Global design, engineering and project management consultancy WS Atkins plc has reported a “healthy pipeline of work” from its UK water utility clients with the publication today of its unaudited results for the six months ended 30 September 2015.
The Group has announced good results, with strong revenue and profit growth, reporting underlying operating profit of £59.0m (2014: £53.0m), up 11.3% year on year. Revenue for the six months rose 8.8% to £904.6m (2014: £831.4m). Secured work in hand at 30 September 2015 stood at 83% (2014: 85%) of this year’s forecast revenue.
Operational highlights include a significant improvement in its UK and Europe business and a strong performance in the Middle East. However, Atkins said it has had a difficult first half in energy, despite good growth in its nuclear and power/renewables business but challenges in some of its oil and gas markets, while it described markets in mainland China as challenging.
Atkins said its UK and Europe business has delivered significantly improved first half results, despite difficult trading conditions continuing for its aerospace business. Revenue in the region has risen to £458.7m (2014: £428.3m), at a margin of 6.5% (2014: 5.2%). Closing staff numbers rose around 5% to 9,865, (UK: 9,155; Europe: 710).
The UK business reported a 7.0% increase in revenue to £426.4m and operating profit of £29.1m. Atkins said margins had improved to 6.8% (2014: 5.7%) as its transportation and water, ground and environment businesses delivered a better first half performance against “a challenging trading period” last year.
The Group said the recent announcement by the UK Government about the creation of the National Infrastructure Commission would help build consensus behind the funding and delivery of the UK’s critical national infrastructure and “harness cross party political support to gain certainty around the infrastructure pipeline.”
Looking ahead, Atkins said it saw a healthy pipeline of opportunities in the UK market as the Government continues its commitment to infrastructure spend and foreign investment into the UK energy market increases.
“Increasing opportunities to cross-sell water sector skills into transport and energy markets”
Atkins’ water, ground and environment business has enjoyed a good first half with a healthy pipeline of work from water utility clients, including Thames Water, Severn Trent Water and United Utilities, to deliver their programmes for the 2015 to 2020 regulatory period (AMP6). Atkins has also recently been appointed by Scottish Water to provide technical consultancy support, subject to contract finalisation. Atkins said:
“We are seeing increasing opportunities to cross-sell our skills and expertise in this business into our transportation and energy markets. For example, the work we have undertaken on Crossrail and High Speed 2, and recent awards on major highways and other rail projects, are drawing on our specialist environmental and ground engineering teams.“
The transition to a new simplified UK organisational structure took effect from the beginning of this financial year and is expected to deliver both revenue and margin improvements.
Commenting on the results, Uwe Krueger, chief executive officer, said:
“This is another good set of results with strong growth in both revenue and underlying profitability. Our outlook for the full year remains unchanged. While short-term market uncertainty exists in some of our sectors, our strategic focus has put us in a strong position to benefit from longer-term growth. As urbanisation increases, infrastructure spending across the globe is predicted to grow significantly in the medium-term and we are well placed to benefit from this investment.”
One of the world's leading design, engineering and project management consultancies, Atkins employs some 18,600 people across the UK, North America, Middle East, Asia Pacific and Europe.
Staff numbers were 18,609 at the end of September 2015, 0.8% higher than at 31 March 2015 and 4.0% higher than the same time last year.
Atkins’ global design centres continue to provide an important pool of expertise that is utilised across the Group, particularly on major projects.
,
Craig Nienaber, Business Development Manager for Safe Access Solutions (SAS) at HUBER Technology, explores why the company is seeing a growing level of interest in its safe access solutions for critical infrastructure providers, including their application in wastewater treatment assets.
Albion Water, the first NAV (New Appointment & Variation) to have been established in1999 and now under the ownership of SDS Water Group, has appointed Andy Holland as its new Director of Business Development.
UK water companies are invited to join an upcoming webinar which will explore how the sector can take indirect potable reuse (IPR) from concept to full-scale operational reality.
James Sumsion, CEO of predictive water intelligence specialists Kohtari, says the water sector needs to take a giant leap forward, so that it can anticipate and act upon water quality issues - rather than merely react.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.