黑洞社区

Consultant Atkins has reported a 29% fall in pre-tax profit, as its UK business shrank in the six months to the end of September.

In half-year results published this morning, the firm reported a pre-tax profit of 拢39m, down from 拢54.8m over the same period last year.

However, the firm reported a 5% rise in underlying pre-tax profit - which excluded amortization, goodwill impairments, profit from the sale of business and exceptional fees for a failed acquisition -  to 拢47m up from 拢45m.

The fees for a failed acquisition totalled 拢4.4m in 2014 and are thought to relate to its attempted purchase of Balfour Beatty鈥檚 consultancy arm Parsons Brinckerhoff, which was eventually bought by WSP earlier this year.

The firm also reported a fall in revenue to 拢831m, down from 拢915m. Though these figures were skewed by the sale of its highways business, which contributed 拢74m of revenue in the first half of 2013, as well as currency effects of 拢33.6m.

In the UK, Atkins reported a 13% fall in operating profit to 拢23m, down from 拢26m.

Revenue in the UK division also fell 18% to 拢399m, down from 拢488m though Atkins said the sale of its highways business accounted for much of this and the fall in revenue from continuing business was 4%.

Earlier this week .

The firm鈥檚 European business fell to an operating loss of 拢300,000, down from an operating profit of 拢1.5m. Its revenue also fell 20% to 拢29.8m down from 拢37m.

Atkins鈥� Middle East division had a strong six months reporting an increase in operating profit to 拢9m from 拢4m and an increase in revenue to 拢96m from 拢83m.

Uwe Krueger, chief executive of Atkins, said the results demonstrated 鈥渃ontinued progress with our strategy鈥�. 

He added: 鈥淥f particular note is the strong performance of our Middle East region and our energy business, which has recently completed two acquisitions in North America.

鈥淭he group鈥檚 financial position remains strong, with our continued focus on cash generation across the business generating net funds at the end of September of around 拢155m.  We have entered the second half with good work in hand, providing us with confidence for our outlook for the full year.鈥�

Speaking to 黑洞社区, Tonkin described the UK division鈥檚 performance as 鈥渕ixed鈥�. He added that five of the division鈥檚 seven business units were 鈥減erforming very well鈥�, but that its overall performance was dragged down by issues in its rail and aerospace divisions. 

In UK rail, Tonkin said the firm had been hit by 鈥渧ariations鈥� on long-term contracts, some of which were 鈥渧ery difficult鈥�. 

Atkins鈥� UK aerospace division has downsized by a third in response to one of its main customers, Airbus, shifting its focus to the production of planes rather than engineering them, Tonkin said.

Tonkin said 鈥渁ll but a handful鈥� of the aerospace staff had been redeployed elsewhere in the business. 

Tonkin said: 鈥淚t has hurt our figures but we鈥檝e made the best of a difficult situation鈥�.

He said the UK order book was 鈥渟trong鈥� going forward.

Tonkin denied the planned restructure of the firm鈥檚 UK division, announced this week, was a reaction to contraction in the business this year.

He said: 鈥淭hinking on the restructure started in January this year, before the Airbus and rail issues. This isn鈥檛 a reaction to that.鈥�

Tonkin also highlighted that Atkins was bringing in 鈥渇resh blood鈥� into the business, with just under 300 graduates and 90 apprentices hired so far this year. He said: 鈥淭hese are good signs in an industry where resources are tight.鈥