Atkins reveals profit rise

Consultancy reports 7.3% growth in pre-tax profit and 2.6% increase in revenue

Atkins chief executive Uwe Kruegar

Engineering and design consultancy Atkins has reported a 7.3% rise in pre-tax profit to £106.4 million for the year ended 31 March 2014.

The company, which completed the sale of its UK highways services and construction management businesses in the year, reported a 2.6% increase in revenue to £1.75 billion for the 12-month period.

The company said: “Our UK and Europe region performed well during the year, driven primarily by the UK where we experienced good momentum in our core markets. The use of our global design centres in India to deliver work for our UK business also enhanced our performance and increased our competitiveness.

“We achieved particularly good volumes in the retained highways consultancy and rail businesses. In addition we benefited from a contract gain share as a consequence of our M25 design project exceeding its delivery targets, in part offset by outstanding variation negotiations on certain rail signalling contracts.

“The UK water and environment business had a busy first half with peak volumes associated with AMP5 (refers to the five year planning period for 2010-2015) and feasibility studies on phase one of the HS2 high speed rail project. We were pleased to see opportunities re-emerging for our design and engineering business from the UK education market and infrastructure work associated with nuclear new-build projects. We remain well positioned in our defence business following the change in the UK government’s approach to reforming its defence procurement activities.”

The company said the outlook for its UK and European business is stable despite a slowdown in its aerospace business.

Atkins was recently selected as a preferred bidder on a new contract with Sellafield in a joint venture with Areva and Mace. It is also close to achieving regulatory approval for the acquisition of US engineering and technical services company Nuclear Safety Associates.