WS Atkins UK profits fall 20 per cent
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, the UK’s largest engineering consultancy, said revenues increased by 12.7 per cent to £1.6bn in the year to the end of March, while 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,” it said in a statement.
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.
But at group level headcount increased by 12.3 per cent – or 2,000 employees – to a total 17,522 after it bought US-based consultancy PBSJ.
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.
“As we had expected, in a number of our markets, fiscal budgets have remained under pressure throughout the year,” it said.
“The Group continues to demonstrate its resilience in difficult economic conditions, while at the same time delivering our strategy through geographic and sector diversification supported by a strong balance sheet.”
It has raised the dividend by 5.5 per cent.