Firm sees European profit collapse as market remains challenging
Strong performance in the UK has helped increase Atkins鈥� pre-tax profit by 15% in the six months to 30 September.
In a statement to the City, the firm reported a pre-tax profit of 拢54.8m up from 拢47.8m over the same period last year.
It also reported a 12% rise in revenue to 拢915m up from 拢816m over the period.
The UK business reported a 16% growth in revenue to 拢488m over the period. It also reported a 6% rise in operating profit to 拢26.2m, up from 拢24.8m.
Atkins said its rail business had performed particularly strongly and continued to have a good pipeline of projects.
This was held back slightly by 鈥渃hallenging market conditions鈥� in Europe, where operating profit fell 56% to 拢1.5m causing operating profit for the combined UK and European business to fall 1.8% to 拢27.7m.
Uwe Krueger, chief executive of Atkins, said: 鈥淲e 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.
鈥淥ur work in hand position on entering the second half gives us confidence for the full year.鈥�
Atkins said the North American market was 鈥渟table鈥� and operating profit increased 27% to 拢8.4m.
It added that there were opportunities for growth in the Asia Pacific region and the Middle East.
Over the period Atkins disposed of its UK highways business, which was bought by Skanska, and its Peter Brown construction management arm. Today, it signalled there may be further sales as it was still in the midst of an 鈥渙ngoing review of the businesses in our portfolio鈥� to focus the firm on 鈥渉igher growth, higher margin activities鈥�.
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