7th Oct 2013 10:19
LONDON (Alliance News) - Waterman Group PLC, an engineering and environmental consultancy, Monday reported a decrease in pretax profit and revenue for the full year, but still increased its dividend by 67%.
The company posted pretax profit of GBP353,000 for the period ended 30 June, down from GBP530,000 a year earlier, while revenue fell to GBP66.8 million from GBP68.8 million in 2012.
Waterman said its divisions experienced mixed fortunes, with its building-services division posting a fall in revenue to GBP5.4 million from GBP5.9 million a year earlier, while its international operations continued to experience challenging conditions as projects stalled.
Waterman decided to restructure its overseas activities, leading to a withdrawal from China and the United Arab Emirates, as a result revenue for the division fell to GBP16.5 million from GBP20.7 million in 2012.
However, the civil and transportation consultancy business performed slightly better than in 2012, with revenue increasing to GBP25.6 million, from GBP25.1 million, as did the environmental businesses which reported revenue of GBP7.3 million, from GBP6.5 million a year earlier.
The structural business saw significant improvements across the property sector and posted revenue of GBP12.0 million, up from 10.6 million in 2012.
Earnings before interest, tax, depreciation, amortisation and exceptional items declined to GBP1.7 million, from GBP2.1 million a year earlier, as operating profit more than halved to GBP456,000 from GBP1.0 million.
Net cash increased 22% to GBP1.1 million, while the order book rose 5% to GBP105 million, driven by improving confidence in the UK property sector, which remains the group's largest market.
The board declared a total annual dividend of 0.5 pence per share, up from 0.3 pence and said it aimed to reduce dividend cover from the current 2.8 times towards 2.0 times over the economic cycle.
Despite the company's struggles, it remained upbeat as its markets show signs of recovery.
"We are particularly enthusiastic about the prospects for our core market in the UK, which generates over 75% of Waterman's revenue. Our clients, many of whom are the major property developers, are much more confident and are starting a wide range of schemes," Chief Executive Nick Taylor said in a statement.
"At the same time, we have reinforced our footprint and I am delighted that we are increasing our market share. As a result, our order book is strong with some first class projects, including the 1,000,000 (gross) square foot new UK headquarters for Google UK Limited at King's Cross," Taylor said.
Waterman shares were trading at 54.00 pence Monday morning, up 5.00 pence, or 10%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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