Atkins records profit rise

The company's UK and Europe business saw a much improved second-half performance

Engineering and design consultancy Atkins has posted a 14.6% increase in underlying pre-tax profit to £121.9 million for the year ended 31 March 2015.

The UK-based company recorded a 0.4% rise in full-year revenue to £1.76 billion.

Atkins said: “We are pleased to report that the Group delivered another set of good results against a background of continued challenges in the broader macroeconomic environment.

“Our operational excellence programme is delivering efficiencies, particularly in North America. In addition, on 1 April 2015 we reorganised our UK business to enhance our client focus, improve efficiency and drive business performance. “

In the UK Atkins announced a 9% fall in revenue to £835.6 million, while operating profit rose 2% to £59.4 million. The company said a downturn in the aerospace market, rail contract negotiations and water and environment rightsizing impacted the first half performance. It added that a reorganisation of the UK to streamline business is expected to deliver year-on-year progress.

“Our United Kingdom and Europe business saw a much improved second half performance after a mixed first half. We faced a market downturn in our aerospace business in the year and our profitability was also affected by a number of contract variation negotiations in our UK rail business, which have now been largely resolved.

“By contrast, our highways and transportation and design and engineering businesses continued to benefit from the UK government’s focus on infrastructure investment. All sectors of our design and engineering business have strong pipelines of secured workload and opportunities. Our rail business remains busy, operating at a high level of staff utilisation, reflecting strong markets in the areas of signalling, electrification and station design. Our water and environment business returned to growth during the second half of the year.”

In the year, Atkins completed the acquisitions of Houston Offshore Engineering, Nuclear Safety Associates and Terramar.