Our strategy is to focus on revenue growth and, selectively, to increase our geographic footprint and capabilities through targeted international expansion organically and by acquisition.
Half year results for the six months ended 30 September 2016
Good overall results, with underlying profit before tax up 14.0%, full year outlook unchanged.
Design, engineering and project management consultancy WS Atkins plc (Atkins or the Group) today announces its unaudited results for the six months ended 30 September 2016.
||Six months to
30 Sept 2016
|Six months to
30 Sept 2015
|Income Statement - unaudited
|Underlying operating profit
|Underlying operating margin
|Underlying profit before tax
|Underlying profit after tax
|Underlying diluted EPS
|Statutory operating profit
|Statutory operating margin
|Statutory profit before tax
|Statutory diluted EPS
|Staff numbers at 30 September
|Average staff numbers
|Work in hand
- Revenue up 10.0% to £994.7m, up 4.0% on a constant currency basis
- Underlying operating profit up 10.7%, underlying constant currency operating profit up 4.3%
- Underlying profit before tax of £63.6m, up 14%
- Underlying diluted EPS up 12.6%, interim dividend up 6.8%
- Net borrowings of £90.3m at September 2016, following acquisition of EnergySolutions’ project, products and technology (PP&T) business
- Significant increase in UK and Europe profit, up 32.2% supported by strong markets and improved operational delivery
- Good first half performance in North America, underpinned by two major transportation projects
- Middle East impacted by more difficult transportation and infrastructure markets and demobilisation of metro projects; good wins in Dubai property market
- Energy business continues to face challenging market conditions in oil and gas, North American oil and gas impairment of £23.3m in the period
- First major PP&T project in US (DUF6) secured and integration progressing well
Commenting on the results, Uwe Krueger, chief executive officer, said:
"Despite challenges in some markets, we have delivered good underlying profitability and the near term outlook in our UK and North American businesses is particularly positive. We are confident that our focus on differentiation in nuclear, digital innovation and advisory will deliver further growth over the longer term. Our outlook for the full year is unchanged."
- Underlying operating profit is profit before exceptional items (£2.8m), impairment of goodwill (£18.5m), amortisation and impairment of acquired intangibles (£18.7m), and deferred acquisition payments (£1.8m).
- Underlying operating margin is the value of underlying operating profit expressed as a percentage of revenue.
- Underlying profit before tax additionally excludes profit on disposal of business of £0.6m (2015: loss £3.0m).
- Underlying diluted EPS is based on underlying profit after tax and allows for the dilutive effect of share options.
- Interim dividend declared for the six months to 30 September.
- Staff numbers are shown on a full-time equivalent basis, including agency staff.
- Net debt/funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings.
- Work in hand is the value of revenue to date plus contracted and committed work at 30 September that is scheduled for the remainder of the financial year, expressed as a percentage of the forecast revenue for the year.
- Constant currency is used as a comparative measure to remove the impact of foreign exchange.