Half Year Results

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Half year results for the six months ended 30 September 2011
17 November 2011

Half Year Results for the six months ended 30 September 2011 PDF, 153KB View the full Announcement as a PDF.

Results for the year ended 31 March 2011 Webcast View the webcast

Solid half year performance in challenging markets

Design and engineering consultancy group WS Atkins plc (Atkins) today announces unaudited results for the six months ended 30 September 2011.

FINANCIAL SUMMARY


Key Performance Indicators

Six months
to
30 Sept
2011		 Six months
to
30 Sept
2010		 Increase/
(Decrease)
       
Income statement - on an underlying basis a      
Underlying operating profit   £51.5m £48.3m 6.6%
Underlying operating margin   6.1% 7.3% (1.2) pp
Underlying profit before taxation   £46.4m £41.7m 11.3%
Underlying diluted earnings per share   36.2 p 32.5 p 11.4%
         
Income statement - as reported        
Revenue   £842.9m £664.2m 26.9%
Operating profit   £49.3m £45.3m 8.8%
Operating margin   5.8% 6.8% (1.0) pp
Profit before taxation   £44.2m £38.7m 14.2%
Profit after taxation   £34.9m £29.4m 18.7%
Diluted earnings per share   34.8 p 29.5 p 18.0%
Dividend b 9.75 p 9.5 p 2.6%
Average staff numbers c 17,529 15,470 13.3%
Work in hand   88.2% 88.0% 0.2 pp
       
       
    30 Sept 2011 31 Mar 2011 Increase/
(Decrease)
       
Closing staff numbers c 17,710 17,522 1.1%
Net funds d £95.6m £123.3m (22.5)%

Notes:

  1. Underlying profit excludes transaction costs of the PBSJ acquisition in 2010 and amortisation of related intangible assets in 2011
  2. Interim dividend declared for the six months to 30 September
  3. Staff numbers are shown for continuing operations and on a full-time equivalent basis, including agency staff
  4. Net funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings

Highlights

  • Underlying operating profit up 7% on revenue up 27%, following North American acquisition
  • North American acquisition integration progressing well with consultancy business margin improved by 100bps
  • Diversification now delivering more than 50% of Group revenue from outside the UK segment
  • Good asset performance contributing to IAS19 post-tax pension deficit reduction of £43m to £206m
  • Interim dividend increased by 3%
  • Overall outlook for the full year unchanged

Commenting on the results, Uwe Krueger, chief executive, said:

“The Group has delivered solid half year results. Our strategic priorities to deliver shareholder value are to drive operational excellence, to optimise our portfolio, and to grow in attractive market sectors.

Notwithstanding the continuing challenges we face, with our diversified exposure to a range of end markets and geographies and good work in hand as we move into the second half, our overall outlook for the year remains unchanged.”

Enquiries

Atkins
Uwe Krueger,
Chief executive		 + 44 (0) 20 7121 2000
Heath Drewett,
Group finance director		 + 44 (0) 20 7121 2000
Sara Lipscombe,
Group communications director		 + 44 (0) 20 7121 2000
Smithfield
Alex Simmons + 44 (0) 20 7360 4900

Notes to editors

1. Atkins

Atkins (www.atkinsglobal.com) is one of the world's leading engineering and design consultancies*, employing some 17,700 people across the UK, North America, Middle East, Asia Pacific and Europe. It has the breadth and depth of expertise to plan, design and enable some of the world's most technically challenging and time critical infrastructure projects.

*It is the largest engineering consultancy in the UK (New Civil Engineer Consultants File 2011) and the 13th largest global design firm (Engineering News-Record 2011).

Atkins is the official engineering design services provider for the London 2012 Olympic and Paralympic Games.

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 statement of comprehensive income, consolidated balance sheet, consolidated statement of cash flows, consolidated statement of changes in equity, notes to the condensed consolidated interim financial information and the independent auditor’s review report.

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 interim financial information has been prepared only for the shareholders of Atkins as a whole and its sole purpose and use is to assist shareholders to exercise their governance rights. Atkins and its directors and employees are not responsible for any other purpose or use or to any other person in relation to this report.

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 materially from those currently anticipated. 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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