Malaga-based scaffolding and form-work supplier PCH Group Ltd anticipates a weak first half profit result, coming after a series of delays between major projects and expansion costs, it informed the market today.
The company also announced it had secured a two-year contract extension for work at a Thai oil and gas facility.
The full text of a company announcement is pasted below
PCH Group Limited is pleased to announce that it has received a Letter of Intent for a two year contract extension at a major oil and gas fabrication facility in Thailand.
Under the contract, which was originally secured in 2001, PCH provides scaffolding and related management services across the site, where increasing levels of oil and gas fabrication work is being carried out on an ongoing basis.
Commenting today, Mr Bill Ryan, the Chairman of PCH said:
"The extension of this contract, as well as three other contracts we have just secured in Indonesia and Qatar and the five contracts announced late last year in Qatar, Thailand, Singapore and Oman, is further evidence of the growing strength and reputation of PCH in international markets."
"We have previously flagged that the 2007 financial year will be a year of transition as a consequence of time lags between major projects finishing and new projects starting up; some project delays; the costs of expanding into new markets and mobilisation costs. This will be reflected in a weak first half result to be announced on 28 February 2007 and also in the result for the full year. The board is confident, however, that our competitive position in existing and new markets and the new major projects coming on stream in local and overseas markets has positioned PCH for substantial and consistent growth in earnings over the medium to longer term."
