Trading Update

 

TIDMBNLN 
 
RNS Number : 5179Z 
Bateman Litwin N.V. 
23 September 2009 
 

Bateman Litwin N.V. ("Bateman Litwin" or the "Group") 
 
 
Trading update and Possible Disposal of Assets 
23 September 2009 
 
 
Trading Update 
For the year ended 30 June 2009, Group revenue is expected to be circa US$760 
million. The backlog as of 30 June 2009 was approximately US$735 million. This 
has since reduced mainly due to ongoing project execution, but also as a result 
of a suspended contract. Thus as of 31 August 2009 the Group's backlog was 
approximately US$570 million. 
 
 
The Board previously stated, with the publication of the Group's half year 
results on 31 March 2009 that it was targeting a reported EBITDA 
(including exceptional items) at the breakeven level for the year ended 30 June 
2009. The Board can confirm that it expects a reported EBITDA margin (including 
exceptional items) of between zero and minus one per cent for the full year. 
 
 
This reflects an improvement in the second half performance of the financial 
year (1H 2008/09: reported EBITDA loss of US$10.2 million). The progress is a 
result of cost cutting and better project execution. Furthermore, Delta-T has 
effectively completed all legacy projects. The Group has now delivered six 
consecutive months of positive EBITDA (including exceptional items), although 
the Board is not satisfied with the Group's overall level of financial 
performance. 
 
 
Exceptional charges for the year ending 30 June 2009 are likely to be in the 
region of US$50 million before tax (1H 2008/09: US$34.5 million; FY 2007/08: 
US$88.2 million). Of these charges approximately US$25 million relates to 
operating exceptional charges (1H 2008/09: US$13.6 million; FY 2007/08: US$68.8 
million) while the remaining US$25 million relates to non cash hedging and 
goodwill impairment charges (1H 2008/09: US$20.9 million; FY 2007/08: US$19.4 
million). 
 
 
While progress has been made on the major oil and gas legacy project in the 
Former Soviet Union, there is as yet no definitive agreement with the client 
over legacy and forecast cost overruns.  Negotiations are continuing, 
although until successfully concluded, this matter presents an ongoing and 
significant risk to the Group's cash and overall financial position. 
 
 
As of 30 June 2009 the Group had free cash (after restricted cash) of circa 
US$32 million (FY 2007/08: US$69.8 million), however, the Group's gross debt 
position increased to approximately US$89 million (FY 2007/08: US$46.7 
million). Our banks remain generally supportive as evidenced by the Group 
successfully gaining waivers for loan covenants that were in breach. The Group's 
cash position is a critical focus for Management and the Board. 
 
 
In this regard, a loan has been provided by Bateman Engineering N.V. a 
subsidiary of BSG Resources Ltd, the Group's major shareholder. The loan is for 
US$5 million over a three-month period and relates to one of the potential sales 
as described under Possible Disposal of Assets below. Bateman Litwin's 
directors, with the exception of Peter Blauw and David Granot, who are involved 
in the transaction as a related party, consider, having consulted with its 
nominated adviser, that the terms of the transaction are fair and reasonable 
insofar as its shareholders are concerned. Any sale transaction, if concluded, 
would be a related party transaction under AIM rules and would also be subject 
to a fairness opinion. In addition, the Group is in final negotiations to secure 
further short-term financing. 
 
 
While Management and the Board remain focused on managing near term liquidity, 
the new business pipeline is showing an increase in enquiries and interest.  The 
Group has seen a notable increase in the award of smaller feasibility and 
engineering studies, which Management and the Board believe is a sign of 
firming activity. 
 
Possible Disposal of Assets 
The Group is reviewing potential disposals of one or more parts of the business. 
To this extent, the Board has received several indicative proposals for various 
units of the business. Discussions are ongoing with a number of parties but 
there can be no guarantee that any divestment will result. 
 
 
Enquiries: 
+---------------------------------------------+---------------------------+ 
| Bateman Litwin                              | Tel: + 44 (0)20 7799 8307 | 
| David Lamont, Chief Executive Officer       |                           | 
| Davis Larssen, Chief Financial Officer      |                           | 
| Ingrid Boon, Investor Relations Manager     |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
| Credit Suisse Securities (Europe) Limited   |  Tel: [phone] | 
| Nominated adviser and joint broker          |                           | 
| Jon Grussing                                |                           | 
| Will MacLaren                               |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
| Oriel Securities Limited                    |  Tel: [phone] | 
| Joint broker                                |                           | 
| Richard Crawley                             |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
About Bateman Litwin N.V. 
Bateman Litwin is a supplier of technology, engineering, procurement and project 
management services to the world's energy and resource industries. To find out 
more, visit Bateman Litwin at: www.bateman-litwin.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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