Interim Results

RNS Number : 0762Y

Hunting PLC

27 August 2009

 



For Immediate Release

27 August 2009

Hunting PLC

('Hunting' or the 'Company')

Half Year Results

Hunting PLC (LSE:HTG), the international energy services company today announces its Half Year Results for the six months ended 30 June 2009.

Financial Highlights*

 

·          Revenue from continuing operations increased to £219.8m (2008: £201.2m)	+9%
·          Profit from continuing operations decreased to £23.0m (2008: £24.0m)	-4%
·          Profit before tax from continuing operations increased to £26.5m (2008: £21.4m)	+24%
·          Basic earnings per share from continuing operations 12.3p (2008: 9.7p)	+27%
·          Interim dividend of 3.5p (2008: 2.9p)	+21%
·          Net cash inflow from operating activities £36.2m (2008: £15.4m)
·          Net cash of £387.6m

 * all figures stated before exceptional items and for continuing operations only

 

Corporate Highlights

 

·          Two acquisitions completed:

o    National Coupling Company for a consideration of US$53.8m in June 2009

o    PT SMB Industri for a consideration of US$10.7m in July 2009

·          Appointment of John Nicholas and John Hofmeister as non-executive directors.

 

Operational Highlights

 

·          Revenue in Well Construction decreased by 1% to £48.9m (2008: £49.5m)

o    Profit from operations of £3.5m (2008: £5.8m)

·          Revenue in Well Completion increased by 17% to £105.2m (2008: £89.6m)

o    Profit from operations of £12.9m (2008: £11.8m)

·          Revenue in Well Intervention increased by 10% to £12.3m (2008: £11.2m)

o    Profit from operations of £1.8m (2008: £1.9m)

·          Exploration and Production breakeven in the period (2008: profit £3.0m)

·          Hunting Energy France profit from operations increased to £0.9m (2008: £0.8m)

·          Gibson Shipbrokers profit from operations of £0.3m (2008: £1.6m)

·          Field Aviation profit from operations of £3.6m (2008: loss £0.9m)

 

Commenting on the results, Dennis Proctor Chief Executive of Hunting PLC said:

'Despite the continuing uncertainty in the economic environment, Hunting remains well positioned for the inevitable global recovery, with a diversified product offering and geographic revenue mix. We have successfully executed two acquisitions which are already contributing to our results.

'With an extremely robust balance sheet we continue to evaluate further acquisition opportunities, whilst also focusing on costs and production efficiencies. These combined efforts provide us with a confident long term outlook, which is reflected in our significantly increased interim dividend.'

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Communications Ben Willey Richard Darby	Tel: [phone]

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, France, Holland, Hong Kong, Indonesia,  Mexico, Singapore, United Arab Emirates and the United States of America.

Half Year Management Report

Hunting PLC, the international energy services company, announces its half year results for the six months ended 30 June 2009.

Introduction

Despite the global recession and the significant decline in energy commodity prices, the Company grew revenues by close to 10% and reports a 24% increase in profit before tax from continuing operations against the same period in 2008. In line with our strategy to make earnings enhancing acquisitions, we have completed two acquisitions. Houston, Texas based National Coupling Company ('NCC'), a leading supplier of proprietary couplings, valves and chemical injection systems for deep water applications, was acquired in June 2009 for US$53.8m. PT SMB, a premium threading facility in Batam, Indonesia, was purchased in July 2009 for US$10.7m and added much needed capacity for the Company's Middle East and Asian operations.

Financial Summary

Revenue from continuing operations for the half year to 30 June 2009 increased to £219.8m from £201.2m reported for the 2008 comparative period. Profit from continuing operations was £23.0m (2008 - £24.0m) with profit before tax from continuing operations increasing by 24% to £26.5m from £21.4m reported in 2008. Net interest switched from a charge in 2008 of £2.9m to income of £3.3m in 2009 reflecting the receipt of Gibson Energy proceeds received in December 2008.

Additional proceeds of £17.6m were received in April 2009 from the sale of Gibson Energy and the gain on recognition of these has been offset by an increase in related provisions of £16.0m for indemnities, warranties and corporation tax.

Profit after tax from continuing operations was £18.0m (2008 - £14.2m) after a tax charge of £8.5m (2008 - £7.2m), reflecting an effective tax rate of 32% (2008 - 33%).

Average exchange rates used to translate US and Canadian results into £-Sterling were US$1.49 (2008 - US$1.98) and Can$1.80 (2008 - Can$1.99).

Capital expenditure reduced to £11.0m in the period (2008 - £15.8m) of which £5.8m (2008 - £11.3m) was replacement expenditure and £5.2m (2008 - £4.5m) was new business expenditure. Replacement expenditure includes £0.3m (2008 - £5.4m) capital expenditure by our Exploration and Production division.

Net cash at 30 June 2009 was £387.6m (2008 - net debt £139.7m).

Basic earnings per share from continuing operations increased by 27% to 12.3p (2008 - 9.7p).

A dividend for the half year of 3.5p per share (2008 - 2.9p) will be paid on 20 November 2009 to shareholders on the register at the close of business on 30 October 2009.

The Group has changed its accounting policy from carrying property at valuation to carrying these at cost. This change in policy follows the disposal of Gibson Energy and with it the majority of the Group's freehold properties. The impact on the Group's continuing operations is not material and is explained in more detail within note 1. Prior period figures have been restated to reflect this change in policy.

Operational Review

Overall trading from our core Hunting Energy Services activities was satisfactory given current market conditions. Results have benefited from favourable exchange rates, however, trading margins have declined due to pricing pressures and reduced activity levels. Well Intervention operations are disclosed separately for the first time as this reflects a growing division of strategic importance.

Well Construction profit from operations decreased by 40% to £3.5m (2008 - £5.8m) as the rapid 56% decline in rig activity adversely affected trading particularly in the North American gas market.

  Half Year Management Report (continued)

Well Completion reported a 9% increase in profit from operations to £12.9m (2008 - £11.8m) benefiting from higher profits in the Middle East and Asian regions.

Well Intervention, which includes the results of newly acquired National Coupling Company, reported profit from operations of £1.8m (2008 - £1.9m). This higher margin division remains a focus for our expansion programme.

