Expro International Group PLC
22 March 2005
Embargoed until 07.00 on Tuesday 22 March 2005
EXPRO INTERNATIONAL GROUP PLC
Pre-Close Trading Update for the Year Ended 31 March 2005
Expro International Group PLC ("Expro") announces today that trading during the
second half of the year ended 31 March 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 crystalisation 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.
Whilst 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 on 9 and
18 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 2nd June 2005.
- Ends -
Note to Editors:
Expro International Group PLC is a leading upstream oil and gas technology and
service provider, specialising in well performance and production optimisation.
Its products and services are packaged into three distinct business segments:
Cased Hole Services, Subsurface Systems, and Surface and Environmental Systems.
The Expro Group employs over 2,000 people worldwide and is an innovative leader
in oilfield technology which enables clients to maximise recovery of their
reserves. For more information, please refer to the Group's website at
www.exprogroup.com
For further information please contact:
Expro International Group PLC Until 23 March 2005: 01224 225 963
Graeme Coutts, Chief Executive Thereafter on 0118 9591 341
Michael Speakman, Finance Director
Weber Shandwick Square Mile 020 7067 0700
Mike Kirk / Rachel Taylor / Stephanie Badjonat
This information is provided by RNS
The company news service from the London Stock Exchange
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