Oil and gas industry quality control specialist Velosi says favourable market conditions have stimulated interim growth.

In an upbeat trading statement, the Reading-based company, which provides ‘asset integrity services’ to major national and multi-national oil and gas companies, says expansion into new areas, such as Angola, Ghana and Vietnam, helped maintain ‘strong revenue growth’ in the six months to June. Contract wins from new and existing clients and consolidation of acquisitions made in 2007 made useful contributions.

Steered by chief executive Dr Nabil Abdul Jalil, AIM-quoted Velosi, which increased pre-tax profits 43 per cent to £5.7 million last year on turnover up 67 per cent to £59 million, says its profits will be ‘more heavily weighted’ to the second half of this year, as a result of more recent contract wins. The company, which ended June with a useful £8 million cash, is negotiating the future ownership of Velosi Nigeria with the estate of its former partner there, and growth in Europe, Angola and elsewhere should compensate for any fall in Nigeria’s contribution that may result.

Floated two years ago at 90p, Velosi shares reached 170.5p last October, but have retreated since then. Now 92.5p, up 5.5p this morning, they value the company at £38.8 million and have some speculative appeal.

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Velosi	AIM	£23.09m	55.00p	0.00p
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Revenues ‘strong’ at Velosi			22/07/2008
Velosi on course for target			28/09/2007
Velosi wins five new contracts			31/08/2007
Velosi ‘in line’			27/07/2007
Velosi expansion pays off			23/07/2007