Exploration and Production reported breakeven results for the period (2008 - profit from operations £3.0m) due to low production and activity levels, coupled with lower commodity prices. The division drilled one well in the period, which was not commercially viable, resulting in costs being written off in the period of £0.2m.

Hunting Energy France reported an increase in profit from operations to £0.9m (2008 - £0.8m).

Gibson Shipbrokers profit from operations decreased to £0.3m (2008 - £1.6m) as shipping rates and activity levels declined.

Field Aviation reported excellent profit from operations of £3.6m compared to a loss of £0.9m in 2008. A strong backlog and a more focused business following closures at Field Aviation's Calgary operations in 2008 contributed to this trading result.

Board Changes

We are pleased to announce the appointment on Wednesday 26 August 2009 of two independent non-executive directors to the Board.

John Nicholas aged 53 is a British citizen and Fellow of the Association of Chartered Certified Accountants. He is currently a non-executive director of Ceres Power Holdings plc and Rotork PLC and a member of the Financial Reporting Review Panel. He was formerly the Group Finance Director at Tate & Lyle plc and prior to that Group Finance Director of Kidde plc.

John Hofmeister aged 61 is a US citizen resident in Houston, Texas.  He is the founder and chief executive officer of the Washington D.C. registered not-for-profit Citizens for Affordable Energy Inc.  He is the former President of Shell Oil Company US and a former Group Director of Royal Dutch Shell PLC in The Hague, Netherlands.

Both directors also join the Audit, Remuneration and Nomination Committees of the Board with immediate effect.

Hector McFadyen, who has been an independent non-executive director since 2002, will retire from the Board on 3 September 2009. The Board thank Hector for his valuable contribution and wish him well for the future.

There are no other details that require disclosure in respect of these directorate changes pursuant to Rule 9.6.13 of the Listing Rules.

Principal Risks and Uncertainties Facing the Business

The principal risks and uncertainties facing the business, which could have a material adverse impact on the Group, include commodity prices, effective control over subsidiaries, global recession, loss of key executives, health, safety and environmental laws and regulations and the ability to reinvest the Gibson Energy sale proceeds. These risks and uncertainties are discussed in more detail in the 2008 Annual Report and Accounts on page 13.

Other principal risks and uncertainties facing the Group for the remaining six months of the financial year are discussed below:

Adequacy of provisions

The Group holds £73.3m of provisions for warranties, indemnities and vacant leasehold properties. The timing and amount of any provisions that may be payable remains uncertain.

Half Year Management Report (continued)

Fluctuation in currency exchange rates

The Group has significant overseas operations, hence results are denominated in a variety of currencies. As a result, the Group's financial statements, which are reported in sterling, are subject to the effects of foreign exchange rate fluctuations with respect to currency conversions, together with the Group's ability to hedge these risks and the cost of such hedging.

Outlook

Trading conditions in the second half of 2009 will be challenging. Recent improvements in the oil price should benefit activity in all regions outside North America, but low natural gas prices in North America will continue to deter any recovery in drilling activity. Accordingly, employee levels within those facilities dependent upon North American drilling have been reduced by 32% resulting in £12.3m of annualised cost savings. The NCC and PT SMB acquisitions have strong backlogs and should make good contributions in the second half. Notwithstanding the current economic conditions, the long term fundamentals of the energy industry remain the same. Oil and gas reservoirs around the world are displaying higher decline rates and demand growth will follow the recession's end.

Your Company entered this year with a strong balance sheet, which will be used to add value through investment to:

1)	consolidate facilities for cost reduction and production efficiencies;

2)	acquire companies less focused on onshore gas drilling but toward deep water, high temperature/high pressure applications;

3)	develop proprietary products to increase market share; and

4)	place the Company in a position for maximum benefit from the inevitable recovery.

Underlining our confidence in the future strategy of the Company and the industry, the Board have approved a 21% increase in the half year dividend.

Richard Hunting	Dennis Proctor
Chairman	Chief Executive
27 August 2009

  Statement of Directors' Responsibilities

The Directors confirm that this condensed set of consolidated financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and that the half year management report includes a fair review of the information required by the Disclosure and Transparency Rules 4.2.7 and 4.2.8, namely:

 

·	an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

·	material related party transactions in the first six months and any material changes in the related party transactions described in the 2008 Annual Report and Accounts.

The Directors of the Company are listed on page 14 in Hunting PLC's 2008 Annual Report and Accounts. The following Board changes have been announced in the management report: John Nicholas and John Hofmeister were appointed as independent non-executive directors to the Board on 26 August 2009 and Hector McFadyen will retire on 3 September 2009. A list of current Directors is maintained on the Hunting PLC website: www.hunting.plc.uk

By order of the Board

Peter Rose

Finance Director 

27 August 2009

  Independent Review Report to Hunting PLC

Introduction

We have been engaged by the Company to review the condensed consolidated interim financial information in the half-yearly financial report for the six months ended 30 June 2009, which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the statement of changes in equity, the consolidated statement of cash flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial information.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial information in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information in the half-yearly financial report for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP 

Chartered Accountants 

London 

27 August 2009

Notes:

(a)	The maintenance and integrity of the Hunting PLC website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(b)	Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

  Consolidated Income Statement

(Unaudited)

