JDR Reports Record Results for Full Year 2012

LONDON, April 16, 2013 /PRNewswire/ --

16 April 2013: JDR, a leading provider of technology connecting the global offshore energy industry, has published its results for the twelve months ended 31 December 2012^[1] together with its Annual Report.

Financial Highlights for the 12 months to 31 December 2012

• Record revenues of £129.9m (2011: £83.2m), an increase of 56%
• Record EBITDA performance of £25.8m (2011: loss of £4.1m) driven by higher revenue and productivity improvements
• Record operating cash inflow of £19.6m and enhanced financial flexibility following repayment of all senior bank debt in 2011

Operational Highlights 2012

• Strong product demand, especially for longer and larger subsea production umbilical and power cables
• Improved productivity across the business due to on-going benefits of long-term investment in manufacturing facilities, business processes and people
• Important new supply deals announced with Swiber Offshore Construction Pte Ltd for the Brunei Shell Petroleum Champion Field, German offshore wind energy company WindMW GmbH and the completion of major oil and gas projects for Santos in Australia and China National Offshore Oil Corporation (CNOOC)
• Continue to grow full-service capability with diverse product portfolio from design services, to product solutions, to aftermarket support
• Favourable market conditions as offshore markets continued to grow

Post Period Highlights

• Trading for the first quarter of 2013 has been in line with management's expectations

Andrew Norman, Chief Executive of JDR, said:

"I am delighted to report that JDR has delivered a record performance in 2012, which provides a platform for the company to achieve even greater success in the future. Our record revenues and EBITDA of £129.9m and £25.8m for the twelve months ended 31 December 2012 reflect how the investment JDR has made in recent years is now delivering outstanding results.

"Our ability to deliver complex projects, in addition to our growing 'full-service' design to aftermarket offering, places us in a powerful position from which to drive sustainable and profitable growth.

"Combined with a favourable market environment, we are confident that JDR has the ability to deliver continued growth in 2013 and beyond."

Operating update

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1. The JDR Group of companies has changed its financial year end from 31 March to 31 December.  The performance figures included in this announcement are unaudited 12 month pro forma figures, which include audited results for the nine months from April to December 2012 and three months of profit and loss account and cash flow figures from the final quarter of the year ended 31 March 2012.  For more information please refer to the JDR Cable Systems (Holdings) Annual Report 2012.

Revenue for the twelve months ended 31 December 2012 rose from £83.2m in 2011 to £129.9m which, combined with excellent performances by the sales and production divisions, resulted in a record EBITDA of £25.8m for the calendar year. This represented a step change compared with 2011, when the Group delivered negative EBITDA of £4.1m.

Cash flow and net debt

Operating cash inflow of £19.6m in 2012 compared to an outflow of £10.5m in 2011, with £13.3m of this being used to repay debt, consisting of bank lending and shareholder loans. This has significantly strengthened the group balance sheet, so that net assets totalled £31.6m at year end (2011: £13.5m). The accumulated deficit in the profit and loss account has been eliminated.

Our cash flow conversion, measured as operating cash flow less capital expenditure divided by EBITDA, was 59%. Going forward, whilst we expect EBITDA to continue to increase, working capital changes and capital expenditure will increase at a slower rate. This will result in a rise in free cash flow, and an increase in cash conversion rates, which will benefit the business and provide the Group with greater financial flexibility.

Capital Expenditure

Having reaped the benefits of its investment in developing technologies and manufacturing infrastructure, the Group spent £4.3m on its capital expenditure programme for the year.  Of this amount, £2.5m went towards continued enhancements at JDR's state-of-the art Hartlepool plant, which now employs 157 people.

Order intake

JDR had a record order intake of £112.5m in 2012, with a compound annual growth rate of approximately 20% since 2008. The Group expects this level of growth to continue and is confident about the order intake for 2013 and beyond.

Outlook

The new financial year has started well and performance is in line with management's expectations.  This, combined with the growing global market for offshore energy, gives the Board confidence in JDR's ability to deliver continued growth during 2013 and beyond.

About JDR

JDR is a leading provider of technology connecting the global offshore energy industry. Our products and services enable vital control and power delivery to offshore oil, gas and renewable energy systems.

The world's major energy companies and subsea service providers depend on high performance subsea control umbilicals and subsea power cables that operate in the world's harshest offshore environments. JDR invests in state-of-the-art manufacturing facilities, technology and people to deliver these world-class subsea products.

We have a proven track record of delivering client expectations and are totally committed to lifecycle customer service. We achieve this through our specialist engineering teams, experienced project management, integrated safety systems and a global service network that ensures 24/7 aftermarket support.

The Group has nearly 500 employees in six countries.

SOURCE JDR