Atkins

Press Release

Results for the year ended 31 March 2008

25/06/2008

View the full announcement as a PDF.

Design and engineering consultancy group WS Atkins plc (Atkins) today announced preliminary unaudited results for the year ended 31 March 2008.

RESULTS SUMMARY

	Notes	2008	2007	Increase/ (Decrease)
Continuing operations
Revenue		£1,313.6m	£1,179.8m	11%
Operating profit	1	£86.7m	£67.7m	28%
Operating margin	1	6.6%	5.7%	0.9pp
Normalised profit before taxation	2	£91.9m	£74.1m	24%
Profit before taxation		£91.9m	£70.1m	31%
Normalised diluted EPS	3	66.7p	56.5p	18%
Cash flow from operating activities		£80.9m	£93.9m	(14)%
Year end staff numbers	4	17,278	15,869	9%
Total operations
Profit/(loss) for the year		£100.0m	£(57.3)m	-
Diluted earnings/(loss) per share		97.2p	(56.8)p	-
Dividend relating to the year		24.0p	20.0p	20%
Net funds		£168.4m	£199.1m	(15)%

SUMMARY

• Another good year's results with normalised diluted earnings per share up 18% to 66.7p.
• Operating profit increased by 28% and margins continue to improve as sustained growth in the Middle East and strong demand in other key markets helped increase revenue by 11%.
• Staff numbers increased by over 1,400 during the year to almost 17,300.
• Strong work in hand at 31 March representing 55% of budgeted revenue for 2008/09 (2007: 58%). Very good order intake post year-end and the Connect Plus consortium named as provisional preferred bidder for the 30-year M25 motorway widening DBFO contract.
• Disposal of Lambert Smith Hampton completed for a profit of £20.0m. Discontinued operations also include an £11.2m accounting gain arising from the treatment of Metronet deferred income.
• Continuing strong cash flow from operating activities of £80.9m (2007: £93.9m). £34.9m returned to shareholders via the share buyback programme with net funds at 31 March of £168.4m (2007: £199.1m).
• The Board is recommending a final dividend of 16.5p, making the total dividend for the year 24.0p (2007: 20.0p), an increase of 20%.

Notes:

1. Operating profit/margin before exceptional items.

2. Normalised profit before taxation is defined as profit before taxation less exceptional items and any profits or losses from disposals. This is considered to be a more representative measure of underlying trading.

3. Normalised diluted EPS is based on normalised profit after tax and allows for the dilutive effect of share options.

4. Staff numbers are measured on a full-time equivalent basis, including agency staff.

Well positioned to respond to the opportunities of a carbon critical economy

"The Group has had another successful year, with revenue up 11% and normalised diluted earnings per share up by 18%. We have made further good progress, demonstrated by the substantial increase in operating margins before exceptional costs from 5.7% to 6.6%. We believe that improvements in margin will continue.

Once again there was substantial growth in the Middle East and there were good performances from our Design and Engineering Solutions and Highways and Transportation segments in the UK. Faithful+Gould also performed well and margins improved substantially within our Rail segment, as anticipated. The Group’s cash generation remains very strong and we ended the year with net funds of £168.4m.

During the year the Board reviewed the strength of the Group's balance sheet and commenced a share buyback programme in November 2007 with the intention of returning up to £100m to shareholders. As at 31 March 2008 3.2m shares had been purchased at a total cost of £34.9m.

We start the new year in a good position with work in hand representing 55% of our budgeted revenue (2007: 58%) and are continuing to increase headcount. While there is of course uncertainty about the future direction of some of the economies in which we operate, we have not seen any sign of reduction in activity. Climate change is becoming a significant issue for many of our clients. We are working actively to raise awareness, develop tools and engage with clients to help them respond to the complex requirements of a carbon critical economy.

Our markets remain strong and as the Group continues to improve its services we are confident that the Group will achieve further good progress in the year ahead. We continue to review further opportunities to add to the depth and range of our technical skills and invest in the sustainable growth of the Group."

Ed Wallis	Keith Clarke
Chairman	Chief Executive

Enquiries

Atkins
Keith Clarke, Chief Executive	+ 44 (0) 1372 726140
Robert MacLeod, Group Finance Director	+ 44 (0) 1372 726140
Sara Lipscombe, Group Communications Director	+ 44 (0) 1372 726140
Smithfield
Lucinda Kemeny	+44 (0) 20 7360 4900

Notes to editors

1. Atkins

Atkins (www.atkinsglobal.com) plans, designs and enables the delivery of complex infrastructure and buildings for clients in the public and private sectors across the world. Atkins is the largest engineering consultancy in the UK and the world’s fifth largest international design firm (sources: New Civil Engineer Consultants File, 2008; Engineering News Record, 2007).

2. Attachments

Attached to this press release are the overview of the year, operating review, the unaudited consolidated income statement, consolidated statement of recognised income and expense, consolidated balance sheet, consolidated cash flow statement and notes to the preliminary unaudited financial information for the year.

3. Analyst Presentation

A presentation for analysts will be held today at JPMorgan Cazenove, 20 Moorgate, London EC2R 6DA at 8.30am. Dial-in details are available from Smithfield for those wishing to join the presentation by conference call. A webcast of the presentation will subsequently be available via the Company's website, www.atkinsglobal.com

4. Cautionary Statement

This press release and preliminary unaudited financial information (press release) have only been prepared for the shareholders of the Company, as a whole, and their sole purpose and use is to assist shareholders to exercise their governance rights. In particular, this press release has not been audited or otherwise independently verified. The Company and its directors and employees are not responsible for any other purpose or use, or to any other person, in relation to this press release.

This press release contains indications of likely future developments and other forward looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group’s results, strategy and prospects. Forward looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ. No obligation is assumed to update any forward looking statements, whether as a result of new information, future events or otherwise.

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