Kentz reports strong first-half results

KENTZ Corporation, the global engineering and services group which employs 10,000 people internationally, has delivered strong first-half results.

The Clonmel-based group reported profits before tax rose 36% in the six months ending June 30, 2010 to $25.2 million (€19.8m).

Turnover rose 32% to $434.3m (€240m) and the trend of solid growth is set to continue. Its work pipeline also continues to grow as demand from its customer base remains strong.

As a result, the backlog of orders has grown from $1.1bn at the end of last year to $1.6bn currently.

In its statement, Kentz said it is also working on proposals for key projects valued at more than $3.6bn.

The company has operations in the Middle East, Africa, Australasia, Europe, the Caribbean, the Arctic and beyond.

Commenting yesterday Hugh O’Donnell, chief executive, said one of the company’s strengths is its ability to offer a “one-stop shop” to its range of clients.

Those services cover engineering, procurement and construction, involving back-up services across all of those areas including basic infrastructure. Kentz also engineers products for their clients in the controls and automation areas.

Kentz does a lot of the back-up work that allows clients “to unlock their resources,” Mr O’Donnell said. In effect “we offer a lot of services to our clients on a plate,” he added.

Financially the group is well-placed with €200m cash-flow to hand, more than adequate for its ongoing needs, he said.

“Being in the right place at the right time and with the right attitude,” has been significant in achieving the current run of growth by the group,” he said. The rate hiring which has grown from 7,000 employees to 10,000 has levelled off.

The reason is the group’s involvement in more added-value projects with brain power replacing muscle power in a growing number of projects being signed by the group.

The group has had a policy of “growing organically” and since it listed on London’s AIM in 2008 it has continued to grow year-on-year.

“Our strategy of focussing on core clients and our strong track record of delivery of projects in remote locations have served us well. “The backlog continues to strengthen and it is pleasing to report a substantial growth in orders in Australasia where we see continued project growth,” Mr O’Donnell said.


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