Trading Statement (9326B)
28 Februar 2011 - 8:02AM
UK Regulatory
TIDMOHM
RNS Number : 9326B
Offshore Hydrocarbon Mapping PLC
28 February 2011
28 February 2011
Offshore Hydrocarbon Mapping plc (the "Company" or the
"Group")
Trading Update
Offshore Hydrocarbon Mapping plc (AIM: OHM) is pleased to
provide the following trading update to coincide with the six
months ended 28 February 2011 and the Company's Annual General
Meeting to be held at 11.00am this morning.
Shareholders will be asked at today's AGM to approve a change of
name from Offshore Hydrocarbon Mapping plc to Rock Solid Images
plc. This renaming of the Company and rebranding to "RSI" is
expected to help remove market confusion about what we do and
clearly define the Company going forward.
Financial update:
The Group's half year ended on 28 February 2011 and during the
period the Group disposed of the marine CSEM acquisition business
on 2 November 2010.
The disposed of business made aggregate losses before tax of
approximately GBP1.45 million in the two month period before the
disposal. These losses will be treated as discontinued operations
in the consolidated accounts to 31 August 2011 and were allowed for
in the impairment provisions made by the Directors in the
consolidated accounts to 31 August 2010. The following financial
analysis therefore excludes the impact of the disposed business in
the current and comparative periods.
Revenues for each of its operating divisions in the six months
to 28 February 2011 are expected to be as follows:
-- Seismic characterisation revenues are expected to be
approximately GBP1.3 million (six months to 28 February 2010:
GBP1.3 million) and are in-line with our budget for the first six
months.
-- The WISE seismic/CSEM integrated product line will achieve
revenues of approximately GBP0.5 million (six months to 28 February
2010: GBP0.4 million).
In aggregate, the Group's revenues are expected to be
approximately GBP1.8 million for the six months to 28 February 2011
compared to GBP1.7 million (as adjusted for discontinued
operations) for the six months to 28 February 2010.
The Group continues to carry a corporate overhead, which is
currently disproportionately high compared to the contribution from
its trading activities, which the Directors estimate will result in
a pre-tax loss in the GBP1.2 to GBP1.5 million range being reported
for the six months to 28 February 2011. This compares with a GBP1.2
million pre-tax loss (as adjusted for discontinued operations) for
the same period last year. Though fixed costs remain
disproportionately high, we are in a growth phase and are confident
of our ability to manage these expenses over time.
The Group's cash balance at 28 February 2011 was GBP1.7 million,
compared to GBP3.4 million at 31 August 2010.
The results for the six months to 28 February 2011 are
anticipated to be published on 19 April 2011.
Current trading and prospects:
Since 4 February 2011, when the Company reported its results for
the 12 months ending 31 August 2010, it has continued to move
forward with developing its business.
Following the divestment of the marine acquisition group in
November of 2010, management has been free to concentrate fully on
developing our consulting business, and we have made substantial
progress in a number of areas.
It is convenient to divide our market into the traditional
"wells and seismic" (WSS) business of the original Rock Solid
Images, and the emerging WISE business which involves the
interpretation and integration of CSEM and/or MT data with
seismic.
We have invested in both business segments through the purchase
of additional software, and the initiation of an important software
development project in partnership with Interaction for building a
new front-end CSEM processing system (announced 27 January 2011).
We have seen some early return on these investments: our new earth
modelling system is up and running and available to our processing
& interpretation group, and has radically improved our ability
to integrate and interpret seismic, CSEM and well data within a
common framework.
Recent appointments into key leadership positions within the
management team have strengthened our Company. We continue to
recruit into several areas of our business, including sales,
processing and R&D.
Revenues have been growing month on month, in line with our
budget. Though fixed costs remain disproportionately high, we are
in a growth phase and are confident of our ability to manage these
expenses over time.
Stated Chief Executive Officer, Richard Cooper:
" We are very pleased with the progress made to date in
transitioning the Company from one focussed on marine acquisition
to one exclusively focussed on high end geophysical consulting. We
have made excellent progress over the last four months, since the
disposal on 2 November, in bedding down and setting the agenda for
the new organisation. This progress, together with the renaming of
the Company to Rock Solid Images means we can look forward to the
second half of the year with considerable optimism and
enthusiasm."
Contacts for further information:
Offshore Hydrocarbon Mapping plc
Richard Cooper - Chief Executive Officer 0870 429 6581
Bob Auckland - Finance Director 0870 429 6581
Peter Reilly - Non Exec Chairman 07881 920542
Peel Hunt LLP (NOMAD and Broker)
Julian Blunt/Simon Brown 020 7418 8900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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