25th Sep 2014 06:48
LONDON (Alliance News) - WS Atkins PLC Thursday said its expects its performance in the first half to be in line with expectations, despite facing the company facing currency headwinds in the period and experiencing a mixed performance in the UK and Europe.
The FTSE 250 design, engineering and project management consultancy said its performance in the first half to September 30 in the UK and Europe has proved mixed. It said that while it has seen high volumes in its rail business, the financial performance of this unit continues to be impacted by a number of outstanding variation negotiations.
The group said it has looked to address utilisation issues in its aerospace and water and environmental divisions by cutting headcount and redeploying staff in the first half.
It said, however, that it remains confident of continued demand for its services in the UK as the government continues to implement its strategy of investing in infrastructure.
During the period, the group reached a deal to sell its Polish arm to Multiconsulta AS, the Norway-based consultancy and design business, for GBP2.8 million in cash.
Also in the period, Atkins completed its restructuring in North America, with the introduction of a new technical professional organisation at the start of the year. It said that while it expects this restructuring to reap long-term benefits, the positive impact of the moves in the first half is likely to prove muted.
In the Middle East, Atkins expects a significant year-on-year improvement on the back of a strong first half in which the group progressed work on a number of metro projects in the region.
Atkins said its business in Asia Pacific is performing in line with expectations.
Earlier this month, the group completed the acquisition of Nuclear Safety Associates Inc, but said it did incur around GBP4.5 million in external fees related to the unsuccessful pursuit of another acquisition target.
Atkins said its financial position remains strong and said its outlook for the full year is unchanged and in line with expectations, despite currency headwinds.
By Sam Unsted; [email protected]; @SamUAtAlliance
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