Rock Solid Images plc Trading Update and Preliminary Results

Rock Solid Images plc Trading Update and Preliminary Results

Rock Solid Images plc has made a promising start to 2012 and is pleased with the growth it is seeing in its order book. The Company has recently announced a series of contract awards in its integration of seismic, CSEM and well data and reservoir characterisation business lines.

Highlights since the Company's year-end in August 2011 include:

  • Project awards and other new contracts across all business lines so far this financial year total £2.9 million with the revenues expected to be recognised before 31 August 2012;
  • Continued sales of a 79 well multi-client rock physics study in the Barents Sea and commencement of a 61 well multi-client rock physics study in mid-Norway;
  • Commencement of a strategic review to consider the options available to RSI and its WSS and WISE operating division; and
  • Cash balance of £0.9 million at 31 December 2011.

RSI also presents its Preliminary Results for the 12 months ended 31 August 2011.

Highlights for the year include:

  • Completion of the disposal of loss making marine CSEM acquisition business in November 2010;
  • Re-focus of remaining business on geophysical data processing and interpretation, with particular emphasis on the geophysical characterization of un-conventional shale plays and on WISE integration of seismic, well log and EM information; and
  • Change of name to Rock Solid Images plc and re-branding of trading entity to RSI.

In November 2010, the marine CSEM acquisition business was divested to new owners. This removed a huge financial burden from the business and resulted in a substantial reduction in losses for 2011 to £2.4 million compared to £17.1 million reported from the previous financial year.

Despite the sale of the EM acquisition business, revenues increased slightly over the previous year from £3.6 million to £4.0 million in the year to 31 August 2011.

The Company is now focused on high-end seismic and non-seismic data processing, analysis and integration to provide clients with quantitative information on which exploration, appraisal and development decisions can be based. The Company has invested in people and technology and is poised for both revenue and value growth.

Peter Reilly, Rock Solid Images Non Executive Chairman said: "The key to your Company's future success is increasing sales, developing efficient processing and interpretation teams and exploiting the best integrated software. We have been directing investment into all these areas. Your Company is now well positioned to leverage our technology and expertise in a number of high-growth areas such as un-conventional shale gas development and the emerging use of combined seismic and EM data to de-risk deep-water offshore wells. The announcement of recent contract awards shows that the RSI team is very much engaged in building the business and pursuing commercial opportunities."

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