						Restated		Restated
		Six months ended 30 June 2009				Six months	Year ended 31 December 2008
		Before				ended	Before
		exceptional	Exceptional			30 June	exceptional		Exceptional
		items	items		Total	2008	items		items		Total
	Notes	£m	£m		£m	£m	£m		£m		£m
Revenue	2	219.8	-		219.8	201.2	440.0		-		440.0
Cost of sales		(153.1)	-		(153.1)	(138.0)	(303.7)		(16.2)		(319.9)
Gross profit		66.7	-		66.7	63.2	136.3		(16.2)		120.1
Other operating income		1.1	-		1.1	1.0	4.7		-		4.7
Operating expenses		(44.8)	-		(44.8)	(40.2)	(79.9)		(34.7)		(114.6)
Profit from continuing     operations	2	23.0	-		23.0	24.0	61.1		(50.9)		10.2
Interest income		6.9	-		6.9	2.8	7.2		-		7.2
Interest expense and similar charges		(3.6)	-		(3.6)	(5.7)	(10.4)		-		(10.4)
Share of post-tax profits in     associates		0.2	-		0.2	0.3	1.2		-		1.2
Profit before tax from     continuing operations		26.5	-		26.5	21.4	59.1		(50.9)		8.2
Taxation	4	(8.5)	-		(8.5)	(7.2)	(19.5)		11.7		(7.8)
Profit for the period:
From continuing operations		18.0	-		18.0	14.2	39.6		(39.2)		0.4
From discontinued operations	5	-	1.6		1.6	21.0	39.2		268.1		307.3
Profit for the period		18.0	1.6		19.6	35.2	78.8		228.9		307.7
Attributable to:
Shareholders' of the parent		16.0	1.6		17.6	33.6	75.3		228.9		304.2
Minority interests		2.0	-		2.0	1.6	3.5		-		3.5
		18.0	1.6		19.6	35.2	78.8		228.9		307.7
Earnings per share
Basic:
From continuing operations	6				12.3p	9.7p					(2.4)p
From discontinued operations	6				1.2p	16.1p					234.8p
Group total					13.5p	25.8p					232.4p
Diluted:
From continuing operations	6				12.0p	9.3p					(2.4)p
From discontinued operations	6				1.2p	15.6p					234.8p
Group total					13.2p	24.9p					232.4p

The income statement for the six months ended 30 June 2008 did not contain any exceptional items.

The income statements for the year ended 31 December 2008 and for the six months ended 30 June 2008 have been restated to reflect the change in accounting policy from carrying property at valuation to carrying these at cost.

  Consolidated Statement of Comprehensive Income

(Unaudited)

		Restated	Restated
	Six months	Six months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2009	2008	2008
	£m	£m	£m
Profit for the period	19.6	35.2	307.7
Other comprehensive income after tax:
Exchange adjustments	(22.6)	(1.9)	40.4
Release of foreign exchange adjustments on disposal of     subsidiary	-	-	(13.8)
Fair value (loss) gain on available for sale financial assets     arising during the period	(2.1)	-	1.2
Fair value gains and losses:
- gains (losses) originating on cash flow hedges arising     during the period	0.6	0.2	(3.1)
- losses (gains) transferred to income statement on     disposal of cash flow hedges	2.4	(0.1)	0.4
Actuarial losses on defined benefit pension schemes	(0.1)	(12.3)	(14.4)
Other comprehensive income after tax	(21.8)	(14.1)	10.7
Total comprehensive income for the period	(2.2)	21.1	318.4
Attributable to:
Shareholders' of the parent	(3.8)	19.5	314.6
Minority interests	1.6	1.6	3.8
	(2.2)	21.1	318.4

  Consolidated Balance Sheet

(Unaudited)

				Restated		Restated		Restated
		At		At		At		At
		30 June		30 June		31 December		31 December
		2009		2008		2008		2007
		£m		£m		£m		£m
ASSETS
Non-current assets
Property, plant and equipment		111.8		101.1		119.6		241.8
Goodwill		47.8		40.9		29.3		72.4
Other intangible assets		4.5		1.8		1.2		13.9
Interests in associates		10.8		10.3		10.8		10.5
Available for sale investments		26.4		0.2		28.5		0.2
Retirement benefit assets		7.8		8.7		7.6		25.2
Trade and other receivables		1.4		1.6		1.6		2.8
Deferred tax assets		5.1		3.8		5.9		7.1
		215.6		168.4		204.5		373.9
Current assets
Inventories		112.5		82.3		124.3		142.1
Trade and other receivables		62.2		85.4		124.0		244.3
Investments		-		-		-		0.9
Cash and cash equivalents		414.3		61.2		421.4		79.8
Assets classified as held for sale		-		487.8		-		-
		589.0		716.7		669.7		467.1
LIABILITIES
Current liabilities
Trade and other payables		127.7		106.2		164.8		262.1
Current tax liabilities		15.9		11.3		13.6		7.1
Borrowings		26.3		81.7		49.1		89.2
Provisions		57.5		4.0		56.2		4.5
Liabilities classified as held for sale		-		263.5		-		-
		227.4		466.7		283.7		362.9
Net current assets		361.6		250.0		386.0		104.2
Non-current liabilities
Borrowings		0.4		124.8		-		130.7
Deferred tax liabilities		15.3		18.6		16.5		79.7
Retirement benefit obligations		-		-		-		1.1
Other payables		-		-		-		0.1
Provisions		15.8		8.3		16.7		15.4
		31.5		151.7		33.2		227.0
Net assets		545.7		266.7		557.3		251.1
Shareholders' equity
Share capital		33.0		33.0		33.0		32.9
Share premium		90.0		90.0		90.0		87.2
Other reserves		17.5		10.7		38.7		11.9
Retained earnings		391.4		120.4		383.4		108.1
		531.9		254.1		545.1		240.1
Minority interests		13.8		12.6		12.2		11.0
Total equity		545.7		266.7		557.3		251.1

  Statement of Changes in Equity

(Unaudited)

	Six months ended 30 June 2009
	Share	Share	Other	Retained		Minority	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Group
At 1 January	33.0	90.0	47.5	383.5	554.0	12.2	566.2
Change in accounting policy	-	-	(8.8)	(0.1)	(8.9)	-	(8.9)
At 1 January as restated	33.0	90.0	38.7	383.4	545.1	12.2	557.3
Total comprehensive    income for the period	-	-	(21.3)	17.5	(3.8)	1.6	(2.2)
Dividends	-	-	-	(9.2)	(9.2)	-	(9.2)
Purchase of Treasury shares	-	-	-	(1.5)	(1.5)	-	(1.5)
Disposal of Treasury shares	-	-	-	0.8	0.8	-	0.8
Share options
- value of employee services	-	-	0.5	-	0.5	-	0.5
- discharge	-	-	(0.4)	0.4	-	-	-
At 30 June	33.0	90.0	17.5	391.4	531.9	13.8	545.7

