Kentz shares drop despite forecast of strong growth
SHARES in Kentz fell by 3pc, despite the company forecasting strong growth this year as its backlog of orders rises to record levels.
The Clonmel-based engineering group said its year-to-date performance was in line with management's expectations, with orders in the first four months of this year reaching $1.8bn (€1.3bn). Its backlog at the end of April reached $4.5bn, up from $3.1bn in December.
However, shareholders at its AGM in London rejected two resolutions on directors' pay.
London-listed Kentz, which employs 14,500 people in 36 countries, has defied a slowdown in the industry and will pay out a dividend of 10.9 US cent per share next week.
The company said its prospect pipeline rose to $16.3bn from January to April, compared to $15.6bn in December and $13.7bn for April 2014.
Chief executive Christian Brown said increasing the order backlog to record levels gave the company confidence for the continued success of Kentz.
He added: "Our performance, year to date, has been in line with our expectations and we expect that 2014 overall will produce considerable revenue growth for the group."
Analysts said the results pointed to steady growth.
Goodbody's Gerry Hennigan said the firm was confident of meeting target expectations for the year.