UK business drags on WS Atkins gains
INFRASTRUCTURE design consultancy WS Atkins said its global growth strategy made it better able to manage the difficult economic environment, helping it post a 9.4 per cent rise in pre-tax profit in the past year.
Atkins said revenues increased by 12.7 per cent to £1.56bn in the year to the end of March, while underlying profits rose to £102.7m.
But its UK business experienced a 20.6 per cent slump in operating profit and 5.8 per cent fall in revenue in tough conditions.
“We have identified that material growth in this segment will be difficult in the near term,” the firm said.
Operating profit was £61.4m, down from £77.3m in 2010, while revenues fell to £926.5m, though WS Atkins said the fall was in line with its expectations and it saw the outlook as stable.
“Work in hand is broadly consistent with the same time last year and we enter the new financial year with confidence in our ability to navigate what remains a difficult market.”
WS Atkins cut its UK employee headcount by 7.2 per cent to below 9,640 in the year to adjust to the lower levels of business.
It said the year had been “transformational” as it added a new acquisition in the US and broadened its work base in the Middle East, which gave it greater resilience.
It has raised its dividend by 5.5 per cent, but it was not enough to stop the firm’s shares slipping 3.2 per cent.