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(VELO.L) Velosi Ltd Buy/Sell

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Date/Time	Headline	Source
1
03-11-09	Velosi Limited - Agreement Re Velosi Nigeria	RNS
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. END- For further information, please contact: `Velosi Dr Nabil Abdul Jalil 020 7930 0777` `Joe Vincent` `Strand Partners James Harris 020 7409 3494` `Charles Stanley Securities Mark Taylor 020 7149 6000` `Freddy Crossley` `Cardew Group Tim Robertson 020 7930 0777` `Catherine Maitland` This information is provided by RNS The company news service from the London Stock Exchange END AGRUURVRKRRARAA More
15-10-09	Velosi Limited - Change of Name of Nominated Adviser	RNS
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 `James Harris Tel: +44(0)207 409 3494` `Richard Tulloch Tel: +44(0)207 409 3494` www.strandhanson.co.uk This information is provided by RNS The company news service from the London Stock Exchange END MSCEAKESFLLNFFE More
21-09-09	Velosi Limited - Half Yearly Report	RNS
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 CONTINUING A TRACK RECORD OF SIGNIFICANT GROWTH: `H109 H108 %` `Turnover US$89.2m US$77.3m 15.4` `Profit before tax US$7.9m US$7.2m 10.4` `Earnings per share 11.2c 10.4c 8.2` AS AT 30 JUNE 2009, THE COMPANY HAD NET CASH RESERVES OF US$19.7 MILLION STEADY FLOW OF NEW CONTRACT WINS COUPLED WITH 100% RETENTION OF EXISTING CONTRACTS UNDERPINS GOOD VISIBILITY ON FUTURE REVENUES TIGHTENED COST BASE TOGETHER WITH IMPROVED CASH GENERATION HAS STRENGTHENED THE COMPANY'S FINANCIAL BASE TRADING IS IN LINE WITH EXPECTATIONS 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: `Velosi Dr Nabil Abdul Jalil 020 7930 0777` `Dan Ooi` `Strand Partners James Harris 020 7409 3494` `Charles Stanley Securities Mark Taylor 020 7149 6000` `Freddy Crossley` `Cardew Group Tim Robertson 020 7930 0777` `Shan Shan Willenbrock` `Catherine Maitland` 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 `Six months ended Six months ended Year ended` `30 June 2009 30 June 2008 31 December 2008` `US$'000 US$'000 US$'000` `(unaudited) (unaudited) (audited)` `Note` `Revenue 7 89,187 77,306 182,072` `Cost of sales (67,832) (58,232) (136,509)` -------------- -------------- --------------- `Gross profit 21,355 19,074 45,563` `Other operating income 735 28 883` `Administrative expenses (14,921) (12,083) (32,057)` -------------- -------------- --------------- `Operating profit 7,169 7,019 14,389` `Finance costs (117) (269) (533)` `Share of profit of associated 865 418 1,006` companies -------------- -------------- --------------- `Profit on ordinary activities 7,917 7,168 14,862` before tax `Income tax expense 3 (1,520) (1,160) (3,208)` -------------- -------------- --------------- `Profit for the period 6,397 6,008 11,654` -------------- -------------- --------------- Other comprehensive income: `Exchange differences on 785 - (2,828)` translating foreign operation -------------- -------------- --------------- `Other comprehensive income for 785 - (2,828)` the period net of tax -------------- -------------- --------------- `________ ________ ________` `Total comprehensive income for 7,182 6,008 8,826` the period `________ ________ ________` Profit attributable to: `Owners of the parent 5,057 4,410 9,306` `Non - continuing interest 1,340 1,598 2,348` `________ ________ ________` `6,397 6,008 11,654` `________ ________ ________` Total comprehensive income attributable to: `Owners of the parent 5,537 4,410 7,205` `Non - continuing interest 1,645 1,598 1,621` `________ ________ ________` `7,182 6,008 8,826` `________ ________ ________` `Basic earnings per share 5 11.2 cents 10.4 cents 21.7 cents` `Diluted earnings per share 5 11.0 cents 9.4 cents 19.6 cents` VELOSI LIMITED Consolidated Statement of Financial Position As at 30 June 2009 `30 June 30 June 31 December` 2009 2008 2008 `US$'000 US$'000 US$'000` `(unaudited) (unaudited) (audited)` `Note` Assets Non-current assets `Goodwill 8,646 7,341 8,307` `Other intangible assets 8 1,598 1,549 1,744` `Property, plant and 11 9,314 7,325 8,261` equipment `Investment in associated 