Kentech returns to profit

INTERNATIONAL ENGINEERING group Kentech last year returned to profit after revenues increased by 17 per cent to $137 million (€102.8 million).

Accounts for Cork-based Kentech Group – which employs more than 3,200 people – show the group recorded a pre-tax profit last year of $8.2 million to the end of December last after recording a pre-tax loss of $6.5 million in 2008.

The Kentech Group operates for the oil, gas and petrochemical industries in Russia, Azerbaijan, Mexico, the United Arab Emirates (UAE), Qatar, Kuwait and Kazakhstan.

The returns show that the company’s revenues increased by $20.7 million last year to $137.1 million with the group’s costs of sales increasing by 12 per cent to $110.5 million.

According to the directors’ report for Josar Holdings Ltd, they state that they “are pleased to see the group returning to a modest profitable position after a difficult couple of years, especially in the light of the continuing global recession throughout the year.

“Investments made in the Middle East in previous years are now bearing fruit as the strategic targets set for the region are being consistently met or exceeded and the group cements its position as one of the region’s leading suppliers of the group’s specialist services.

“Strong sales are reported in both UAE and Qatar in particular.”

The directors add: “Operations in the former Soviet Union continue at steady levels when compared to the previous year and provide the group with a stable, profitable platform in these challenging environments.”

The returns show that the numbers employed by the group last year increased by 9 per cent from 2,977 to 3,261 with staff costs declining by 13 per cent from $67.2 million to $58.3 million.