Admission to AIM

RNS Number:8443Z
Plant Offshore Group Ltd
09 July 2007


                              Plant Offshore Group

                                Admission to AIM

Plant Offshore Group Ltd ("Plant Offshore"), a Malaysian Engineering,
Procurement and Construction Management ("EPCM") services company, announces the
commencement today of trading in its ordinary shares on AIM.

As part of the flotation, HB Corporate placed 16,666,667 ordinary shares at 12p
per share raising a total of #2.0m for the Company. At admission, there are
166,666,667 ordinary shares in issue giving a market capitalisation of #20m at
the placing price.

Plant Offshore is the holding company of an established and profitable group of
companies engaged in the business of providing integrated, multi-discipline EPCM
services to the oil and gas (onshore and offshore), petrochemical, biodiesel,
energy and other related industries ("Relevant Industries") predominantly
through its wholly-owned subsidiary, Plant & Offshore Technology Sdn Bhd ("Plant
& Offshore Technology"). The Group operates primarily in the ASEAN region but
this focus is expanding, with the Group having won contracts in the Middle East.
The services of Plant & Offshore Technology are focused on EPCM services. This
is broken down and incorporates the following features:

*    Engineering "E" - specialist engineering design services;
*    Procurement "P" - the procurement of the relevant materials and equipment 
     to meet design specifications such as skid and process equipment; and
*    Construction Management "CM" - the management on a client's behalf of the
     construction or fabrication of a project.

The services can be provided, together with more general Project Management,
either in totality or partially dependent on the client's requirements. In
addition Plant & Offshore Technology supplies industry specialists to the oil
and gas and related industries.

The Group is already making good progress in all of these areas, and has
recently entered into its first full EPCM contract, worth #14.285 million over
18 months. It also has tenders in place for further contracts valued at in
excess of #55 million.

In addition, Plant Offshore has secured a five year collaboration agreement with
OilFab Sdn Bhd, one of only six fabricators appointed by oil-giant Petronas in
Malaysia. This is estimated to be worth around #2 million a year. The key market
drivers in Malaysia are a prevailing high price of crude oil which is
stimulating production; a positive outlook of the oil and gas sector driving
exploration and production activities and sustained economic growth.

Whilst the majority of the Group's business is still in Malaysia, it is also
attracting business further afield. It has recently won contracts in Qatar and
Indonesia, and is supplying specialist contractors to Nigeria, Thailand,
Singapore, People's Republic of China, Korea, Australia and Vietnam.

Hang Chin Juan, Chief Executive Officer, commented: 
"We are very pleased with the support that we have received from investors and 
to list our shares on AIM which provides us with the perfect platform and 
exposure to develop our goals.

"The money raised will allow Plant Offshore to focus on higher value, full EPCM
contracts with involvement from inception through to operation; expand its
geographical reach; intensify its focus on the growing renewable energy market
in South East Asia; and increase recurring revenues through strategic
collaborations with major industry players."

Nominated Adviser and Broker to the float is HB Corporate

Contact details:
Plant Offshore Group                                           + 603 7805 5001
Hang Chin Juan, Chief Executive Officer
Kenneth Chai

HB Corporate                                                     020 7510 8600
Luke Cairns
Jim McGeever

Threadneedle Communications                                      020 7936 9605
Graham Herring
Josh Royston

Notes to Editors

Business

On Admission Plant Offshore Group Ltd will be the holding company of an
established and profitable group of companies engaged in the business of
providing integrated, multi-discipline Engineering, Procurement & Construction
Management ("EPCM") services to the oil and gas (onshore and offshore),
petrochemical, biodiesel, energy and other related industries ("Relevant
Industries") predominantly through its wholly-owned subsidiary, Plant & Offshore
Technology Sdn Bhd ("Plant & Offshore Technology"). The Group operates primarily
in the ASEAN region but this focus is expanding, with the Group having won
contracts in the Middle East.

The services of Plant & Offshore Technology are focused on EPCM services. This
is broken down and incorporates the following features:

*    Engineering "E" - specialist engineering design services;
*    Procurement "P" - the procurement of the relevant materials and equipment 
     to meet design specifications such as skid and process equipment; and
*    Construction Management "CM" - the management on a client's behalf of the
     construction or fabrication of a project.

The services can be provided, together with more general Project Management,
either in totality or partially dependent on the client's requirements. In
addition Plant & Offshore Technology supplies industry specialists to the oil
and gas and related industries.

Ikhtiar Intelek Sdn Bhd ("I-Intelek") provides software technology for the
Group, and as such provides, researches, develops and customises engineering
design software to confluent industries. This engineering design software helps
facilitate Plant & Offshore Technology's provision of EPCM services.

