Good results, despite currency headwinds, and a strong performance in the Middle East and Energy.

Design, engineering and project management consultancy WS Atkins plc (Atkins or the Group) today announces its preliminary results for the six months ended 30 September 2014.

Key Performance Indicators Note Six months to
30 Sept 2014 		Six months to
30 Sept 2013 		Increase/
(Decrease)
Income Statement
Revenue £831.4m £915.4m (9.2)%
Operating profit £44.6m £49.7m (10.3)%
Underlying operating profit 1 £53.0m £50.7m 4.5%
Operating margin 5.4% 5.4% -
Underlying operating margin 1 6.4% 5.5% 0.9pp
Profit before taxation £39.0m £54.8m (28.8)%
Underlying profit before taxation 2 £46.9m £44.7m 4.9%
Profit after taxation £31.2m £46.9m (33.5)%
Diluted earnings per share 30.9p 47.1p (34.4)%
Underlying diluted earnings per share 37.7p 35.9p 5.0%
Dividend 3 11.0p 10.5p 4.8%
People
Staff numbers at 30 September 4 17,898 17,407 2.8%
Average staff numbers 17,569 17,715 (0.8)%
Net funds 5 £155.3m £136.1m 14.1%
Work in hand 89.1% 87.7% 1.4pp
  • Revenue up 2% excluding effects of currency, acquisitions and disposals
  • Underlying profit before tax up 4.9%
  • Underlying operating margin of 6.4%, up 90 basis points year on year
  • Strong results in the Middle East and Energy
  • Mixed UK and improving North American performance
  • Strong financial position with net funds of £155.3m
  • Interim dividend increased by 4.8% to 11.0p
  • Outlook for the full year unchanged.
  • Underlying operating profit excludes amortisation of acquired intangibles. In addition, 2014 excludes exceptional transaction costs and impairment of goodwill.
  • Underlying profit before taxation additionally excludes net profit on disposal of businesses of £0.5m (2013: £11.1m).
  • Interim dividend declared for the six months to 30 September.
  • Staff numbers are shown on a full-time equivalent basis, including agency staff. The comparative for the period to 30 September 2013 also includes 169 UK highways services staff who left the business on 4 October 2013.
  • Net funds comprise cash and cash equivalents plus financial assets and loan notes receivable less borrowings.

"These are good half year results, despite currency headwinds, which demonstrate continued progress with our strategy. Of particular note is the strong performance of our Middle East region and our Energy business, which has recently completed two acquisitions in North America. The improvement in the Group's underlying operating margin reflects our continued focus on operational excellence, supported by the sale of a number of lower margin, non-core businesses as part of our portfolio optimisation. The Group's financial position remains strong, with our continued focus on cash generation across the business generating net funds at the end of September of around £155m. We have entered the second half with good work in hand, providing us with confidence for our outlook for the full year, which remains unchanged."

Enquiries

Atkins
Uwe Krueger, Chief executive officer + 44 (0) 20 7121 2000
Heath Drewett, Group finance director + 44 (0) 20 7121 2000
Kate Moy, Investor relations director + 44 (0) 20 7121 2000
Sara Lipscombe, Group communications director + 44 (0) 20 7121 2000
Smithfield
Alex Simmons + 44 (0) 20 7360 4900

Notes to editors

1. Atkins
Atkins (www.atkinsglobal.com) is one of the world's leading design, engineering and project management consultancies*, employing some 17,900 people across the UK, North America, Middle East, Asia Pacific and Europe. Our people's breadth and depth of expertise and drive to ask why has allowed us to plan, design and enable some of the world's most complex and time critical projects.

*15th largest global design firm (Engineering News-Record 2014) and the third largest multidisciplinary consultancy in Europe (Svensk Teknik och Design 2013).

2. Attachments
Attached to this announcement are: the overview of the period, business review, finance review, statement of directors' responsibilities, the unaudited: consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of cash flows, consolidated statement of changes in equity, notes to the condensed consolidated interim financial information and the independent auditor's review report.

3. Analyst Presentation
A presentation for analysts will be held at 8.30am today at The Lincoln Centre, 18 Lincolns Inn Fields, London, WC2A 3ED. Dial-in details are available from Smithfield for those wishing to join the presentation by conference call.

A live 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 the Company as a whole and its sole purpose and use is to assist shareholders to exercise their governance rights. The Company 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.

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