10 February 2011 – trading update

A trading update has been released to coincide with the company’s AGM. First quarter trading was in line with expectations following an anticipated slow start to the year due to a lack of orders for the deepwater rig market. A stronger performance is expected in the second half to offset this. The company has said that it will have a clearer view on the likely full year result by mid April. A further trading update will be provided at that time. The company remains confident of a return to organic growth in the medium term. It also aims to develop further with niche acquisitions and this could drive further value into the business. We retain our BUY recommendation.