	Six months ended 30 June 2008
	Share	Share	Other	Retained		Minority	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Group
At 1 January	32.9	87.2	73.3	107.5	300.9	11.0	311.9
Change in accounting policy	-	-	(61.4)	0.6	(60.8)	-	(60.8)
At 1 January as restated	32.9	87.2	11.9	108.1	240.1	11.0	251.1
Total comprehensive    income for the period	-	-	(1.8)	21.3	19.5	1.6	21.1
Dividends	-	-	-	(7.5)	(7.5)	-	(7.5)
Shares issued
- share option schemes	-	0.2	-	-	0.2	-	0.2
- LTIP awards	0.1	2.6	-	-	2.7	-	2.7
Purchase of Treasury shares	-	-	-	(3.5)	(3.5)	-	(3.5)
Disposal of Treasury shares	-	-	-	1.6	1.6	-	1.6
Share options
- value of employee services	-	-	0.8	-	0.8	-	0.8
- discharge	-	-	(0.2)	0.2	-	-	-
- taxation	-	-	-	0.2	0.2	-	0.2
At 30 June	33.0	90.0	10.7	120.4	254.1	12.6	266.7

  Statement of Changes in Equity (continued)

(Unaudited)

	Year ended 31 December 2008
	Share	Share	Other	Retained		Minority	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Group
At 1 January	32.9	87.2	73.3	107.5	300.9	11.0	311.9
Change in accounting policy	-	-	(61.4)	0.6	(60.8)	-	(60.8)
At 1 January as restated	32.9	87.2	11.9	108.1	240.1	11.0	251.1
Total comprehensive    income for the year	-	-	24.8	289.8	314.6	3.8	318.4
Dividends	-	-	-	(11.3)	(11.3)	(2.6)	(13.9)
Shares issued
- share option schemes	-	0.1	-	-	0.1	-	0.1
- LTIP awards	0.1	2.6	-	-	2.7	-	2.7
Purchase of Treasury shares	-	-	-	(7.5)	(7.5)	-	(7.5)
Disposal of Treasury shares	-	-	-	2.6	2.6	-	2.6
- taxation	-	-	-	1.4	1.4	-	1.4
Share options
- value of employee services	-	-	2.4	-	2.4	-	2.4
- discharge	-	0.1	(0.4)	0.3	-	-	-
At 31 December	33.0	90.0	38.7	383.4	545.1	12.2	557.3

  Consolidated Statement of Cash Flows

(Unaudited)

		Restated	Restated
	Six months	Six months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2009	2008	2008
	£m	£m	£m
Operating activities
Continuing operations:
Profit from operations	23.0	24.0	10.2
Exceptional items	-	-	50.9
Depreciation, amortisation and impairment	7.7	8.1	17.2
Profit on disposal of investments	-	-	(0.1)
Loss on disposal of property, plant and equipment	1.1	1.7	2.0
Proceeds from disposal of property, plant and equipment       held for rental	1.4	1.5	2.6
Purchase of property, plant and equipment held for rental	(5.8)	(5.8)	(13.6)
Decrease (increase) in inventories	3.9	3.8	(21.9)
Decrease (increase) in receivables	53.9	(4.7)	(21.9)
(Decrease) increase in payables	(33.8)	(8.6)	28.1
Taxation paid	(9.8)	(3.8)	(8.7)
Other non-cash flow items	(5.4)	(0.8)	(3.8)
Discontinued operations	-	17.5	27.3
Net cash inflow from operating activities	36.2	32.9	68.3
Investing activities
Continuing operations:
Dividends received from associates	-	0.2	1.0
Purchase of subsidiaries	(32.1)	-	(1.6)
Disposal of subsidiaries	17.6	-	525.9
Net cash disposed of with subsidiary	-	-	(1.5)
Closure of business	-	-	(0.7)
Loans to associates	-	-	(0.4)
Loans to associates repaid	0.5	-	-
Loans from associates repaid	-	-	(1.5)
Loans from associates	0.3	0.9	-
Purchase of investments	-	(0.1)	(0.1)
Proceeds from disposal of property, plant and equipment	0.3	0.1	1.8
Purchase of property, plant and equipment	(5.2)	(10.0)	(21.4)
Discontinued operations	-	(20.9)	(35.2)
Net cash (outflow) inflow from investing activities	(18.6)	(29.8)	466.3
Financing activities
Continuing operations:
Interest received	6.8	2.5	6.1
Interest paid	(3.3)	(8.0)	(8.2)
Equity dividends paid	-	-	(11.3)
Minority interest dividend paid	-	-	(2.6)
Share capital issued	-	0.2	0.2
Purchase of treasury shares	(1.5)	(2.5)	(6.2)
Disposal of treasury shares	0.9	0.4	1.3
Proceeds from new borrowings	-	13.3	-
Repayment of borrowings	-	(4.4)	(162.2)
Repayment of deposits	-	0.9	0.9
Capital element of finance leases	(0.3)	(0.1)	(0.1)
Discontinued operations	-	0.1	(4.4)
Net cash inflow (outflow) from financing activities	2.6	2.4	(186.5)

  Consolidated Statement of Cash Flows (continued)

(Unaudited)

		Restated	Restated
	Six months	Six months	Year
	ended	ended	ended
	30 June	30 June	31 December
	2009	2008	2008
	£m	£m	£m
Net cash inflow in cash and cash equivalents	20.2	5.5	348.1
Cash and cash equivalents at the beginning of period	372.4	19.7	19.7
Effect of foreign exchange rates	(4.0)	-	4.6
Reclassified as held for sale	-	(5.6)	-
Cash and cash equivalents at end of period	388.6	19.6	372.4
Cash and cash equivalents and bank overdrafts at the end    of the period comprise:
Cash and cash equivalents	414.3	61.2	421.4
Bank overdrafts included in borrowings	(25.7)	(41.6)	(49.0)
	388.6	19.6	372.4

  Notes

1.

BASIS OF ACCOUNTING

The financial information contained in this half year report complies with IAS 34 Interim Financial Reporting, as adopted by the European Union, and with the Disclosure and Transparency Rules of the Financial Services Authority. The condensed consolidated interim financial information should be read in conjunction with the 2008 Annual Report and Accounts, which has been prepared in accordance with IFRS standards and IFRIC interpretations as adopted by the European Union. This half year report has been prepared using the same accounting policies and methods of computation used to prepare the 2008 Annual Report and Accounts, except for the change in accounting policy and the adoption of new standards and interpretations, noted below.

