6th Aug 2008 07:00
Q1 2008/9 Interim Management Statement
WS Atkins plc ("Atkins" or "the Group"), the design and engineering consultancy group, today provides its Interim Management Statement for the period from 1 April 2008 to date.
Performance
The Group has started the year well with performance in the first quarter in line with our expectations. Overall the markets in which we operate remain strong and the Group continues to make good progress.
The Group's financial position remains good although our cash flow in the first quarter reflects the usual seasonal profile.
The Design and Engineering Solutions segment as a whole is performing in line with our expectations. Our businesses in defence, oil and gas and aerospace are making good progress in strong markets. Our UK design business, which was restructured towards the end of last year, has won a number of good contracts, the benefit of which will come through next year.
As anticipated, our Rail segment has started the year well. Following the resignalling at Port Talbot, work has commenced on the resignalling at Newport as part of Network Rail's continuing programme of upgrading the signalling systems in Wales and the South West.
The Highways and Transportation segment is making solid progress. The mobilisation for our Area 6 contract, which started on 1 June 2008, was completed successfully and our initial design activity on the M74 Completion Project has commenced. The Group is also part of the Connect Plus consortium that is now preferred bidder for the M25 DBFO contract and we hope to reach financial close before the end of the year.
Our Middle East business continues to make progress ahead of our expectations and is growing very strongly. Demand for our services remains very high and project opportunities continue to develop further. In the first quarter we have won the contract to design Tameer Tower (which at over 600m will become the second highest building in Dubai) as well as a number of other good contracts in Dubai, Abu Dhabi and Oman. Our Europe and China businesses are making progress in line with our expectations.
The Management and Project Services segment is performing in line with our expectations. Our cost consultancy business, Faithful+Gould, is performing well and the range of its client base should ensure that it continues to make progress despite the tougher economic environment. Our Management Consultants business has started the year in line with our expectations and is recovering in line with our plan.
Outlook
Across the Group as a whole our forward workload remains strong and we remain confident that the Group will continue to make further progress this year.
Enquiries
Atkins:
Robert MacLeod, Group Finance Director + 44 (0) 1372 726140
Sara Lipscombe, Group Communications Director
1. Cautionary statement
This announcement may contain indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group's results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently anticipated. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.
2. Analyst conference call
There will be a conference call for analysts at 0830 today. Details are available from Aidan Holloway at Smithfield (+44 (0) 20 7903 0602).
3. Atkins
Atkins (www.atkinsglobal.com) is a multinational engineering and design consultancy, providing expertise to help resolve complex challenges presented by the built and natural environment. Atkins is the largest multi-disciplinary consultancy in Europe, the largest engineering consultancy in the UK and the world's eighth largest international design firm (sources: New Civil Engineer Consultants File, 2008; Building Magazine, 2007; Engineering News Record, 2008).
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