BATEMAN Reports Exceptional Results

The audited group results published on 13 September 1999 revealed that Bateman Project Holdings Limited (BATEMAN) had produced exceptional results during the year to June.

Income attributable to ordinary shareholders, including abnormal income, increased by a sizeable 51% to R92,24 million (1998: R26,25million).This included an abnormal trading profit of R42,80million, relating to the group’s involvement with Syntroleum Corporation, and R16,60million n the disposal of the group’s 45 % interest in Lurgi S.A. (Pty) Ltd.

Announcing these results, BATEMAN Chief Executive Dr John Herselman said: "This is a heartening performance in what has been a very difficult time for the engineering sector. Overall, the group’s traditional businesses performed well ahead of budget in a year which saw major projects postponed or shelved.

ENHANCED COMPETITIVENESS

"The success is due to several factors," explained Herselman. "The group’s established strategy of globalisation in its niche markets is now bringing its rewards. Further, the technical solutions we provide our clients as a process-oriented contract or and project manager are increasingly being augmented by commercial and financial solutions, greatly improving our competitive edge in this market.

"We are now also becoming involved in build, own and operate activities which bring a new dimension to our business. We have also restructured along product lines to enable clients worldwide to derive greater benefit from BATEMAN’s collective resources and competence."

REGIONAL PERFORMANCE

BATEMAN’s South African based operations generally performed well, with some considerably exceeding expectations.

In the Americas, the oil, gas and energy activities were profitable, but the minerals business suffered from a stagnant market. In Austalasia too the commodities downturn and some problematic projects resulted in a disappointing performance.

An exceptionally good performance was achieved in the Middle-East, despite the downturn in the Israeli economy. This rose out of the strategic thrust initiated into the Commonwealth of Independent States some years go.

NEW TECHNOLOGY

The abnormal trading profit a rising out of BATEMAN’s involvement with SyntroleumŽ is the reward or a policy of developing niche technologies evaluated as having a potential to provide the group with a competitive edge in acquiring future business. These technologies often simultaneously offer an attractive direct investment opportunity, as is the case with SyntroleumŽ.

Over the past few years BATEMAN has established a portfolio of such niche technologies. besides the SyntroleumŽ process, this includes the ART wax refining technology, the BATEMAN pulsed column,a novel hydro treating process, the BATCAT capsule conveying system and more recently he EMR-microwave technology for the treatment of refractory ores. These technologies are at various phases of their long-term development cycles.

BATEMAN will continue its policy of adding to his portfolio of niche technologies which offer longer term rewards.

FUTURE OUTLOOK

"BATEMAN with its global operations will continue to provide a good rand-hedge reward to investors," said Herselman. "Not only have we a good flow of new business in the pipeline, but I am confident that BATEMAN is well positioned to take full advantage of global opportunities. The commodity cycle seems to be near it slow, but it is very difficult to predict the timing of the upturn. I foresee, however, that we will continue on the path to achieve further real growth in earnings.

"I would like to express my sincere appreciation for the commitment and dedicated effort put in by he whole BATEMAN team during the past year to make our achievement possible. I also value greatly the support and cooperation of our clients, principals, suppliers, sub-contractors and business associates, without which we could not have achieved our goals this year. I thank you all very much.

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