AGM Statement

RNS Number : 8081W

Velosi Limited

17 June 2008

 



Velosi Limited ('Velosi' or 'the Group')

AGM STATEMENT BY THE CHAIRMAN

John Hogan, Chairman of Velosi, the provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, will make the following statement at the Company's Annual General Meeting being held today at 11.00am:

'2007 was a year of expansion for the Group and revenue growth was experienced across all areas of the globe. Group revenue increased 67% and profit before tax was up 43% on 2006. We continued to pursue our strategy as outlined at the time of our IPO in August 2006 - increasing our market share in existing markets, entering new geographic regions and expanding our service offerings.

'The acquisitions of Steel Test (PTY) Ltd ('Steel Test') and Plant Design Engineers Sdn Bhd ('Plant Design Engineer'), which were announced at the end of 2006, were completed in March 2007. We also made a further two acquisitions during the year - K2 Specialist Services Pte Ltd ('K2'), an inspection, testing and engineering support services company, based in Asia, and Intec UK Limited ('Intec'), a UK-based company that provides contract and permanent personnel. Both these acquisitions were immediately earnings enhancing and strengthened the Group's service offerings.

'Our service offerings were also enhanced in the latter half of 2007 with the introduction of our new Asset Integrity Management Services Division. The success of this new division was apparent at a very early stage of its incorporation, with notable contracts already secured by the year end, in the Emirates and Indonesia, totalling more than US$5.7 million.

'During 2007, seven new offices were established and these, combined with our acquisitions of Steel Test, Plant Design Engineers, K2 and Intec, have continued to broaden the Group's geographical reach.

'A significant number of contracts were won globally during 2007, both with existing and new major oil and gas clients. I am pleased to report that this trend has continued into 2008 as we continue to strengthen our market position and invest in new ways to make our service more cost effective. 

'Our new Asset Integrity Management Services Division is continuing to perform well and clearly demonstrates our clients confidence in our high-end service capabilities and performance. In the current environment of rising oil prices and high levels of oil and gas activity and investment, we continue to experience strong demand for our core services. We are also looking to diversify into other areas such as nuclear power and mining industries, in order to ensure continued longer term growth, in tandem with broadening our technical competence in related areas such as engineering design and sub sea services.

'The Group has had a good start to 2008 and is currently trading in line with market expectations. Demand for our services continues to grow, and there is no sign of a slowdown. This, combined with our ever expanding global network, means the Board remains confident that Velosi will continue to grow and generate excellent returns for shareholders during the remainder of 2008 and beyond'. 

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 For further information, please contact:

Velosi	Dr Nabil Abdul Jalil Joe Vincent	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 Emma Consett	020 7930 0777

 

END

 

 

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