Engineer Kentz is confident of standalone prospects as two bidders disappear in as many days
Engineer Kentz has released an update after German M+W has issued no further takeover proposals for the firm (release). That comes after Amec withdrew interest yesterday.
Since its announcement of 19 August 2013, Kentz can confirm that it received no further proposals from either Amec plc or M+W.
The Company remains confident it can deliver further value to shareholders as a standalone entity given its record order backlog, bidding activity and balance sheet strength.
The board gives some reasons for their confidence:
The pipeline of opportunities continues to grow, up 14% in 1H 2013, illustrating that clients are continuing to invest
Increased bidding activity across all business units and regions, with a record US$4.5 billion of bids submitted in Q2 2013
Kentz continues to win new work as evidenced by the 8% growth in backlog in the first half and 15% growth in the past 18 months
New projects are being converted into revenue, as evidenced by the increasing revenues. Kentz expects to deliver in the region of 12% revenue growth in 2013
Projects are being executed to client satisfaction and Kentz continues to complete profitable contracts and win repeat business
The Company has considerable balance sheet strength to allow it to further grow both organically and by selective acquisition. In the event Kentz cannot identify suitable targets that deliver shareholder value, the Board will consider a return of capital to shareholders.
Christian Brown, chief executive officer of Kentz said:
I would like to thank shareholders for their support during the offer period. Kentz has grown and evolved into a truly global company, respected by its clients, many of whom are amongst the biggest companies in the world. We have every confidence in the long-term future and significant value of Kentz and its future prospects.