News & Analysis

Velosi Limited (VELO: AIM) review and analysis

By PSQ Analytics

Velosi Limited (Velosi), incorporated in March 2006, is the holding company for Velosi Group. The Group, founded in 1982, provides asset integrity management, health, safety and environment services, which cover quality assurance and quality control services, to a number of leading national and multinational companies, primarily in the oil and gas sector. The Group’s principal services are:

– Asset Integrity Management Services: These involve ensuring that people, systems, processes and resources are in place, in use and will perform when required over the whole lifecycle of the asset.

– Project verification service: The Group manages and controls quality, right from purchasing and construction through to commissioning, on behalf of the asset owner. These services include reviews of project designs, implementation and operation of quality management systems, auditing and monitoring of contractor quality procedures and on-site supervision of contractors.

– Maintenance quality management services: Velosi Group enables asset owners to safeguard capital investments and take steps to ensure that production outputs are not disrupted. These services comprise corrosion monitoring and consultancy services, CCTV services, tube inspection, lifting equipment inspection, rig inspection, high definition laser surveying and risk based inspection.

– Certification services: The Group is accredited to international technical authorities to certify plant and equipment for international quality standards. Equipment which the Group is approved to certify includes pressure equipment, heavy lifting equipment (including cranes) and boilers.

– Statutory inspection services: There are certain statutory requirements which require asset owners and operators to have their equipment certified on a regular basis so that the equipment are sold or operated in accordance with local or international legislations.

The Group operates globally through 5 regional centers in the US, UK, Malaysia, Abu Dhabi and South Africa and has operational or representative offices in more than 36 countries worldwide. Its key customers include multinational companies, public utilities, engineering contractors, manufacturing facilities, and small fabrication workshops. Some of the Group’s major clients are BP, Enppi, ExxonMobil, Qatar Petroleum, Transcoand Shell.

Key recent news

10 February 2010: Announced that the Group acquired the ‘Velosi’ trading name in Malaysia for GBP4.34 mn, to be satisfied by the issue of up to 4.76 mn ordinary shares. It has also signed a licensing agreement with Velosi Malaysia.

3 November 2009: Announced that it reached an agreement to acquire shares in Velosi Nigeria and Velosi Angola heldby Richard Ogunmakin’s estate. As a result, Nigerian operations are expected to recommence under a local manager.