5th Aug 2009 07:00
Atkins continues to navigate successfully through
challenging market conditions
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 2009 to date.
Performance
The market conditions during the period were as we had anticipated and the Group has begun the year in line with our expectations with revenue in the first quarter broadly flat year on year. We have continued to flex our business to reflect the challenging trading conditions in a number of our markets and we have reduced our headcount accordingly.
In Design and Engineering Solutions our water business has experienced a more significant slowdown than in previous years in the period between the AMP cycles. The market for the UK building design business remains soft. In contrast, our energy business has begun the year well.
As anticipated, the Rail segment has started the year well. Despite the loss of the CEFA/SEC contract with Network Rail at the beginning of May, our rail business remains robust, underpinned by a number of major contracts.
Our Highways and Transportation segment has also started the year well. Good progress has been made on the design work for the M25 widening project and, following financial close in May, the mobilisation of the operations and maintenance contract is proceeding towards its September start date. Elsewhere, the detailed design contracts on the N6 Galway and M74 are nearing completion.
The regional liquidity issues experienced in the latter half of the last financial year have continued to dominate the agenda in the Middle East market. Although some cash payments are now being received and bidding activity is starting to increase, the overall market remains challenging. Further restructuring costs have been incurred in the region as resource levels have been reduced to meet anticipated demand. The Europe and China operations are making progress in line with our expectations. In particular, our rail business in Hong Kong remains strong.
The Management and Project Services segment is trading in line with our expectations, with the management consultancy business performing well.
Financial position
With net funds in excess of £200 million, the Group's financial position remains good. As anticipated the Group experienced a seasonal working capital outflow in the first quarter.
Outlook
We continue to be well placed to navigate through challenging conditions in a number of our markets and the overall outlook for the Group remains unchanged.
Ends
Enquiries
Heath Drewett +44 (0)1372 726140
Group finance director
Sara Lipscombe +44 (0)1372 726140
Group communications director
Notes to editors
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 one of the world's leading engineering and design consultancies. We have the depth and breadth of technical expertise to respond both to the complex challenges of major infrastructure projects, and the urgent transition to a low-carbon economy. Whether it's the concept for a new skyscraper, the upgrade of a rail network, the modelling of a flood defence system or the improvement of a management process, we plan, design and enable solutions.
Atkins was named among the 20 Best Big Companies to Work For 2009 by The Sunday Times; The Times Top 100 Graduate Employers 2008; and The Times Top 50 Companies Where Women Want to Work 2008. The company was construction and civil engineering sector winner for the fourth consecutive year in the Target National Graduate Recruitment Awards 2009.
Atkins is the official engineering design services provider for the London 2012 Olympic and Paralympic Games.
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