黑洞社区

Atkins inched up profit margins closer to its 8% target in full-year results for the year to March 2015, on the back of profit growth in its UK, Middle East, North America and Asia Pacific divisions.

The UK-based engineering giant said its underlying operating margin increased to 7.6% over the period, up from 6.7% the previous year.

However, pre-tax profit for the period fell 6.6% to 拢106.7m, down from 拢114.2m. Atkins said the fall was attributable to 拢15.6m of exceptional costs incurred over the year - including 拢4.4m for a failed acquisition, likely to be for its failed bid for Parsons Brinckerhoff - and this did not reflect the underlying performance of the group.

Underlying pre-tax profit - which stripped out these exceptional costs - rose 14.6% to 拢121.9m, up from 拢106.4m. Atkins鈥� overall revenue remained unchanged at 拢1.8bn.

In the UK, the firm posted a 2% rise in operating profit to 拢59.4m, up from 拢58.1m, while revenue declined 9% to 拢835.6m, down from 拢922m. The UK division鈥檚 operating margin increased to 7.1%, up from 6.3%.

Atkins said the UK business enjoyed an 鈥渋mproved鈥� second half of trading, although over the year the division was negatively impacted by a downturn in the aerospace market and contract negotiation issues in rail.

Meanwhile, the UK highways and transportation and design and engineering businesses were boosted by increased UK government infrastructure investment, while subsidiary consultant Faithful & Gould 鈥減erformed well with continued signs of recovery in the market鈥�.

Atkins chief executive Uwe Krueger (pictured) said: 鈥淲e have delivered good results with solid growth in profitability and excellent cash performance. Margin progression has continued towards our 8% goal and the outlook remains positive.鈥�

Speaking to 黑洞社区, Nick Roberts, Atkins chief executive for the UK and Europe, said: 鈥淲e鈥檝e shown real resilience in the face of a competitive market in the UK, and I鈥檓 optimistic for the year ahead.鈥�

Despite construction industry concerns arising this week over indications the government is cooling on infrastructure investment - after George Osborne used his Mansion House speech to say he will legislate to prevent future governments running capital and current spending deficits, and reports emerged the government will not respond to the Davies Commission findings on airport capacity until the end of this year - Roberts said he was not 鈥減erturbed鈥� by the developments.

He did however call on the government to make a 鈥渟wift decision鈥� on boosting airport capacity once the Davies Commission publishes its report, expected later this month.