Design and engineering consultancy group WS Atkins plc has announced its preliminary results for the year ended 31 March 2011.
Chairman Allan Cook and chief executive Keith Clarke said they were pleased with the results.
Global revenues were up 12% to £1,564.3m from £1,387.9m last year, most of which was attributable to the acquisition of US-based consultancy PBSJ in the USA last October. Staff numbers worldwide also increased by approximately 2,000 - again, predominantly as a result of the PBSJ acquisition. On an underlying basis the Group’s operating profit rose by 7.5% to £118.7m and the Group’s operating margin was 7.6%.
In the UK, revenue fell by 5.8% on the previous year - down from £983.5m to £926.5m, while operating profit dropped by 20.6% - down £77.3m to £61.4m. Staff numbers also reduced from 10,387 to 9,640 - fall of 7.2%.
AMP5 work now starting to flow
Atkins said that overall the UK business had performed in line with expectations, successfully navigating difficult market conditions. However, material growth would be difficult in the near term and the focus therefore remained on managing headcount to meet the anticipated market demand for its services, driving efficiency in through cost reductions, and supplementing skills with niche acquisitions where appropriate.
Describing itself as the market leader in UK engineering consultancy, with preeminent rankings in the roads, rail and defence sectors, Atkins said its design and engineering business, employing around 1,000 staff, had had a year of change both in terms of its external market and some internal reshaping.
In the water sector, Atkins said its water and environment business of around 1,400 staff was seeing an improving volume of work as the latest five-year regulatory Asset Management Programme (AMP5) takes effect - including a further strengthening of its presence in the water sector with an appointment on the Welsh
Water framework. Atkins commented:
"Although some clients were initially slow to release work due to the wider economic situation, there is a substantial programme of investment required by the industry to meet the UK regulator’s settlement and work is now starting to flow."
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