Kentz reports strong pipeline of extra business in place

KENTZ Corporation, the Irish engineering company, said its backlog of work rose 39% in the first four months of the year, with a “very strong” pipeline of additional business in place.

The backlog increased to $827 million (€534m) at the end of April from $596.4m at the end of 2007, the company said yesterday in a market update.

Kentz share price rose 5.5 pence, or 3.2% to 180 pence in early trading.

The group confirmed it won orders worth $208m in a contract to supply electrical systems for a teaching hospital in Qatar.

“The group has a very strong pipeline of additional prospects which we expect to convert to backlog during 2008,” it said.

Kentz origins go back to Clonmel, Co Tipperary where it was founded in 1919.

It launched on London’s AIM in early February at a price of £1.15 per share which valued the group at £150m (€189.3m). The current share price of 180p increased the market value to over £200m.

In 2007 it reported turnover and profits rose significantly. It boosted profit before tax by 36.9%, to $34.3m, from $25.1m in 2006 while sales increased 47.2%.

The strongest growth came form the Middle East, with significant capital investments in upstream and downstream projects.

Kentz works with most of the major oil companies in the region. The group announced it expected to complete a major acquisition this year at a cost of up to $100m as it aims to move the group up the supply chain in the oil sector.

The original MF Kent went into administration in the early 1990s. It was bought out of administration 13 years ago and has enjoyed good growth since.

It employs more than 7,000 people on a full-time basis, located in diverse locations including Saudi Arabia, Indonesia, Kuwait, South Africa and the US.

Its two leading executives hold 10% equity stakes in the business with the rest mainly in the hands of Malaysian investors.