12 1,364 1,247 1,338` companies `Other investments - 9 -` `Deferred tax assets 450 42 400` -------------- -------------- --------------- `21,372 17,513 20,050` -------------- -------------- --------------- Current assets `Cash and cash equivalents 22,445 15,881 20,641` `Inventories 4,080 4,610 2,271` `Trade and other receivables 60,322 54,626 63,852` `Tax recoverable 85 450 126` -------------- -------------- --------------- `86,932 75,567 86,890` -------------- -------------- --------------- `Non-current asset held for - 900 -` sale `________ ________ _______` `Total assets 108,304 93,980 106,940` `________ ________ ________` Equity and liabilities Capital and reserves `Share capital 935 869 887` `Share premium 33,801 30,226 32,422` `Translation reserve (1,685) (63) (2,164)` `Retained earnings 29,135 19,291 23,917` -------------- -------------- --------------- `Total equity attributable to 62,186 50,323 55,062` equity holders `Minority interest 8,803 7,241 7,293` -------------- -------------- --------------- `Total equity 70,989 57,564 62,355` -------------- -------------- --------------- VELOSI LIMITED Consolidated Statement of Financial Position As at 30 June 2009 `30 June 30 June 31 December` 2009 2008 2008 `US$'000 US$'000 US$'000` `(unaudited) (unaudited) (audited)` `Note` Current liabilities `Trade and other payables 28,166 22,359 33,605` `Bank and other borrowings 14 2,824 5,577 3,581` `Current tax liabilities 2,493 2,592 2,421` `Deferred consideration 9 1,260 3,984 2,673` -------------- -------------- --------------- `34,743 34,512 42,280` -------------- -------------- --------------- Non-current liabilities `Deferred tax liabilities 36 20 37` `Bank and other borrowings 14 1,531 1,549 1,276` `Other non-current 1,005 335 992` liabilities -------------- -------------- --------------- `2,572 1,904 2,305` -------------- -------------- --------------- -------------- -------------- --------------- `Total liabilities 37,315 36,416 44,585` -------------- -------------- --------------- `________ ________ _______` `Total equity and liabilities 108,304 93,980 106,940` `________ ________ ________` VELOSI LIMITED Consolidated Statement of Cash Flow For the six months ended 30 June 2009 `Six months ended Six months ended Year ended` `30 June 2009 30 June 2008 31 December 2008` `US$'000 US$'000 US$'000` `(unaudited) (unaudited) (audited)` `Net cash from / (used in) 4,538 (513) 9,928` operating activities `________ ________ ________` Cash flows from investing activities `Acquisition of property, plant (1,338) (1,310) (2,687)` and equipment `Receipts from sale of 11 128 448` property, plant and equipment `Acquisition of new subsidiary - - (1,168)` companies, net of cash `(Advance to) / repayment from (738) 228 (358)` associated companies `Dividend income from 777 - 414` associated company `Interest received 31 140 244` `________ ________ ________` `Net cash used in investing (1,257) (814) (3,107)` activities `________ ________ ________` Cash flows from financing activities `Proceeds from issue of shares - 8,660 8,660` `Share issue expenses - (391) (445)` `Net borrowings (374) 216 (383)` `(Repayment to) / advance from (101) (402) 437` related party `(Repayment to) / advance from (367) (54) 109` directors `Dividend paid to shareholders - - (435)` `Dividend paid to minority (135) (86) (208)` shareholders of subsidiary companies `________ ________ ________` `Net cash (used in) / from (977) 7,943 7,735` financing activities `________ ________ ________` `Net increase in cash and cash 2,304 6,616 14,556` equivalents `Foreign exchange translation 50 - (876)` differences `Cash and cash equivalents at 17,791 4,111 4,111` the beginning of the period `________ ________ ________` `Cash and cash equivalents at 20,145 10,727 17,791` the end of the period `________ ________ ________` Cash and cash equivalents comprise: `Current assets - Cash and cash 22,445 15,881 20,641` equivalents `Current liabilities - Bank (2,300) (5,154) (2,850)` overdraft `________ ________ ________` `20,145 10,727 17,791` `________ ________ ________` VELOSI LIMITED Consolidated Statement of Changes in Equity For the six months ended 