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Interim Management Statement

17th Feb 2010 07:00

RNS Number : 2518H
Atkins (WS) PLC
17 February 2010
 



Atkins remains confident about full year performance

 

WS Atkins plc ("Atkins" or "the Group"), the design and engineering consultancy group, today provides its Interim Management Statement for the period from 1 October 2009 to date.

 

Performance

The Group has continued to perform strongly following the good performance in the first half, and the year to date results have been in line with our expectations. Market conditions remained turbulent during the period and the Group has continued to respond proactively in adjusting staffing levels in line with prospective demand and delivering cost saving efficiencies.

 

In the Design and Engineering Solutions segment, as anticipated, we have continued to undertake significant restructuring in a number of businesses. In particular we have scaled back our water operations business due to the reduced workload requirements of the UK water companies following the final determination under AMP5 delivered late last year. In contrast, our energy business is investing in resources to meet the expected increase in demand in the nuclear and renewables sectors.

 

The performance of our Highways and Transportation business remains strong, benefiting from the UK government's fiscal stimulus programme. Our design work on the M25 widening scheme is ongoing and the initial section is now complete. The associated operations and maintenance contract is progressing well.

 

As anticipated, the Rail segment has continued to deliver good results. We have successfully completed the first major commissioning of the Newport re-signalling project during the period and we continue to work closely with Chiltern Railways and their approved contractors on their upgrade programme.

 

Our Middle East business has traded well during the period despite the ongoing liquidity issues that emerged in the region in November. With just under 2,000 people now working in the Middle East, we are focused on extending both our geographic reach and sector skills as we expand our multi-disciplinary presence in the region. Our Europe and China businesses are progressing in line with our expectations, with our rail business in Hong Kong remaining particularly busy.

 

Within the Management and Project Services segment our management consultancy business has remained strong throughout the period. Our Faithful+Gould business continues to perform in line with our expectations in a highly competitive marketplace.

 

Following our exit from the previously reported poorly performing PFI maintenance contract, the results of our Asset Management segment remain stable.

 

Financial Position

The Group's financial position remains good, with our ongoing focus on working capital delivering a strong cash flow performance in the period.

 

Following the expiry during the period of a letter of credit issued in respect of the Metronet enterprise, the Group has released a related provision and a one-off, non-cash credit of £25 million will be reflected in the Group's full year income statement.

 

Outlook

Whilst the economic environment remains challenging, our good performance to date underpins our confidence for the full year. We continue to take the necessary steps to navigate successfully in difficult market conditions and our early action has positioned the business well for the future.

 

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. 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 0800 today. Details are available from Will Henderson at Smithfield (+44 (0)20 7903 0671).

 

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 2009; 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.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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