15 March 2011- final results

Energy consultancy group KBC has announced its annual results for 2010 which have in pretty much as expected.  Revenues were 1% higher at £53.1m although unfavourable exchange rate movements led to the underlying pre-tax profit falling to £4.9m (2009: £5.7m).  Earnings per share on the same basis were 5.6p (2009: 6.8p) and the total dividend was raised to 1.85p (2009: 1.55p).  Net cash balances at the year end were £4.5m (2009: £4.0m).

Although last year was challenging with unfavourable exchange rates leading to higher costs, the group enjoyed a better second half and the order book has picked up strongly to a record £58.7m at the year end.  Further contract awards in Canada and India have been won in the current year and a reduction in costs and expected higher revenues point to a positive outcome for the year.  We retain our recommendation of BUY.