First-half results from process-engineering consultant KBC Advanced Technologies showed that capital spending on refineries is holding up surprisingly well. In theory, the collapse in global demand should have seen refinery projects shelved, with KBC hoping for operational consulting to fill the gap - to date the latter has been sluggish, but management now sees evidence of growth.
IC TIP:
Hold
at
44p
Earnings per share of 1.6p compare with 3.3p a year earlier and full-year earnings of 6.4p for 2008. The interim dividend was boosted from 0.35p to 0.45p (ex-div 16 September, paid 7 October), although an equivalent boost in the final dividend seems unlikely, as KBC is rebalancing between the two payouts.
What we said: Buy
When: 24/07/09
Price: 34p
