results for the year ended 31 December 2008 have been extracted from the statutory financial statements' for Velosi Limited for the year ended 31 December 2008 which are prepared under International Financial Reporting Standards (''IFRS''). The interim report should be read in conjunction with the annual financial statement for the year ended 31 December 2008. The accounting policies, presentation and methods of computation have been followed in these unaudited financial statements as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2008, except for the impact of the adoption of the Standards and Interpretations described below:- IFRS 8 Operating Segments (effective for annual periods beginning on or after 1 January 2009) IFRS 8 is a disclosure Standard that has resulted in a redesignation of the Group's reportable segments (see note 7), but has had no impact on the reported results or financial position of the Group. IAS 1 (revised 2007) Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009) The revised Standard has introduced a number of terminology changes (including revised titles for the condensed financial statements) and has resulted in a number of changes in presentation and disclosure. However, the revised standard has had no impact on the reported results or financial position of the Group. The consolidated financial statements are presented in US Dollars ("US$") and all values are rounded to the nearest US$ '000 except where otherwise indicated.
The Interim Report for the six months ended 30 June 2009 was approved by the Directors on 16 September 2009.
Foreign tax:
Deferred tax:
position
ordinary activities
Interim period income tax is accrued based on the estimated average annual effective income tax rate of 19% (Interim period 2008: 16%).
Authorised:
of US$0.02 each
Issued:
US$0.02 each
On 15 May 2009, 2,424,291 new ordinary shares were issued to shareholders of K2 Specialist Services Pte Ltd ("K2"), pursuant to an agreement dated 19 October 2007 between K2 and Velosi Industries Sdn Bhd, following the satisfaction of the entire profit guarantee of SGD4,000,000 (approximately £1.34 million) aggregate profit after tax and minority interests, set for the stipulated guarantee period.
The basic and diluted earnings per share is calculated by reference to the earnings attributable to ordinary shareholders divided by the number of shares in issue as at 30 June 2009, as follows:
minority interest
shares for the purpose of
calculating basic earnings per
share
Effect of dilutive potential
ordinary shares:
shares for the purpose of
calculating diluted earnings
per share
Earnings per ordinary share
A final dividend of US$435,000 (representing 1 cent per share) in respect of the financial year ended 31 December 2008 was paid on 31 July 2009.
The Directors do not propose to pay an interim dividend. The Directors do intend, subject to the availability of distributable reserves, to recommend a final dividend to shareholders in respect of the financial year ending 31 December 2009.
The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance. In contrast, the predecessor Standard (IAS 14 Segment Reporting) required an entity to identify two sets of segments (business and geographical), using a risks and rewards approach, with the entity's "system of internal financial reporting to key management personel" serving only as the starting point for the identification of such segments. As a result, following the adoption of IFRS 8, the identification of the Group's reportable segments has changed.
2009
Adjustments listed above relate to the following:
2008
Adjustments listed above relate to the following:
difference
companies
Acquired intangible assets which consist of customer lists acquired are valued at cost less accumulated amortisation. Amortisation is calculated using the straight line method over the expected useful life ranging from 5 and 10 years.
difference
companies
The provisional deferred consideration consists of cash and shares.
The Group's business operations are not seasonal.
During the period, the Group acquired new plant and machinery at a cost of US$1,761,000 (2008: US$1,350,000). The Group also disposed of plant and machinery with net book value of US$11,000 (2008: US$128,000).
Investment in associated companies has increased as a result of the share of net profit of associated companies, foreign exchange translation difference and dividend from associated companies.
The following table provides the total amount of transactions, which have been entered into with related parties for the relevant financial year:
Related parties
Associated companies
2008 407 17 - Term and conditions of transactions with related parties The above transactions were entered into in the normal course of business and were carried out on an arms-length basis. Amount due from related party
The amount due from related party included under current assets represents unsecured interest free advances repayable on demand. The related party is Velosi (M) Sdn Bhd. Included in trade and other receivables is an amount of US$1.247 million (2007: US$0.391 million) pledged as security for bank guarantee facilities.
Current
Non-current
These interim results will be available on the Company's website www.velosi.com. Further copies can be obtained from the registered office at Walker House, PO Box 72, 28-34 Hill Street, St Helier, Jersey JE4 8PN Channel Islands. This information is provided by RNS The company news service from the London Stock Exchange END
IR CKKKDBBKBKCB More |
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| Date/Time | Subject | Author | ||
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| 06-11-09 |
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The company announced earlier this week that it had finally come to an agreement with the estate of the murdered former manager in Nigeria to acquire the Angolan and Nigerian subsidiaries and these should contribute to earnings from next year onwards after a two year gap.
Apparently, adequate provisions have already been made in prior year accounts for these two acquisitions and the extra revenue therefrom should prompt house broker, Charles Stanley, to modestly upgrade its 2010 forecast e.p.s of 14.4p to nearer 15p - IMHO. So the shares now look even cheaper and it's interesting that trading volume has been very much higher on two consecutive days this week. More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
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| 01-11-09 | ||||
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In contrast to larger cash-rich peer group stocks like Amec, Petrofac etc where a significant part of their b/s liquidity represents advance payments from customers, Velosi's cash deposits are largely its own, generated from surplus cash flow over time. As at 30/6/09, these totalled US$15.8m net equal to c20p per share at the current exchange rate of $1.64. Based on house broker Charles Stanley's forecasts and excluding interest received from prospective earnings, the adjusted "ex-cash" '09 p/e is just 4.9x falling to 4.6x for 2010. Crazy!!
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| 29-10-09 | ||||
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Shell results down seem to have spooked a few. Worth repeating from last results that Velo have kept existing contracts and are increasing market share to compensate for slowdown in the industry.
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| 28-10-09 | ||||
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Doesn't look like it to me as the conclusion is "bearish short term" and "neutral long term"!! A lot of mumbo-jumbo IMHO.
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