Shares in Kentz Corporation (LON:KENZ) rallied this morning after the engineering firm reported that demand for its services remained strong and it still expected to top full year expectations.
Today’s bullish update came only a month after Kentz said its full year performance would be slightly ahead of forecastsas it continued to grow revenues and order backlog over the first four months of the year.
Kentz reported today that intake of new orders and growth from existing clients reached US$700 million and it had an order backlog of US$2.5 billion at the end of May.
Reimbursable contracts make up 66 percent of the backlog, while unit rate reimbursable contracts and lump sum work account for 12 percent and 22 percent respectively.
This backlog, said Kentz, gives it visibility of work up until 2015 and “positions us strongly for continued growth in the business”.
The group also noted that many of its clients now take a long term view when considering future developments due to the recent volatility in the price of oil.
“Kentz works hard to maintain a thorough understanding of our clients' development challenges particularly in the current economic climate,” said chief executive of Kentz Christian Brown.
“Despite the current volatility in world markets, we continue to see strong demand for Kentz's services.
“Our broad base of clients, diversity of operations and significant global footprint gives us great confidence for the future.”
Investors cheered the update, sending Kentz up 6.5 percent to 347 pence by 10:10am, giving the group a market cap of £404 million.