WS Atkins produces positive final results

The FTSE 250 firm posted underlying operating profit of £148.2m, up 10.5%, achieving its 8% margin target at the same time.

Underlying profit before tax was ahead of market expectations at £139m, up 14% on the prior year, with underlying diluted earnings per share ahead by 10.5% at 107.3p.

Atkins said that during the year, there were significant improvements in UK and Europe performance, and two major transportation project wins in North America underpinned workload into the new financial year.

It also saw “strong performance” in the Middle East driven by the Central Planning Office in Qatar and peak delivery on metro projects.

In the Asia Pacific region, Atkins was continuing to pursue outbound investment opportunities with selected Chinese contractors, it said.

Despite good growth in nuclear, power and renewables, the board said it remained a difficult year for energy.

“We are delighted to have achieved our 8% operating margin target against headwinds in certain markets,” said chairman Allan Cook.

“These are good results with strong growth in profitability and underlying diluted EPS.

“Overall, we remain confident for the year ahead despite continued uncertainty in some of our markets,” he added.

WS Atkins confirmed a full-year dividend of 39.5p, an improvement of 8.2% on last year.