Oil and gas quality control provider Velosi is discussing two possible UK corporate deals after more than doubling annual profits.

AIM-quoted Velosi, headed by Malaysian nuclear physicist and significant shareholder Dr. Nabil Jalil, scored a 119 per cent increase in pre-tax profits to £4 million last year on turnover up 117 per cent to £35.5 million. Jalil said the company derives much of its business from Exxon/Mobil and Shell, and has been growing organically and by acquisition.

He said the company, most of whose contracts run for three to five years, is positive about business for the next two years. Velosi, with some £6 million in cash, is looking for acquisitions with new technology, which would also extend its geographical spread, thus helping the company match its multinational clients’ requirements.

According to Jalil, Velosi is looking to pay with a mixture of shares and cash for between 51 and 60 per cent of ‘partnerships’, rather than outright acquisitions. That way, target companies’ present drivers retain incentives to grow the business and maintain relationships with key clients.

Chiefly focused overseas, Jalil said Velosi is also hoping to break into the UK market, which is why it is talking to possible domestic targets/partners.

At 118.5p, up 13p today, Velosi shares are 40 per cent up since last January. Hold on for now.

Velosi	AIM	£24.14m	57.50p	0.00p
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Other company articles:
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