This half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 December 2008 has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 237 of the Companies Act 1985.

Adoption of new standards, amendments and interpretations  The following new standards, amendments and interpretations have been adopted for the six months ended 30 June 2009:

	•	IFRS 8 Operating Segments (see note 2 for details on adoption)
	•	IAS 23 (revised) Borrowing Costs
	•	IAS 1 (revised) Presentation of Financial Statements
	•	Amendment to IFRS 2 Share-based Payment - Vesting conditions and cancellations
	•	Amendments to IFRS 1 and IAS 27 - Cost of Investment in a Subsidiary, Jointly Controlled Entity or Associate
	•	Amendment to IAS 32 - Puttable Instruments and Obligations Arising on Liquidation
	•	Amendment to IFRS 7 Financial Instruments: Disclosure*
	•	Improvements to IFRSs - April 2009: Amendment to IFRS 8*
	•	Annual Improvements to IFRSs - May 2008
	•	IFRIC 12 Service Concession Arrangements
	•	IFRIC 13 Customer Loyalty Programmes Relating to IAS 18 Revenue
	•	IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction
	•	IFRIC 15 Agreements for the Construction of Real Estate
	•	IFRIC 16 Hedges of a Net Investment in a Foreign Operation
		* Not yet endorsed by the European Union, but adopted on the assumption that the Group expects the EU to endorse them and that they will be applicable in the 2009 Annual Report and Accounts.

IAS 1 (revised) Presentation of Financial Statements prohibits the presentation of items of income and expense ('non-owner changes in equity') in the statement of changes in equity, requiring non-owner changes in equity to be presented separately from owner changes in equity. All non-owner changes in equity are required to be shown in a performance statement. The Group has elected to present two statements; an income statement and a statement of comprehensive income. The half year financial statements have been prepared under the revised disclosure requirements.

The adoption of the amendment to IAS 16, part of the Annual Improvements to IFRSs - May 2008, requires those entities, whose activities include renting assets, to recognise rental income as revenue and to transfer the carrying amount of the assets to inventories when the assets become held for sale, and to present the carrying amount in cost of sales and the proceeds as revenue on the sale of those assets. A consequential amendment to IAS 7 states that the cash flows arising from the purchase, rental and sale of those assets are classified as cash flows from operating activities. The impact of this on the Group's accounts has been to reclassify net cash outflows of £4.3m for the six months ended 30 June 2008 and £11.0m for the year ended 31 December 2008 from investing activities to operating activities in the Consolidated Statement of Cash Flows.

Notes (continued)

1.	BASIS OF ACCOUNTING (continued)
	Although the adoption of the other standards, amendments and interpretations represents a change in accounting policy, comparative figures for 2008 have not been restated, as these changes do not impact the financial performance or position of the Group.

Standards adopted early by the Group The amendment to IFRS 8 relating to the disclosure of information about segment assets has been adopted early in 2009. As no information on segment assets is produced for internal reporting purposes, no segment asset information has been disclosed.

Change in accounting policy from carrying property at valuation to historic cost The Group has elected to change its accounting policy from carrying property at valuation to carrying it at cost under IAS 16 Property, Plant and Equipment. The accounting policy for depreciation remains unchanged. The property portfolio of the Group has reduced significantly following the disposal of Gibson Energy on 12 December 2008 and the significance of property, plant and equipment on the balance sheet has declined. In addition, the majority of Hunting's peers use the cost model and so the use of the cost model will improve comparability.

Prior year comparatives have been restated to reflect this change in policy, as required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

The impact of this change in accounting policy is set out below:

		Six months ended 30 June 2008 (as previously reported)	Change in accounting policy	Restated  Six months ended 30 June2008	Year ended 31December 2008 (as previously reported)	Change in accounting policy	Restated Year ended 31 December 2008
		£m	£m	£m	£m	£m	£m
	Consolidated Income Statement:
	Gross Profit	63.2	-	63.2	120.1	-	120.1
	Other operating income	1.0	-	1.0	4.7	-	4.7
	Operating expenses	(40.3)	0.1	(40.2)	(114.8)	0.2	(114.6)
	Net finance costs	(2.9)	-	(2.9)	(3.2)	-	(3.2)
	Share of post-tax profits in associates	0.3	-	0.3	1.2	-	1.2
	Taxation	(7.1)	(0.1)	(7.2)	(7.7)	(0.1)	(7.8)
	Profit from continuing operations	14.2	-	14.2	0.3	0.1	0.4
	Profit from discontinued operations	20.1	0.9	21.0	256.3	51.0	307.3
	Profit for the period	34.3	0.9	35.2	256.6	51.1	307.7
	Earnings per share:
	Basic EPS	25.0p	0.8p	25.8p	193.4p	39.0p	232.4p
	Diluted EPS	24.2p	0.7p	24.9p	187.4p	45.0p	232.4p
	Consolidated Statement of Comprehensive Income:
	Profit for the period	34.3	0.9	35.2	256.6	51.1	307.7
	Other comprehensive income after tax:
	Exchange adjustments	(3.4)	1.5	(1.9)	44.2	(3.8)	40.4
	Release of foreign exchange    adjustments on disposal of subsidiary	-	-	-	(18.0)	4.2	(13.8)
	Impairment of revalued assets	-	-	-	(0.4)	0.4	-
	Fair value gain on available for sale    financial asset	-	-	-	1.2	-	1.2
	Fair value gains and losses on cash flow    hedges	0.1	-	0.1	(2.7)	-	(2.7)
	Actuarial losses on defined benefit    pension schemes	(12.3)	-	(12.3)	(14.4)	-	(14.4)
	Other comprehensive income after tax	(15.6)	1.5	(14.1)	9.9	0.8	10.7
	Total comprehensive income for the period	18.7	2.4	21.1	266.5	51.9	318.4

  Notes (continued)

