Keith Clarke is adamant he will not sell stake in troubled tube consortium
Keith Clarke, the chief executive of Atkins, was adamant this week that he was not considering selling its stake in Tube consortium Metronet, despite its effect on the firm鈥檚 bottom line.
Clarke said Atkins was 鈥渋n it for the long term鈥� and that the firm had performed well overall in the six months to
30 September, despite Atkins making a 拢400,000 loss on its Metronet stake in that period. Atkins has also made a 拢4m provision for the late delivery of station upgrades.
Clarke would not disclose how much profit Atkins was expecting to make from its
25-year contract but noted that it was not as much as anticipated in April 2003, when the contract was signed. 鈥淚n the original plan, profit would have been going up and up at this point,鈥� he said.
He said Metronet, in which Balfour Beatty is also a stakeholder, was unlikely to make a profit by the end of the financial year. However, he added: 鈥淭his is not a one-year 鈥榗an I sell the equity?鈥� game. This is long term. I鈥檇 never rule out any possibility, but we鈥檙e saying that this is the best way to get shareholder value.鈥�
Clarke said Atkins鈥� major shareholders, including Schroders, Standard Life and Legal & General, were understanding about the problems with Metronet. 鈥淎lthough they would like us to make money, of course.鈥�
Atkins has attributed its problems with Metronet to the worse-than-expected state of London Underground鈥檚 infrastructure and problems on the District Line caused by the summer heat.
Clarke would not disclose when he expected Metronet to become profitable but in a presentation to analysts he said it would have to be successful by September 2010.
In response to press reports last week in which Metronet was quoted as saying that Clarke would be replaced, although not imminently, as chairman, he said: 鈥淭he strategy was always that the owners of Metronet would support the management
we put in for somewhere between one and two years.鈥�
Overall, in the six months to 30 September 2006, pre-tax profit at Atkins rose almost 10% to 拢31m. Turnover increased 17% to 拢606m. Atkins does not break down results for Faithful + Gould, its QS arm, but Clarke said it was 鈥減erforming well鈥�.
