KENTZ FLOATS ON LONDON AIM TODAY -Operating in Ireland since 1919 and internationally since the 1970s, engineering firm Kentz is to float on London's Alternative Investment Market today. Its client list boasts the biggest world names in gas and oil, and its flotation is set to be one of the biggest of the year in London, starting to trade with a market cap of $264m. The firm is now incorporated in Jersey and is owned by its management and Malaysian investors Peremba, which has held a majority stake in Kentz since it recapitalised in 1994. The firm has over 7,000 staff in more than 20 countries.
Hugh O'Donnell, the firm's chief executive, is on Sakhalin Island in the Pacific Ocean, just above Japan. Sakhalin has been in the news for the last few days, because it is where the Danish ship which has been taken over by pirates was en route to. Mr O'Donnell says that being captured by pirates is a real concern for companies operating in these Pacific seas who are trying to move their kit around. He says that, fortunately, none of Kentz workers have ever been hijacked or kidnapped despite working in some of the remotest corners of the world. He says the company does have contingency plans if something does ever go wrong.
The Kentz CEO says the firm is listing today because despite world markets being in turmoil, oil and gas markets are at an all time high. World energy demand continues to outstrip supply and that capacity gap is growing, he says. Mr O'Donnell says that the company's clients are spending large capital projects in every remote place on earth in an effort to expand their reserves, and Kentz finds itself in a very exciting market.
He says the company has seen 'phenomenal' growth in the last three to four years and wants to continue that growth and grow with its clients. The AIM listing gives the company a platform for future growth and get access to capital and shareholders who have the same vision as the company, Mr O'Donnell says.
The Kentz boss says the company also considered a listing on Dublin's IEX market, but said it focused on AIM because of its specific oil and gas services sector.
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MORNING BRIEFS - Reinforcing worries about the construction market, Readymix issued a profits warning this morning. It says that although year end results have not yet been finalised, it is already clear that its operating profit for 2007 will be substantially below market expectations and what the firm achieved in 2006. Readymix will issue another statement within two weeks.
*** In a trading statement today, DCC says the adverse impact of the current sterling / euro exchange rate on the translation of DCC's sterling profits into euro will reduce its rate of growth for the full year to the tune of €3m. However, DCC says it had an excellent year, and expects strong growth in operating profit.
*** According to Exchequer figures published by the Department of Finance yesterday, stamp duties collected last month were about half of what they were in January 2007. The figures show that the Government's overall tax take last month was €4.6 billion, slightly below the same month last year. For now the slowdown in stamp duties and capital taxes is being offset by robust growth in income tax receipts.
*** A former Credit Suisse investment banker has been found guilty of insider trading and conspiracy. The 37 year old participated in a $7.5m scheme to leak inside information about pending corporate takeovers. He told a friend in his native Pakistan who then traded on the unlawful tips. He faces at least 25 years in prison and deportation.
*** A report from Rubicon Investment consulting says the average Irish pension fund fell by 6.7% in January, after an average drop of 2.6% last year. Taken over 12 months this decline is just over 10%.
*** On the currency markets, the euro is trading at $1.4810 and 77.1 pence sterling.
