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News releases 2016

PDF, 972KB - opens in a new window View the Results for the year ended 31 March 2016 as a PDF.

View the webcast View the webcast

View the video interview with Uwe

PDF, 3MB - opens in a new window View the presentation as a PDF.

Strong performance, 8% margin target achieved and PP&T nuclear acquisition now completed

Design, engineering and project management consultancy WS Atkins plc (Atkins) today announces its preliminary results for the year ended 31 March 2016.

RESULTS SUMMARY

  Note 2016 2015 Change
Income Statement
Revenue   £1,861.9m £1,756.6m +6.0%
Operating profit £143.4m £118.5m +21.0%
Underlying operating profit 1 £148.2m £134.1m +10.5%
Operating margin 7.7% 6.7% +1.0pp
Underlying operating margin 2 8.0% 7.6% +0.4pp
Profit before tax £131.1m £106.7m +22.9%
Underlying profit before tax 3 £139.0m £121.9m +14.0%
Profit for the year after tax £103.4m £85.7m +20.7%
Diluted EPS 103.0p 85.4p +20.6%
Underlying diluted EPS 4 107.3p 97.1p +10.5%
Dividend   39.5p 36.5p +8.2%
People 5
Staff numbers 31 March   18,052 18,462 -2.2%
Average staff numbers 18,416 17,898 +2.9%
Cash        
Operating cash flow   £116.1m £133.9m -13.3%
Net funds 6 £191.7m £179.3m +6.9%
Work in hand 7 44% 51% -7pp

Financial highlights

  • Revenue up 6% to £1.86bn
  • Underlying operating profit up 10.5%, 8.0% margin target achieved
  • Underlying profit before tax of £139.0m, ahead of market expectations
  • Underlying diluted EPS up 10.5%, full year dividend up 8.2%
  • Strong balance sheet with net funds of £191.7m at 31 March 2016

Operational highlights

  • Significant improvement in UK and Europe performance
  • Two recent major transportation project wins in North America underpin workload into the new financial year
  • Strong performance in Middle East driven by the Central Planning Office in Qatar and peak delivery on metro projects
  • In Asia Pacific we continue to pursue outbound investment opportunities with selected Chinese contractors
  • Difficult year for Energy, although good growth in nuclear, power and renewables
  • PP&T nuclear acquisition completed in April 2016.

“We are delighted to have achieved our 8% operating margin target against headwinds in certain markets. These are good results with strong growth in profitability and underlying diluted EPS. Overall, we remain confident for the year ahead despite continued uncertainty in some of our markets.”

Allan Cook CBE
Chairman
Prof Dr Uwe Krueger
CEO

Notes:

  • Underlying operating profit is profit before exceptional items, amortisation of acquired intangibles, and deferred acquisition payments. In addition, 2015 excludes impairment of goodwill.
  • Underlying operating margin is the value of underlying operating profit expressed as a percentage of revenue
  • Underlying profit before tax additionally excludes net loss on disposal of businesses of £3.1m (2015: profit £0.4m).
  • Underlying diluted EPS is based on underlying profit after tax and allows for the dilutive effect of share options.
  • Staff numbers are shown on a full-time equivalent basis, including agency staff.
  • Net funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings.
  • Work in hand is the value of contracted and committed work as at 31 March that is scheduled for the following financial year, expressed as a percentage of budgeted revenue for the year.

Enquiries

Heath Drewett, Group finance director
Sara Lipscombe, Group communications director
Kate Moy, Investor relations director
+44 (0) 20 7121 2000
+44 (0) 20 7121 2000
+44 (0) 20 7121 2000

Notes to editors

1. Atkins
Atkins (www.atkinsglobal.com) is one of the world's most respected design, engineering and project management consultancies, employing over 18,000 people across the UK, North America, Middle East, Asia Pacific and Europe. We build long term trusted partnerships to create a world where lives are enriched through the implementation of our ideas. You can view Atkins’ recent projects on our website.

2. Attachments
Attached to this news release are the overview of the year, business review, financial review, table of principal risks and responsibilities, statement of going concern, statement of directors’ responsibilities, the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated cash flow statement, consolidated statement of changes in equity and notes to the preliminary financial information for the year.

3. Analyst Presentation
A presentation for analysts will be held today at the London Stock Exchange at 0830. Dial-in details are available from +44 (0) 1372 756077 for those wishing to join the presentation by conference call. A webcast of the presentation will be available via the Company's website, www.atkinsglobal.com.

4. Cautionary Statement
This announcement has been prepared for the shareholders of Atkins as a whole and its sole purpose and use is to assist shareholders to exercise their governance rights. In particular, this announcement has not been audited or otherwise independently verified and no warranty is given as to its accuracy or completeness (other than any such warranty which is mandatorily implied by statute). Atkins and its directors and employees are not responsible for any other purpose or use or to any other person in relation to this announcement and their responsibility to shareholders shall be limited to that which is imposed by statute.

This announcement contains indications of likely future developments and other forward looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group’s results, strategy and prospects. Forward looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently expected. No obligation is assumed to update any forward looking statements, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.