Bateman Engineering N.V

Company Name: Bateman Engineering N.V.
Stock Market: AIM (LSE: BATE)
Industry Sector: Business Services
Market Capitalisation: $6.99 million (as of 5 March 2009)
Yearly Revenue: $675.4 million (as of 31 June 2008)
Operating Income: $9.0 million
Net Income: $16 million
Total Assets: $419.5 million

Key People: Richard Menell (non-executive chairman of the board nd independent non-executive director), Jonathan Du Rand (CEO and executive director), Philippe Monier (chief financial officer and executive director), Arnold Matthee (CEO - Bateman Engineered Technologies and executive director), Pieter Du Plessis (chief executive officer – BEP, executive director)

Headquarters Address: Rivierstaete Building Amsteldijk 166 Amsterdam, 1079 LH, Netherlands
Number of Employees: 90 (as of March 5, 2009)
Website Address: www. batemanengineering.com

Company Overview:

Bateman Engineering N.V. is a technologically-driven engineering project house that serves the global metal and mineral industries. Bateman encompasses the mineral and metal processing, mining, environmental protection, mineral salt processing, ferroalloy processing, bulk-material handling, and water and effluent treatment. It also serves the energy and power markets in Southern Africa. It provides solutions to convert natural resources into marketable products. These solutions include process-orientated engineering, financial and commercial facilitation, specialist niche technologies, and project and contracting management. The company specialises in the design and construction of process plants customised to meet the clients’ specifications. It manages the conceptual development, design, financing, construction, engineering through commercial operation, and commissioning to maximise the profitability and success of a project. It also assists its clients in sourcing and structuring project funding, through its relationships with top development finance institutions, export credit agencies, and international banks.

Bateman is incorporated in the Netherlands, and has operational centres in South Africa, India, Russia, Australia, China, and Botswana. The company operates mainly in areas with growing economies where the ability to assist clients in arranging commercial agreements and raising project funds promotes the security and stability of the business. Its offices are strategically located worldwide to ensure an efficient and cost-effective service to clients.

Current Financial Overview

In April 2008, Bateman completed its acquisition of Delkor’s group of entities. Prior to the transaction, Delkor did not operate as a consolidated group. It was only connected through the sharing of intellectual property, common brand, and some common ownership. The Delkor acquisition was made for a maximum consideration of $45 million or EUR30 million. It is still subjected to adjustment based on an increase in profit before tax. To date, the company has paid a total of $5.4 million for the transaction. Also in 2008, the company gained an international licence from University of Melbourne. The licence allows the company to market the Composite Furnace Module or CFM cooling technology.

For the year ending June 30, 2008, the company’s revenue increased by 43%, from $471.1 million in 2007 to $675.4 million. The 51% decline in operating profit, from $18.3 million in 2007 to $9.0 million, was due to the company’s poor execution of the LSTK projects. Its total assets increased from $310.0 million in 2007 to $419.5 million. In addition, its profit-after-tax showed a 20% decrease, and amounted to $16.4 million. Meanwhile, its attributed profit increased by 3%, and amounted to $12.5 million.