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A mixed top line is evident from the latest trading update from oil and petrochemical software and consultancy provider KBC Technologies and lack of detail makes it’s hard to discern what is going on underneath but the impression is that it is still struggling to build momentum within the business.
The pre-close statement for the half-year ending 30 June talks of new business, renewed contracts, and higher utilization rates, with good demand for services from Europe and the former Soviet Union. Nevertheless at approximately £23.5m, H1 contract awards were only marginally up from the year ago position of £23.1m and the order book is down - expected to come in at around £56m compared to £58.7m. An arbitration process entered into following a (refuted) allegation from a competitor that KBC infringed copyright should be settled soon, with the arbitrator's award expected within the next month, but this is still adding uncertainty to KBC’s prospects.
There was a lot that was not addressed such as whether trouble in the middle east is still impacting the EMEA business (see KBC slips on Middle East oil turmoil) and whether the software operation, which is important for the direct revenues it brings in as well as feeding the consultancy operation, has started to climb or not (see Software sales fall at KBC).
The results, due to be released in mid September, will make interesting reading and provide a better picture of how KBC is faring.