1.	BASIS OF ACCOUNTING (continued)

		Six months ended  30 June  2008 (as  previously reported)	Change in accounting policy	Restated  Six months ended  30 June 2008	Year  ended 31 December  2008 (as previously reported)	Change  in accounting  policy	Restated Year ended 31 December 2008
		£m	£m	£m	£m	£m	£m
	Consolidated Balance Sheet:
	Property, plant and equipment	111.8	(10.7)	101.1	130.6	(11.0)	119.6
	Assets classified as held for sale	553.1	(65.3)	487.8	-	-	-
	Liabilities classified as held for sale	(279.2)	15.7	(263.5)	-	-	-
	Deferred tax liabilities	(20.5)	1.9	(18.6)	(18.6)	2.1	(16.5)
	Other assets and liabilities	(40.1)	-	(40.1)	454.2	-	454.2
	Net assets	325.1	(58.4)	266.7	566.2	(8.9)	557.3
	Share capital	33.0	-	33.0	33.0	-	33.0
	Share premium	90.0	-	90.0	90.0	-	90.0
	Revaluation reserve	58.5	(58.5)	-	9.6	(9.6)	-
	Foreign currency translation reserve	6.0	(0.5)	5.5	33.1	0.8	33.9
	Retained earnings	119.8	0.6	120.4	383.5	(0.1)	383.4
	Other reserves	5.2	-	5.2	4.8	-	4.8
	Minority interests	12.6	-	12.6	12.2	-	12.2
	Total equity	325.1	(58.4)	266.7	566.2	(8.9)	557.3

2.	SEGMENT REPORTING

Business Segments Results from operations

IFRS 8 Operating Segments has been adopted from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and assess its performance. Segment reporting under IFRS 8 requires a presentation of the segment results based on management reporting methods and a reconciliation between the results of the business segments and the consolidated financial statements. As indicated in the Chief Executive's Review in the Annual Report and Accounts for 2008, a new segment, Well Intervention, has been identified and reported in internal management reports. Although the Well Intervention segment does not currently meet the requirements of a reportable segment, management has concluded that this segment should be reported as it is an area of strategic focus of the business and is expected to materially contribute to Group revenue in the future.

The following tables present the results of the business segments on the same basis as that used for internal reporting purposes. The information for the six months ended 30 June 2008 and the year ended 31 December 2008 has been re-presented to show the Well Intervention operating segment and to take into account the change in accounting policy from carrying property at valuation to carrying these at cost.

Hunting measures the performance of its operating segments based on revenue and profit from operations, which excludes any exceptional items. Accounting policies used for segment reporting reflect those used for the Group. Inter-segment sales are priced on an arms-length basis. Costs and overheads incurred centrally are apportioned to the operating segments on the basis of time attributed to those operations by senior executives.

  Notes (continued)

2.	SEGMENT REPORTING (continued)

		Six months ended 30 June 2009
		Total	Inter-			Profit
		gross	segmental	Total		from
		revenue	revenue	revenue		operations
		£m	£m	£m		£m
	Continuing operations:
	Hunting Energy Services
	Well Construction	50.7	(1.8)	48.9		3.5
	Well Completion	109.9	(4.7)	105.2		12.9
	Well Intervention	12.3	-	12.3		1.8
	Exploration and Production	3.1	-	3.1		-
	Hunting Energy France	10.8	-	10.8		0.9
		186.8	(6.5)	180.3		19.1
	Other Operating Divisions
	EA Gibson Shipbrokers	10.7	-	10.7		0.3
	Field Aviation	28.8	-	28.8		3.6
		39.5	-	39.5		3.9
	Total from continuing operations	226.3	(6.5)	219.8		23.0
	Net finance income					3.3
	Share of post-tax profits in associates					0.2
	Profit before tax from continuing operations					26.5

  Notes (continued)

2.	SEGMENT REPORTING (continued)

		Six months ended 30 June 2008 (restated)
		Total	Inter-			Profit
		gross	segmental	Total		from
		revenue	revenue	revenue		operations
		£m	£m	£m		£m
	Continuing operations:
	Hunting Energy Services
	Well Construction	54.0	(4.5)	49.5		5.8
	Well Completion	94.5	(4.9)	89.6		11.8
	Well Intervention	11.2	-	11.2		1.9
	Exploration and Production	7.2	-	7.2		3.0
	Hunting Energy France	9.0	-	9.0		0.8
		175.9	(9.4)	166.5		23.3
	Other Operating Divisions
	EA Gibson Shipbrokers	13.1	-	13.1		1.6
	Field Aviation	21.6	-	21.6		(0.9)
		34.7	-	34.7		0.7
	Total from continuing operations	210.6	(9.4)	201.2		24.0
	Net finance costs					(2.9)
	Share of post-tax profits in associates					0.3
	Profit before tax from continuing operations					21.4
	Discontinued operations:
	Gibson Energy
	Marketing	1,125.6	(124.9)	1,000.7		11.2
	Truck Transportation	70.0	(7.7)	62.3		7.0
	Terminals and Pipelines	242.1	(207.1)	35.0		10.9
	Propane Distribution and Marketing	119.4	-	119.4		4.6
	Moose Jaw Refinery	110.5	(40.9)	69.6		(0.5)
	Total from discontinued operations	1,667.6	(380.6)	1,287.0		33.2
	Net finance costs					(2.4)
	Profit before tax from discontinued operations					30.8

Profit from operations for Gibson Energy excludes depreciation and amortisation charges from 30 April 2008.

There were no exceptional items for the six months ended 30 June 2008.

