KBC Advanced Tech (LSE:KBC) - disappointing statement but reaction looks over the top
Shares in KBC Advanced Technologies, the AIM quoted consultants to the oil refining, petrochemical and process industries, got thumped today after coming out with a disappointing, trading update.
The group confirmed how capital projects in the oil refining industry were being reconsidered or scaled back which has slowed down the award of anticipated contracts. Revenue for the first four months of this year is still running ahead of 2008 but the group’s higher cost base and unfavourable changes in the Euro/Sterling exchange rate, has reduced profitability. The shares ultimately fell 29% to 32p with approx 276,000 shares changing hands. Today’s announcement was also somewhat surprising following two Directors purchase of an aggregate 35,000 shares back in April at prices up to 40p. In response to the disappointing announcement…