18th May 2005 10:24
AMEC PLC18 May 2005 AMEC plc 18th May 2005 AGM TRADING STATEMENT - 2005 trading on track; long-term prospects good Highlights of the AGM statement - 2005 trading in line with expectations - All three business segments expected to make progress in 2005 - Order book increased to £2.9 billion (31 December £2.4 billion) - The board remains confident that AMEC will make further progress in 2005 AMEC, the international project management and services company, is holding itsannual general meeting at 10.30 am today in London, UK. At the meeting, chiefexecutive Sir Peter Mason will confirm that the board expects to see furtherprogress in 2005 in line with its expectations at the time of AMEC's preliminaryresults announcement in March. AMEC will make a further trading statement on 30 June before entering the closedperiod ahead of the company's interim results for the six months ending 30 June2005, which will be announced on Thursday 1 September 2005. Business Review Engineering and Technical ServicesThe Multitechnical Services business in Continental Europe has had a good startto the year and remains on track to improve sales and overall margin in 2005.The business continues in its strategy of geographical expansion, with £17 million invested on two acquisitions in France in the year to-date. The Environmental Services business continues to report record levels ofactivity, driven by strength in federal spending in the US and Iraq. Improved performance is expected in 2005 in AMEC's North American industrialbusinesses as previously indicated. Oil and GasActivity levels remain high across all areas of the business and severalimportant contracts have been secured since the year-end. These includeTalisman's Tweedsmuir contract to modify the Piper B platform in the UK NorthSea, an offshore services contract awarded by Woodside Energy, Australia and acontract to design and deliver a new gas storage facility at Aldbrough, UK,awarded by Scottish and Southern Energy. The Paragon business, acquired January 2005, has been successfully integratedinto AMEC's Houston operation and is performing in line with expectations. Project SolutionsThe Project Solutions business had a good start to the year with the award ofpreferred bidder status on three major PPP projects - Docklands Light RailwayWoolwich Arsenal extension, Colchester Hospital and South Lanarkshire Schools.Financial close on the £700 million Incheon Bridge project in South Korea isexpected in the next month or so. OrdersOrder intake in the Engineering and Technical Services business continues togrow, whilst the order book in Oil and Gas and Project Solutions has increasedsince the year-end to £2.9 billion (31 December £2.4 billion). Net debt Average weekly net debt has been about £360 million in the year to-date. OutlookAll three business segments are expected to make progress in 2005 and prospectsare good. The board remains confident that AMEC will make further progress in2005 in line with its expectations at the time of AMEC's preliminary results in March. A telephone conference call for analysts and investors will be held at 2.00 pmtoday. Enquiries to: AMEC plc + 44 (0)20 7634 0000 Analysts/Investors:Stuart Siddall, Finance DirectorNeil Jamieson, Director of Investor Relations Media:Juliet Sychrava, Director of Corporate CommunicationsCharles Reynolds, Head of Media Relations AMEC plc is an international project management and services company thatdesigns, delivers and supports infrastructure assets for customers worldwideacross the public and private sectors. AMEC employs 44,000 people in more than40 countries, generating annual turnover of around £5 billion. AMEC's shares aretraded on the London Stock Exchange where the company is listed in the SupportServices sector (LSE: AMEC.L). Internet users will be able to view this announcement, together with otherinformation about AMEC plc, at the company's web site www.amec.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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