  Notes (continued)

2.	SEGMENT REPORTING (continued)

			Year ended 31 December 2008 (restated)
									Profit
									from
									operations
			Total		Inter-				before
			gross		segmental		Total		exceptional		Exceptional
			revenue		revenue		revenue		items		items		Total
			£m		£m		£m		£m		£m		£m
	Continuing operations:
	Hunting Energy Services
	Well Construction		118.4		(6.4)		112.0		13.6		(13.4)		0.2
	Well Completion		193.6		(3.8)		189.8		26.8		(4.9)		21.9
	Well Intervention		23.3		-		23.3		4.6		-		4.6
	Exploration and    Production		14.8		-		14.8		5.9		(16.2)		(10.3)
	Hunting Energy France		21.5		-		21.5		2.0		-		2.0
			371.6		(10.2)		361.4		52.9		(34.5)		18.4
	Other Operating Divisions
	EA Gibson Shipbrokers		31.2		-		31.2		6.9		-		6.9
	Field Aviation		47.4		-		47.4		1.3		(2.8)		(1.5)
			78.6		-		78.6		8.2		(2.8)		5.4
	Total from continuing    operations		450.2		(10.2)		440.0		61.1		(37.3)		23.8
	Exceptional items not apportioned to business segments								-		(13.6)		(13.6)
	Profit from continuing operations								61.1		(50.9)		10.2
	Net finance costs								(3.2)		-		(3.2)
	Share of post-tax profits in associates								1.2		-		1.2
	Profit before tax from continuing operations								59.1		(50.9)		8.2
	Discontinued operations:
	Gibson Energy
	Marketing		2,567.8		(779.9)		1,787.9		6.6		-		6.6
	Truck Transportation		147.3		(18.1)		129.2		16.8		-		16.8
	Terminals and Pipelines		502.8		(434.1)		68.7		17.5		-		17.5
	Propane Distribution and    Marketing		229.5		(17.5)		212.0		7.7		-		7.7
	Moose Jaw Refinery		302.6		(129.6)		173.0		10.8		-		10.8
	Profit on disposal		-		-		-		-		258.8		258.8
	Total from discontinued    operations		3,750.0		(1,379.2)		2,370.8		59.4		258.8		318.2
	Net finance costs												(4.3)
	Share of post-tax losses in associates												(0.2)
	Profit before tax from discontinued operations												313.7

Profit from operations for Gibson Energy excludes depreciation and amortisation charges from 30 April 2008.

  Notes (continued)

3.	EXCEPTIONAL CHARGES

		Six months	Six months
		ended	ended	Year ended
		30 June	30 June	31 December
		2009	2008	2008
		£m	£m	£m
	Exceptional items comprise:
	Impairment of goodwill	-	-	16.3
	Impairment of property, plant and equipment	-	-	16.8
	Property provisions	1.5	-	10.6
	Other exceptional (credits) charges	(1.5)	-	7.2
		-	-	50.9

In the six months ended 30 June 2009, £1.5m of surplus provisions relating to warranties given in respect of a former subsidiary have been released and £1.5m of additional provisions have been booked following a reassessment of leasehold property exposures.

4.

TAXATION

The taxation charge for the six months ended 30 June 2009 is calculated by applying the estimated annual Group effective rate of tax to the profit for the period.

The estimated tax rate for the year ended 31 December 2009 for continuing operations is 32% and has been used for the six months ended 30 June 2009 (six months ended 30 June 2008 and year ended 31 December 2008 - 33%). The reduced effective rate of 32% is mainly due to an increase in profits in lower tax jurisdictions.

Included in the tax charge for the year ended 31 December 2008 is a credit of £11.7m in respect of exceptional items.

  Notes (continued)

5.	DISCONTINUED OPERATIONS

On 6 August 2008, the Group entered into an agreement for the sale of Gibson Energy Inc. (Gibson Energy), its midstream services operation. The sale was completed on 12 December 2008. The results from discontinued operations comprise the trading results of Gibson Energy and the gain on disposal as follows:

			Restated	Restated
		Six months	Six months	Year
		ended	ended	ended
		30 June	30 June	31 December
		2009	2008	2008
		£m	£m	£m
	Results of Gibson Energy:
	Revenue	-	1,287.0	2,370.8
	Cost of sales	-	(1,239.6)	(2,303.7)
	Gross profit	-	47.4	67.1
	Operating income	-	0.3	0.5
	Operating expenses	-	(14.5)	(8.2)
	Profit from operations	-	33.2	59.4
	Interest income	-	0.1	0.2
	Interest expense and similar charges	-	(2.5)	(4.5)
	Share of post-tax loss in associates	-	-	(0.2)
	Profit before tax	-	30.8	54.9
	Taxation	-	(9.8)	(15.7)
	Profit for the period from discontinued operations	-	21.0	39.2
	Profit on disposal of Gibson Energy:
	Profit on disposal before tax	9.6	-	258.8
	Taxation	(8.0)	-	9.3
	Profit on disposal after tax	1.6	-	268.1
	Total profit from discontinued operations	1.6	21.0	307.3

Under the terms of the sale of Gibson Energy, the consideration payable by the purchaser was subject to the preparation and agreement of completion accounts. These have been agreed in 2009 and result in an additional cash consideration payable by the purchaser of £17.6m, which was received on 20 April 2009.

Provisions held in respect of the Gibson Energy disposal have been reassessed and result in additional provisions for tax indemnities, warranties and corporation tax of £16.0m. These offset the additional consideration received and result in an additional profit on disposal after tax of £1.6m.

  Notes (continued)

6.	EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to Ordinary shareholders by the weighted average number of Ordinary shares outstanding during the period.

For diluted earnings per share, the weighted average number of outstanding Ordinary shares is adjusted to assume conversion of all dilutive potential Ordinary shares. The dilution in respect of share options applies where the exercise price is less than the average market price of the Company's Ordinary shares during the period and the possible issue of shares under the Group's long term incentive plans.

Reconciliations of the earnings and weighted average number of Ordinary shares used in the calculations are set out below:

			Restated	Restated
		Six months	Six months	Year
		ended	ended	ended
		30 June	30 June	31 December
		2009	2008	2008
		£m	£m	£m
	Basic and diluted earnings attributable to Ordinary shareholders:
	From continuing operations	16.0	12.6	(3.1)
	From discontinued operations	1.6	21.0	307.3
	Total	17.6	33.6	304.2
		millions	millions	millions
	Basic weighted average number of Ordinary shares	131.0	130.8	130.9
	Dilutive outstanding share options	2.2	4.2	3.7
	Long term incentive plans	0.5	0.1	0.5
	Adjusted weighted average number of Ordinary shares	133.7	135.1	135.1
		pence	pence	pence
	Basic EPS:
	From continuing operations	12.3	9.7	(2.4)
	From discontinued operations	1.2	16.1	234.8
		13.5	25.8	232.4
		pence	pence	pence
	Diluted EPS:
	From continuing operations	12.0	9.3	(2.4)
	From discontinued operations	1.2	15.6	234.8
		13.2	24.9	232.4
		pence	pence	pence
	EPS adjusted for exceptional items:
	Basic EPS from continuing operations	12.3	9.7	(2.4)
	Add: exceptional items after taxation	-	-	30.0
	Basic EPS from continuing operations before exceptional items	12.3	9.7	27.6
	Diluted EPS from continuing operations	12.0	9.3	(2.4)
	Add: exceptional items after taxation	-	-	29.2
	Diluted EPS from continuing operations before exceptional items	12.0	9.3	26.8

  Notes (continued)

7.	PROPERTY, PLANT AND EQUIPMENT

The Group acquired new property, plant and equipment of £11.0m in the six months ended 30 June 2009. Hunting Energy Services spent £2.5m on new facilities and £2.7m on new machinery and tools.

