Atkins (WS) PLC Announces Half Yearly Report

Half Year Financial Report for the Six Months Ended 30 September 2013; Good Results, Progress on Strategy and Full Year Outlook Slightly Ahead of Expectations

LONDON, UNITED KINGDOM–(Marketwired – Nov 14, 2013) – WS Atkins plc (“Atkins” or “the Group”) (LSE: ATK), the design, engineering and project management consultancy today announces its unaudited results for the six months ended 30 September 2013.

FINANCIAL SUMMARY

Key Performance                                                 

Indicators                                                 

                              

Six months to    Six months to     Increase /

30 Sept 2013      30 Sept 2012    (Decrease)

                     Restated

Income statement -on   a                                            

an underlying basis                         

Underlying operating                                                   

profit                           £ 50.7m           £ 45.9m          10.5%

Underlying operating                                                   

margin                               5.5%              5.6%      (0.1)pp

Underlying profit                                                      

before taxation                  £ 44.7m           £ 41.3m           8.2%

Underlying diluted                                                     

earnings per share                 35.9p             32.9p           9.1%

                                    

Income statement – as                            

reported                                                   

Revenue                          £ 915.4m          £ 815.7m          12.2%

Operating profit                  £ 49.7m           £ 44.8m          10.9%

Operating margin                      5.4%              5.5%      (0.1)pp

Profit before taxation            £ 54.8m           £ 47.8m          14.6%

Profit after taxation             £ 46.9m           £ 39.5m          18.7%

                              

Diluted earnings per                           

share                              47.1p             39.8p          18.3%

Dividend               b            10.5p             10.0p           5.0%

Average staff numbers  c           17,715            17,482           1.3%

Closing staff numbers  c           17,407            17,756          (2.0)%

                              

Work in hand                         87.7%             88.3%      (0.6)pp

Net funds              d         £ 136.1m           £ 83.7m          62.6%

Notes:

a. Excludes amortisation of acquired intangibles in both 2013 and 2012, and the net profit on disposal of the UK highways services business and the Peter Brown construction management business in North America in H1 2013 and RMPA in 2012
b. Interim dividend declared for the six months to 30 September
c. Staff numbers are shown on a full-time equivalent basis, including agency staff and 169 UK highways services staff (2012: 1,114) that left the business on 4 October 2013
d. Net funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings
e. Comparatives for the period to 30 September 2012 have been restated for the amendments to IAS19 Employee benefits.

Highlights

  • Underlying profit before tax up 8.2% to £ 44.7m on revenue 12.2% ahead
  • Strong UK performance with revenue up 16% and good growth in focus areas of Energy and Asia Pacific
  • Strategic progress with the sale of UK highways services and Peter Brown construction management disposal
  • Confluence project management business acquired on 4 October 2013
  • Improved operating cash performance with net funds at September 2013 of £ 136.1m
  • Financial position remains strong, with new five year revolving credit facility secured
  • Interim dividend increased by 5%
  • Full year outlook slightly ahead of expectations.

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

“The Group has made further progress on delivering our strategy, achieving good results with revenue up over 12% and underlying operating profit up over 10% on the same period last year.

In October, we were delighted to welcome 200 people from our Confluence acquisition which, augments our project management capabilities in Asia Pacific, the Middle East and India.

We have a strong balance sheet and cash collection in the period was encouraging. This, combined with our new banking facilities, gives us the ability to support growth, both organically and through targeted acquisitions.

Our work in hand position on entering the second half gives us confidence for the full year.”

Click on, or paste the following link into your web browser, to view the associated PDF document
http://www.rns-pdf.londonstockexchange.com/rns/9872S_1-2013-11-13.pdf

Enquiries

Atkins
Uwe Krueger
chief executive officer
+ 44 (0) 20 7121 2000

Heath Drewett
Group finance director
+ 44 (0) 20 7121 2000

Kate Moy
investor relations director
+ 44 (0) 20 7121 2000

Sara Lipscombe
Group communications director
+ 44 (0) 20 7121 2000

Smithfield
Alex Simmons
+ 44 (0) 20 7360 4900

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