Shares of Silverdell Plc. (SID.L) are climbing more than 4 percent in early morning trading on the London Stock Exchange Friday, after the company said its first-half trading has been in line with expectations.
The specialist environmental support services group expects a surge in revenues and adjusted Earnings Before Interest, Tax, Depreciation and Amortization, or EBITDA.
In a trading update ahead of its interim results for the six months ended March 31, the company said revenues are expected to nearly double to at least 62 million pounds, compared to 31.4 million pounds generated last year. The company had acquired EDS Group Holdings Limited in June 2012, which has been integrated as planned.
Adjusted EBITDA for the period is expected to be in the range of 4.5 million to 5.0 million pounds, significantly higher than 1.8 million pounds reported last year.
The firm's Canadian and Australian operations experienced a good first half, with the Hydro Quebec site acquired in January 2013 performing in line with expectations. Market conditions in the UK remained challenging through the first half.
The Group's order book at March 31, 2013 stood at 210 million pounds, compared to 133 million pounds as at March 31, 2012. The firm has about 60 million pounds in additional revenues confirmed for the second half of the current financial year.
The company was recently awarded a 2.5 million pounds decommissioning / remediation contract for a chemical manufacturing facility in Scotland and 1.5 million pounds of remediation works on a pet food plant in the Midlands.
Silverdell said it has a strong tendering pipeline of over 200 million pounds across its key growth territories of Canada, Australia and continental Europe. The firm is currently at advanced stages on contracts valued at in excess of 30 million pounds.
Total net debt is expected to be 15 million to 16 million pounds, compared to 6.7 million pounds last year. Silverdell said this high point reflects the peak working capital requirements of Hydro Quebec and the acquisition of additional capital plant and equipment in Canada.
''A strong order book gives the Board confidence for the future and in particular its expectations for the financial year ending 30 September 2013, which remain unchanged,'' the company said in a statement.
The firm is slated to report first-half results on June 5.
The stock is up 4.5 percent in early morning trading at 16.19 pence.
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