30 June 2009 `Unaudited Share capital Share premium Reserves Total Minority interest Total equity` `US$'000 US$'000 US$'000 US$'000 US$'000 US$'000` `Balance at 1 January 2008 787 21,310 14,653 36,750 5,729 42,479` `Share allotment 82 8,916 - 8,998 - 8,998` `Total comprehensive income - - 4,410 4,410 1,598 6,008` `Issue of share options - - 165 165 - 165` `Dividend paid - - - - (86) (86)` `________ ________ ________ _______ _______ ________` `Balance at 30 June 2008 869 30,226 19,228 50,323 7,241 57,564` `________ ________ ________ _______ _______ ________` `Balance at 1 July 2008 869 30,226 19,228 50,323 7,241 57,564` `Share allotment 18 2,196 - 2,214 - 2,214` `Total comprehensive income - - 2,795 2,795 23 2,818` `Acquisition of subsidiary - - - - 151 151` `Issue of share options - - 165 165 - 165` `Dividend paid - - (435) (435) (122) (557)` `________ ________ ________ _______ _______ ________` `Balance at 31 December 2008 887 32,422 21,753 55,062 7,293 62,355` `________ ________ ________ _______ _______ ________` `Balance at 1 January 2009 887 32,422 21,753 55,062 7,293 62,355` `Share allotment 48 1,379 - 1,427 - 1,427` `Total comprehensive income - - 5,537 5,537 1,645 7,182` `Issue of share options - - 160 160 - 160` `Dividend paid - - - - (135) (135)` `________ ________ ________ _______ _______ ________` `Balance at 30 June 2009 935 33,801 27,450 62,186 8,803 70,989` `________ ________ ________ _______ _______ ________` VELOSI LIMITED `1. General information` 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. `2. Basis of preparation and significant accounting policies` 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. `3. Income tax expense` `Six months Six months Year ended31 December 2008US$'000` `ended30 June ended30 June` `2009US$'000 2008US$'000` `(unaudited) (unaudited) (audited)` Foreign tax: `Overseas tax payable 1,499 1,163 3,446` `Total current tax 1,499 1,163 3,446` Deferred tax: `Movement in deferred tax (51) (42) (352)` position `Taxation on profit from 1,448 1,121 3,094` ordinary activities `Add: Share of taxation of 72 39 114` `associated companies` `1,520 1,160 3,208` Interim period income tax is accrued based on the estimated average annual effective income tax rate of 19% (Interim period 2008: 16%). `4. Share capital` `(a) Share capital (unaudited)` `2009US$'000 2008US$'000` Authorised: `4,400,000,000 (2008: 4,400,000,000) Ordinary shares 88,000 88,000` of US$0.02 each Issued: `46,765,871 (2008: 44,341,580) Ordinary shares of 935 887` US$0.02 each `(b) Share issued during the period (unaudited)` `Issue value per share Shares Share Share` `capital premium` `GBP US$ US$'000 US$'000` `At 1 January 2009 44,341,580 887 32,422` `Shares issued on 15 May 2009 0.39 0.59 2,424,291 48 1,379` `46,765,871 935 33,801` 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. `5. Earnings per share` 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: `Six months ended30 Six months Year ended31` `June 2009USD'000 ended30 June December 2008USD'000` `2008USD'000` `(unaudited) (unaudited) (audited)` `Profit after taxation and 5,057 4,410 9,306` minority interest `Number Number Number` `Weighted average number of 44,971,092 42,419,424 42,809,629` shares for the purpose of calculating basic earnings per share Effect of dilutive potential ordinary shares: `Share options - 2,067,708 -` `Warrants - 476,749 -` `Deferred consideration 834,575 1,853,193 4,463,847` `Weighted average number of 45,805,667 46,817,074 47,273,476` shares for the purpose of calculating diluted earnings per share Earnings per ordinary share `Basic earnings per share 11.2 cents 10.4 cents 21.7 cents` `Diluted earnings per share 11.0 cents 9.4 cents 19.6 cents` `6. Dividends` A final dividend of US$435,000 (representing 1 cent per share) in respect of the financial year ended 31 December 2008 was paid on 31 July 2009. The Directors do not propose to pay an interim dividend. The Directors do intend, subject to the availability of distributable reserves, to recommend a final dividend to shareholders in respect of the financial year ending 31 December 2009. `7. Segmental