Atkins

Press Release

Half Year Results

26/11/2008

View the full Announcement as a PDF.

Professional services group WS Atkins plc (Atkins) today announces unaudited results for the six months ended 30 September 2008. The Group reports strong half year results, continued confidence for the remainder of this year and a secure position from which to respond to the challenges and opportunities further ahead.

FINANCIAL SUMMARY

		Six months to 30 Sept 2008	Six months to 30 Sept 2007	Increase / (Decrease)
Income statement - continuing operations
Revenue		£710.8m	£633.8m	12%
Operating profit		£48.2m	£40.1m	20%
Operating margin		6.8%	6.3%	0.5pp
Normalised profit before taxation	a	£47.5m	£42.7m	11%
Normalised profit after taxation	a	£36.3m	£31.7m	15%
Normalised diluted earnings per share	a	36.4p	30.8p	18%
Income statement - total
Profit for the period		£38.8m	£63.1m	(39)%
Diluted earnings per share		39.0p	61.3p	(36)%
Dividend	b	8.75p	7.50p	17%
People
Staff numbers at 30 September	c	18,322	16,909	8%
Average staff numbers	c	17,713	16,384	8%
Cash
Net funds	d	£164.5m	£128.3m	28%

Highlights

• Revenue up 12% to £710.8m reflecting continued growth in our principal markets
• Operating profit up 20% with margins up to 6.8% (2007: 6.3%)
• Normalised diluted earnings per share up by 18%
• Staff numbers up by over 1,000 since 31 March 2008 to 18,322, as planned
• Work in hand good with 87% of full year forecast revenue secured (2007: 85%)
• Robust cash generation in the period, with operating cash inflow of £38.2m (2007: outflow of £16.8m) and net funds as at 30 September 2008 of £164.5m
• Interim dividend of 8.75p per share
• We remain confident in the outlook for this year

Notes:

1. a. Normalised profit and earnings exclude profit on disposal of Joint Ventures (2008) and discontinued activities (2007).
   
2. b. Interim dividend declared for six months to 30 September.
   
3. c. Staff numbers are shown for continuing operations and on a full-time equivalent basis, including agency staff.
   
4. d. Net funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings.

Commenting on the results, Keith Clarke, Chief Executive of Atkins, said:

“These are strong results. Whilst we remain attuned to the wider economic situation, the range of our business and its strength in depth gives us continued confidence for the remainder of this year. Looking further ahead, our secure position allows us to continue to invest in Carbon Critical Design and our focus on excellence has positioned the Group to respond with confidence to the challenges and opportunities ahead.”

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 73604900

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, the largest multidisciplinary consultancy in Europe, and the world’s eighth largest global design firm (sources: New Civil Engineer Consultants File, 2008; Engineering News Record, 2008).

2. Attachments
Attached to this announcement are: the overview of the period, business review, finance review, statement of directors’ responsibilities, the unaudited: consolidated income statement, consolidated balance sheet, consolidated cash flow statement, consolidated statement of recognised income and expense and notes to the condensed consolidated half year financial information.

3. Analyst Presentation
A presentation for analysts will be held at 8:30am today at JPMorgan Cazenove, 20 Moorgate, London EC2R 6DA. 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 half year financial information has been prepared for the shareholders of the Company, as a whole, and its sole purpose and use is to assist shareholders to exercise their governance rights. In particular, this announcement 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 announcement.

The report 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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