The Group is typically contracted by the owner operators, fabricators or turnkey
contractors of projects in its specified industries to provide some or all of
its EPCM services. The Company does not manufacture, construct, own or operate
its own plant or operation in the described industries, but rather, is involved
in the engineering, design and the procurement of plant and materials which are
then manufactured or constructed by the owner operator of the project or another
sub-contractor. In addition the Group sources the services of specialist
personnel for clients.

Plant & Offshore Technology has operated since 1994 and the Group's key
management and technical staff of over forty engineers and technical personnel
have over 200 years' engineering experience between them.

Strategy

The business model is built around the Group as an integrated, multi-discipline
EPCM service provider to the Relevant Industries. Historically the model has
been built on the Group's expertise and experience in the various aspects of
EPCM and its flexibility to handle the different components of the services as
described above.

More recently the Group has been assisting clients through the entire life cycle
of projects, from tendering through to commissioning. In such cases the Group
may provide the tendering services at cost, on the basis that the bigger fees
will come throughout the life of the project. The tendering process for the
Group is typically 3 to 6 months.

The key strategy of the Group for the next three years can be summarised as
follows:

*    Focus on winning, more, higher value, full EPCM contracts;
*    Seek to increase the level of recurring income through collaborations with
     strategic partners;
*    Increase the Group's geographical reach for its services; and
*    Focus on the growing renewable energy market in the South East Asian 
     market.

The Group is already making good progress in realising its strategic plans,
recently entering into its first of two full EPCM contracts, worth in total
RM145million (#21.29million), and having tenders in place for further EPCM
contracts worth in excess of RM374million (#55million). In addition the Group
has secured a 5 year collaboration agreement with OilFab Sdn Bhd, one of only
six fabricators for Petronas in Malaysia. Whilst the majority of the Group's
contracts are still in Malaysia it has won contracts in Qatar and Indonesia and
supplied specialist contractors to Malaysia, Nigeria, Qatar, Thailand, People's
Republic of China, Korea, Australia and Vietnam.

Key Strengths

The Directors believe the Group has the following key strengths:

*    Strong pipeline of contracts in place representing approximately #22.5
     million (subject to milestone performances) over the next 20 months;
*    Flexible EPCM service offering across multiple industries;
*    Proprietary software allowing greater efficiency and flexibility in the
     execution of engineering designs;
*    MSC status for I-Intelek providing tax free status for this company until 
     2009 with the potential for a extension by another five years to 2014;
*    Strong key management and technical staff with over 200 years' combined
     engineering experience between over forty engineers and technical 
     personnel; and
*    The core business has been established and in operation for over ten years.

Trading History

The consolidated income statement of Plant & Offshore Corporation Sdn Bhd and
its subsidiaries for the financial period ended 31 December ("FPE") 2004
(adjusted), FYE 2005 (adjusted) and 2006 is set out below:

                                         FPE 2004     FYE 2005     Audited -
                                        (Adjusted)   (Adjusted)    FYE 2006
                                         GBP'000      GBP'000      GBP'000

Revenue                                    675          3,956        4,240
Cost of sales                             (571)        (3,272)      (2,935)

Gross profit                               104            684        1,305

Other operating income                      88             52           21
Administrative expenses                    (36)          (280)        (402)
Other operating expenses                    (7)           (45)         (67)

Profit from operations                     149            411          857
Finance costs                               (1)           (11)         (25)

Profit before taxation                     148            400          832
Taxation                                   (27)           (55)        (115)

Profit after taxation                      121            345          717


Note:

The translated consolidated income statement is for illustrative purposes only
and it does fully comply with IAS 21 - The Effects of Changes in Foreign
Exchange Rates. For the Group's historical financial information refer to Parts
III(b) and IV(b) of this document. The financial information has been translated
using the following exchange rates: RM6.81 : #1

The Placing

The Company is issuing 16,666,667 Ordinary Shares at 12p per Share pursuant to
the Placing to raise approximately #2 million before expenses. The Placing will
provide funds for working capital in connection with current and future EPCM
contracts of the Group. In addition, the Placing proceeds will be used for
technology R&D and to pay the costs associated with Admission.

Directors

The Directors of the Company on Admission will be as follows:

Cho Nam Sang, Non-Executive Chairman

Cho Nam Sang, a Malaysian aged 45, holds a Degree in Economics, majoring in
Business Administration from the University of Malaya and a Masters Degree in
Business Administration majoring in Finance from the Multimedia University of
Malaysia. He was appointed to the Board of the Company on 7 May 2007.
After a variety of different roles, he joined JVC Video Manufacturing Malaysia
Sdn Bhd ("JVC") in 1989 as an Assistant Planning Manager. JVC is a leading
manufacturer of digital camcorders and is wholly-owned by Victor Company of
Japan Ltd, a company listed on the Tokyo Stock Exchange. In 1991 he was promoted
to Manager to oversee both the Planning and Logistics Sections. He became a
Deputy Department Manager and subsequently a General Manager in 1992 and 1994
respectively.