reporting` The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance. In contrast, the predecessor Standard (IAS 14 Segment Reporting) required an entity to identify two sets of segments (business and geographical), using a risks and rewards approach, with the entity's "system of internal financial reporting to key management personel" serving only as the starting point for the identification of such segments. As a result, following the adoption of IFRS 8, the identification of the Group's reportable segments has changed. `Europe Middle East Americas Africa Australasia Central Asia Others Adjustment Consolidated` `US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000` 2009 `Turnover 23,666 35,749 9,663 15,086 14,105 487 - (9,569) 89,187` `Gross profit 3,796 7,197 1,734 1,430 4,689 292 - 2,217 21,355` `Profit / (loss) before tax 1,036 4,489 145 (552) 1,276 75 (600) 2,048 7,917` Adjustments listed above relate to the following: `Share of profit of associates, net of taxation 793 793` `Segment assets 24,062 42,500 11,914 20,718 31,861 552 36,684 (59,987) 108,304` `Segment liabilities 21,082 21,426 10,869 18,240 21,011 560 2,338 (58,211) 37,315` 2008 `Turnover 21,205 27,766 10,609 9,307 13,122 - 2,128 (6,831) 77,306` `Gross profit 3,327 6,265 1,918 1,881 4,375 - 939 369 19,074` `Profit / (loss) before tax 1,100 3,748 274 421 1,892 - (766) 499 7,168` Adjustments listed above relate to the following: `Share of profit of associates, net of taxation 379 379` `Segment assets 18,540 31,963 11,914 16,340 27,242 - 33,946 (45,965) 93,980` `Segment liabilities 16,435 16,812 10,816 13,157 20,104 - 2,550 (43,458) 36,416` `8. Other intangible assets` `30 June 30 June 31 December2008USD'000` `2009 USD'000 2008 USD'000` `(unaudited) (unaudited) (audited)` `At 1 January 1,744 1,662 1,662` `Foreign exchange translation 23 - (124)` difference `Acquisition of subsidiary - - 537` companies `Amortisation (169) (113) (331)` `1,598 1,549 1,744` 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. `9. Deferred consideration` `30 June 30 June 31 December2008USD'000` `2009USD'000 2008USD'000` `(unaudited) (unaudited) (audited)` `At 1 January 2,673 4,477 4,477` `Foreign exchange translation 15 - (312)` difference `Acquisition of subsidiary - - 1,269` companies `Consideration settled (1,428) (493) (2,761)` `1,260 3,984 2,673` The provisional deferred consideration consists of cash and shares. `10. Seasonality` The Group's business operations are not seasonal. `11. Property, plant and equipment` 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$128,000). `12. Investment in associated companies` Investment in associated companies has increased as a result of the share of net profit of associated companies, foreign exchange translation difference and dividend from associated companies. `13. Related party transactions` The following table provides the total amount of transactions, which have been entered into with related parties for the relevant financial year: `Sales to related Purchases from Rental received and` `parties related parties receivable from related` `parties` `US$'000 US$'000 US$'000` Related parties `Velosi (M) Sdn Bhd 2009 1,349 34 -` `2008 1,447 101 31` Associated companies `Velosi LLC 2009 819 17 -` 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$0.391 million) pledged as security for bank guarantee facilities. `14. Bank and other borrowings` `30 June 30 June 31 December 2008` `2009 2008 US$'000` `US$'000 US$'000` `(unaudited) (unaudited) (audited)` Current `Bank overdrafts 2,300 5,154 2,850` `Bank loan 76 128 73` `Hire purchase 448 295 658` `2,824 5,577 3,581` Non-current `Bank loan 356 1,069 343` `Hire purchase 1,175 480 933` `1,531 1,549 1,276` `4,355 7,126 4,857` 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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Registered Office: Standon House, 21 Mansell Street, London E1 8AA, telephone 0845 88 00 267. Registered in England with Company Registration number 3699618.
Group VAT registration number 832 6732 26.
We may record and/or monitor telephone calls or intercept other telecommunications between us. This is to protect both of us and for training purposes.