The AIM quoted niche engineering group for the energy sector announced the audited accounts of its subsidiary sending the share price soaring over 40%! SEGR was formed through the reverse takeover of Southbank UK PLC (CISX listed) and Nviro Cleantech PLC. Currently the Group’s main operating subsidiary is Hayward Tyler Group Limited worldwide market leaders in boiler circulating pumps, with a focus on the energy sector. This sector covers a wide range of potential activities including conventional fossil fired power generation, nuclear power generation, oil and gas exploration and renewables.
The accounts of Southbank for the year ending 31st December 2009 showed revenues up 11% to £36.8m with gross profit up 117% to £10.8m. Operating profit (as adjusted for non-recurring items) was up £4.5m to £2.3m (2008: loss £2.2m). With the order book standing at £30.1m it all looks very promising! CEO Ewan Lloyd-Baker, commented that they are “delighted by Southbank’s strong performance in 2009 - particularly when set against the backdrop of some of the most challenging trading and financial conditions in living memory. Focusing on key growth markets and provision of essential equipment to the power markets will allow the business to continue to grow.”
The year has seen some great achievements for this company including the securing orders for 18 boiler circulating pumps for export to India at around a total value of £5m, delivering high integrity gate valves for Thames Water’s London ring water main and winning ‘Exporter of the Year 2009’ from the Sino-Anglo business network, ‘48 Group Club’ for exports to China. Net debt at 31 December 2009 was £13.7 million (2008: £12.4 million), which includes term borrowings of £10.4 million (2008: £10.5 million). The Board’s strategy continues to be to look for ways to monetise on original technologies (including Vertus and Microrelease) in as timely and profitable a manner as possible. The house broker is forecasting underlying net profit of £1.9m for the year ending December 2010 and earnings per share of 7.6p.
