Trading Statement

RNS Number : 5384Z

Velosi Limited

22 July 2008

 

Velosi Limited

Pre-close statement and Notification of Results

Velosi Limited ('Velosi' or the 'Group'), the AIM listed provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, is pleased to provide an update on trading for the six months ended 30 June 2008. 

During the period, market conditions remained favourable, with sustained high levels of activity and investment in the oil and gas sector continuing to generate demand for Velosi's core services. The Group also benefited from its expansion into new regions such as Angola, Ghana, Vietnam, and Indonesia during the period and continued to win new contracts both from existing and new clients.

Velosi continued to experience strong revenue growth during the period, with the focus of the Group concentrated on expanding Velosi's position within the new regions of operation and consolidating the acquisitions announced in 2007. With recently won contracts commencing in the coming months, the Board expects profits to be more heavily weighted to the second half of the current financial year. Velosi's cash position remains robust, with a cash balance of approximately USD15.9 million as at 30 June 2008.

In Nigeria, negotiations are ongoing with Richard Ogunmakin's estate regarding the future ownership and operation of Velosi Nigeria. There is no certainty that the outcome of these negotiations will be favourable to the Group. The Group remains confident however, that any reduction in the contribution from Nigeria will be compensated for by the significant growth in revenues from both existing and new regions, such as Europe and Angola. 

As a result of all the above factors, the Board remains confident that Velosi will continue to grow and generate excellent returns during the remainder of 2008 and beyond. Trading for the full year, ending 31 December 2008, is in line with market expectations.

Velosi will be announcing its Interim Results for the six months ended 30 June 2008 on 22 September 2008. 

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For further information, please contact:

Velosi	Dr Nabil Abdul Jalil Dan Ooi	020 7930 0777
Strand Partners	James Harris Warren Pearce	020 7409 3494
Charles Stanley Securities	Mark Taylor Freddy Crossley	020 7149 6000
Cardew Group	Tim Robertson Shan Shan Willenbrock Catherine Maitland	020 7930 0777

 

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