In July 2001, he was appointed as an Independent Non-Executive Director of
Oilcorp Berhad ("Oilcorp"), which is an Oil and Gas company listed in the Main
Board of Bursa Malaysia Securities Berhad. He resigned as an Independent
Non-Executive Director of Oilcorp in June 2006 as Oilcorp, via its subsidiary,
became one of the members of Konsortium Perikanan Nasional Berhad ("KPNB"), a
National Fisheries Consortium which he later joined. As of July 2006 he became a
General Manager and Alternate Director of KPNB.

Hang Chin Juan, Chief Executive Officer

Hang Chin Juan, a Malaysian aged 48, is the Chief Executive Officer of the
Group. He holds a Diploma in Mechanical Engineering from the Federal Institute
of Technology, Malaysia and is responsible for the overall strategic direction,
management and business development of the Group.

Following his graduation in 1980 from Federal Institute of Technology, Malaysia
with a Diploma in Mechanical Engineering Mr Hang began his career as a Piping
Junior Designer with Chiyoda Singapore Pty. Ltd. where he worked for 4 years. In
1989 he joined Damit Worley Engineering Sdn Bhd as a Lead Conceptual Piping
Design Engineer where he remained for 6 years. Mr Hang has also worked at Protek
Engineers Sdn Bhd in a variety of piping design posts. Mr Hang joined Plant &
Offshore Technology as an Operations Manager in 1996 and he served in that
position for eight years before being appointed as the Managing Director in
2004.

Mr. Hang has approximately 26 years of experience in the oil and gas and
oleochemical industries. In addition, he has extensive experience in piping and
design systems on both offshore and onshore oil and gas production and
processing facilities.

Pey Chee Hian, Executive Director

Pey Chee Hian, a Malaysian aged 45, is an Executive Director of the Group and
Head of Quality Assurance. He holds a Diploma in Management from the Malaysian
Institute of Management, which he obtained in 1995. He is responsible for the
day-to-day management of the Group's operational activities as well as the
Group's business development activities.

Mr Pey began his career in 1982 at Soutex Sdn Bhd as an Electronic Technician
and later as the Assistant Electronic Department Head before joining Oil Line
Engineering & Associates Sdn Bhd in 1991 as a Project Coordinator, where he
coordinated projects awarded by Sabah Shipyard Sdn Bhd, Penang Shipbuilding
Corporation Sdn Bhd and Sime Engineering Sdn Bhd. Mr Pey joined Plant & Offshore
Technology in 1995 as a Manager, primarily responsible for the recruitment and
placement of local and expatriate technical staff. He was appointed as a
director of Plant & Offshore Technology in 2004.

Mr Pey has more than 20 years of experience in business strategies, planning and
marketing, recruitment of staff and coordination of engineering works in the
mechanical engineering, electrical engineering, civil engineering and oil and
gas industries.

Goh Chin Yong, Non-Executive Director

Goh Chin Yong, a Malaysian aged 46, is a Non-Executive Director of the Group. He
holds a Diploma in Technology (Building) from the Tunku Abdul Rahman College,
which he obtained in 1986.

Following graduation in 1986 Mr. Goh joined Ong Kah Hoe Construction Sdn Bhd as
a Quantity Surveyor, where he was involved in procurement and cost monitoring
and control. In 1988, he joined Teamwork Corporation Sdn Bhd as the Senior
Quantity Surveyor before moving on to Pamara Sdn Bhd in 1993, as the Contracts
Manager. Both positions required him to oversee and manage project tenders,
budgets, costs control and project execution. Before joining Plant & Offshore
Corporation as a director in 2004 Mr. Goh also worked at TAS Construction Sdn
Bhd as the Contracts Manager, CT Perwira Sdn Bhd as the General Manager and was
appointed as a Director of MDO Engineering Sdn Bhd, an engineering and
construction company.

Mr. Goh has approximately 20 years of experience in construction, procurement,
contract/project budgeting, tenders, project management, planning, and business
development.

Mohammed Sohail Bhatti, Non-executive Director

Aged 47 and a British citizen, Sohail Bhatti is a Fellow of The Association of
Chartered Certified Accountant (FCCA). After graduating with an honours degree
in Mathematics and Management Science he trained with a firm of Chartered
Accountants for 6 years before leaving to head up the finance function of a
group providing security services to the automotive industry. In 1998, he joined
Transcomm plc, an AIM quoted telecommunications group as finance director for
one of its subsidiary undertakings. During his 6 years at Transcomm he gained
considerable experience in serving the boards of a public company, culminating
in the disposal of the Transcomm group to British Telecommunications plc in
2004. Having left Transcomm he supported the private equity acquisition of
Mobitex, a former Ericsson data radio technology company and set up his own
accountancy practice. He has experience in both advising and managing companies,
particularly in growth and turnaround situations. He was appointed to the Board
of the Company on 7 May 2007.




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