VELO Velosi

 

TIDMVELO 
 
RNS Number : 0225N 
Velosi Limited 
10 February 2009 
 

 
 
 
 
 
 
 
 
10 February 2009 
 
 
 
 
Velosi Limited 
 
 
Trading statement 
 
 
Velosi Limited ("Velosi" or the "Group"), the AIM listed provider of asset 
integrity and HSE services to a number of major national and multinational oil 
and gas companies, is pleased to announce that trading was in line with market 
expectations for the 12 months ended 31 December 2008. 
 
 
During 2008 the Company continued to benefit from its investment and 
acquisitions in new regions and markets, reflected in the winning of a wide 
range of significant new contracts with major oil and gas corporations. 
Investment in new projects together with the need for the ongoing maintenance of 
long-term infrastructure projects has underpinned this revenue growth. Velosi 
opened new offices in Angola, Ghana, Vietnam, the Netherlands, and Russia and 
also expanded its diverse range of services focusing in particular on Asset 
Integrity Management Services. Demand for asset integrity services has been 
strong, driven by Velosi's reputation for being able to deliver cost effective 
solutions on a global basis. 
 
 
During 2008 Velosi won its first contract in Norway, providing Quality Assurance 
and Control for BP, and won new contracts in Saudi Arabia, Italy and Qatar. 
Towards the end of 2008, the Chevron contract in Angola commenced and will be a 
strong contributor to Group revenues going forward. 
 
 
In October 2008, through acquiring a 60% stake in PSC Europe SRL, Velosi 
expanded its presence in Italy's rapidly growing natural gas market providing 
expediting and inspection services. Closely following the acquisition, a new 
substantial Italian contract was won with Saipem, a subsidiary of ENI. In 
addition, integration of previous acquisitions, K2 and Intec, generated a number 
of valuable synergies and cross-referrals during 2008. 
 
 
In the current year our strong order book provides good visibility on future 
revenues and as such, the Group is trading in line with market expectations. 
However with the deterioration in global market conditions and the price of oil, 
we expect to see our customers come under increasing pressure to reduce costs. 
In the longer term we believe we can offset the expected slowdown through 
increased market penetration and diversification of services, and while we 
believe the business continues to be well placed for growth in 2009, longer term 
we remain cautious in light of the continued global market uncertainty. 
 
 
Cash generation in 2008 was strong and continues to improve into 2009. The Group 
is closely focused on ensuring the business operates on a streamlined cost base 
whilst ensuring that it does not forego commercial opportunities. 
 
 
Dr Nabil Abdul Jalil, CEO, commented: "2008 was a good year for the business, as 
a result while we are now entering a more challenging period we are in a strong 
position. Our current order book together with the knowledge of other contracts 
we are working on gives us the confidence to be relatively positive for 2009. We 
are also continuing to see opportunities to expand into new markets both 
organically and through acquisition, however, given the broader market 
environment we are adopting a more cautious approach to expansion." 
 
 
Velosi will report its results for the 12 months to 31 December 2008 on 20 April 
2009. 
 
 
- End - 
 
 
 
 
For further information, please contact: 
 
 
+------------------+--------------------+------------------------------+ 
| Velosi           | Dr Nabil Abdul     | 020 7930 0777                | 
|                  | Jalil              |                              | 
|                  | Dan Ooi            |                              | 
+------------------+--------------------+------------------------------+ 
| Strand Partners  | James Harris       | 020 7409 3494                | 
|                  |                    |                              | 
+------------------+--------------------+------------------------------+ 
| Charles Stanley  | Mark Taylor        | 020 7149 6000                | 
| Securities       | Freddy Crossley    |                              | 
+------------------+--------------------+------------------------------+ 
| Cardew Group     | Tim Robertson      | 020 7930 0777                | 
|                  | Shan Shan          |                              | 
|                  | Willenbrock        |                              | 
|                  | Catherine Maitland |                              | 
+------------------+--------------------+------------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTUKRVRKARURAR 
 

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