The balance of £5.8m was for replacement capital, including £0.3m by the Exploration and Production division.

Equipment with a carrying value of £2.5m was disposed of during the period.

The Group also acquired property, plant and equipment with a fair value of £5.2m when it acquired NCC on 12 June 2009 (see note 12).

8.	PROVISIONS

A reassessment of provisions held for tax indemnities and warranties in respect of the Gibson Energy disposal has resulted in additional provisions of £8.0m being made. During the period, £4.1m of provisions held at the start of the period in respect of Gibson Energy were utilised. Other provision movements are set out in note 3.

9.

DIVIDENDS

		Six months	Six months
		ended	ended	Year ended
		30 June	30 June	31 December
		2009	2008	2008
		£m	£m	£m
	Ordinary dividends:
	2008 final - 7.0p	9.2	-	-
	2008 interim - 2.9p	-	-	3.8
	2007 final - 5.7p	-	7.5	7.5
		9.2	7.5	11.3

A 2009 interim dividend of 3.5p per share, which will absorb an estimated £4.6m, was approved by the Board for payment on 20 November 2009.

10.	CHANGES IN NET CASH

				Acquisitions
				(excluding
				cash, cash
		At		equivalents		At
		1 January		and	Exchange	30 June
		2009	Cash flow	overdrafts)	movements	2009
		£m	£m	£m	£m	£m
	Cash and cash equivalents	421.4	(2.6)	-	(4.5)	414.3
	Bank overdrafts	(49.0)	22.8	-	0.5	(25.7)
		372.4	20.2	-	(4.0)	388.6
	Finance leases	(0.1)	0.3	(1.3)	0.1	(1.0)
	Net cash	372.3	20.5	(1.3)	(3.9)	387.6

  Notes (continued)

11.	ASSETS HELD FOR SALE

The Group classified the assets and liabilities of Gibson Energy as held for sale on 30 June 2008 following the commencement of an active programme to locate a buyer. The fair value of the net assets held for sale at 30 June 2008 was as follows:

		Six months
		ended		Restated
		30 June		Six months
		2008	Change in	ended
		(as previously	accounting	30 June
		reported)	policy	2008
		£m	£m	£m
	Assets classified as held for sale
	Property, plant and equipment	213.5	(65.3)	148.2
	Other assets	339.6	-	339.6
		553.1	(65.3)	487.8
	Liabilities classified as held for sale
	Deferred tax liabilities	73.0	(15.7)	57.3
	Other liabilities	206.2	-	206.2
		279.2	(15.7)	263.5

12.	ACQUISITIONS

The Group acquired 100% of the share capital of National Coupling Company Inc. ('NCC'), a leading supplier of proprietary couplings, valves and chemical injection systems for deep water applications, for a gross consideration of £32.6m on 12 June 2009. This business has been classified as part of the Well Intervention segment.

Details of the acquired net assets, goodwill and consideration are set out below:

		Pre-acquisition		Provisional
		carrying values		fair values
		£m		£m
	Property, plant and equipment	4.5		5.2
	Other intangible assets	-		3.2
	Trade and other receivables	3.0		3.0
	Deferred tax assets	-		0.4
	Inventories	2.6		2.6
	Trade and other payables	(1.1)		(1.1)
	Borrowings	(1.3)		(1.3)
	Net identifiable assets acquired	7.7		12.0
	Goodwill			20.6
	Consideration			32.6

The goodwill of £20.6m arising from the acquisition is attributable to future synergies and business opportunities arising from the integration of the business into the Group.

The consideration for the acquisition comprised £31.6m cash, £0.5m costs directly related to the acquisition and £0.5m deferred cash.

The fair values of the net assets acquired are provisional given the short period of time since the acquisition. Work is continuing in respect of the fair value exercise.

  Notes (continued)

12.	ACQUISITIONS (continued)
	Post-acquisition performance
	NCC contributed the following to the Group's performance for the period from acquisition to 30 June 2009:

		£m
	Revenue	0.8
	Profit from operations	0.1
	Profit before tax	0.1

If the acquisition had been made on 1 January 2009, NCC would have contributed the following to the Group's performance for the six months ended 30 June 2009:

		£m
	Revenue	8.7
	Profit from operations	0.8
	Profit before tax	1.3

13.	CAPITAL COMMITMENTS
	Group capital expenditure committed to the purchase of property, plant and equipment, but not provided for in these financial statements amounted to £5.7m (at 30 June 2008 - £11.0m; at 31 December 2008 - £4.2m).

14.	RELATED PARTY TRANSACTIONS
	Non-wholly owned subsidiaries
	During the period, interest bearing loans from non-wholly owned subsidiaries increased by £11.8m. The terms of the loans have not changed since the year end.

15.	POST BALANCE SHEET EVENTS
	The Group acquired 100% of the share capital of PT SMB Industri ('PT SMB'), a premium threading facility in Batam, Indonesia, for a gross consideration of £6.4m on 31 July 2009.
	The provisional fair value of the net assets acquired is £3.8m giving rise to goodwill of £2.6m. Goodwill principally represents the fair value of synergies that are expected to arise as a result of the acquisition.
	The acquisition of PT SMB completed on 31 July 2009 and, given the short period of time since the acquisition, the fair value allocation has yet to be finalised.
	This business will be classified as part of the Well Completion segment.

 

END

 

 

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