WS Atkins Q1 trading in line, expresses confidence over full year

In a trading update for 1 April to date, Atkins said it has made a good start to the new financial year, securing some strategically important projects in cyber security and defence, together with major frameworks in transportation and water.

The company said that at the beginning of April, it took another step to simplify its organisational structure, combining its design and engineering and water, ground and environment business units into a new infrastructure division, which will enhance its ability to cross-sell its capabilities.

Atkins said that while the Brexit vote has created some uncertainty in the market, it has not seen any impact to date.

“Benefiting from a very diversified business in the region, we continue to monitor activity levels closely across our various markets.”

The North American business has also enjoyed a good start to the yea as the company has begun to mobilise resources on the Purple Line light rail project in Maryland. In addition, it is working on project NEON, its transport project for the Nevada Department of Transportation.

Atkins said it does not expect a significant impact from the five-year Transportation Bill until after the presidential election in November, but work on these two major projects will help it to deliver good volume growth and margin progression this year.

The FTSE 250 group said the trading environment for its oil and gas businesses in the UK and North America remains very challenging and it has taken further steps to respond. However, the Middle East oil and gas business has continued to trade well in the period.

“We welcome the final investment decision on Hinkley Point last week, and look forward to a positive outcome from the government's review in the autumn.”

At 0812 BST, shares were down 0.3% to 1,391p.