News

Velosi profits surge; current trading in line

21 April 2008 07:57:00

Sustained high levels of activity in the oil and gas sector have continued to drive demand for Velosi’s core services across the globe.

The company reported a 43% increase in pre-tax profit in 2007 to $11.43m from $7.98m in 2006, on revenue that increased 67% to $117m from $70.21m.

Fully diluted earnings per share dipped to $0.18 from $0.20, reflecting the dilution of the share capital following the group’s reorganisation in 2006 prior to its flotation.

The recent acquisitions of K2 Specialist Services and Intec UK have proved to be immediately earnings enhancing, contributing $1.5m to the group’s $11.2m operating profit in 2007.

Trading for the first three months of the current year have been in line with management’s expectations, giving the board cause for confidence for 2008 and beyond.

“The outlook is that world oil and gas prices should continue to remain high, underpinning sustained high levels of activity and investment in the oil and gas sector,” said John Hogan, chairman of Velosi. “This will lead to continuing demand and growth for Velosi's core service businesses,” he aded.

The board has proposed an unchanged final dividend of $0.01. Though the company intends to continue paying dividends in the future, the bulk of its earnings will be retain to fund the development of the business.

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