Investor's Champion
How to make your money go further

Kentz Corporation – good news on the numbers but shares now look expensive compared to others

30/08/2011 · Kentz Corporation (KENZ) 
The engineering group announced first half revenue up 48.2% to US$643.5m, profit before tax up 49.8% to US$37.7m and diluted earnings per share of 26.05 US cents (2010: 14.72 US cents). The backlog has moved higher, it was just a pity that cash flow disappointed and thre are good bargains to be had elsewhere.
Gross margins were marginally lower, 12.23% vs 12.39% in the comparable period, but operating margins marginally higher at 4.829% - the slim margins on offer highlight the perils of this type of contracting business! The backlog of US$1,569.9m at the end of June 2011 has already further strengthened at the end of July to US$2,391.1m. The geographical revenue mix changed with Southern Africa the major contributor with US$259.4m up 214% compared with the comparable period. 49.6% of revenues in the first half came from end user international and national oil companies including Shell, ExxonMobil, Chevron, Saudi Aramco, Kuwait Oil Company,…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login