Chief Executive Uwe Krueger said the company's focus on technology and innovation was helping it win new contracts in areas such as rail and nuclear power, and in regions including the Middle East.

"The dividend increase, of more than 8 percent, really shows how confident we are," he said on Thursday.

Shares in the group hit a new high of 1,530 pence, and were trading up 1.4 percent at 1,513 pence at 0808 GMT.

Analyst Joe Brent at Liberum, who has a "buy" rating on the stock, said the results were ahead of his forecasts.

"The Middle East is the star and the operating margin increased from 6.7 percent to 7.6 percent," he said.

Atkins reported underlying pretax profit of 121.9 million pounds ($188.6 million), up from 106.4 million pounds a year earlier, and beating a forecast of 117.8 million pounds, according to a Thomson Reuters poll of nine analysts.

It increased its total dividend by 8.1 percent to 36.5 pence a share.

($1 = 0.6463 pounds)

(Reporting by Paul Sandle; Editing by Kate Holton and Mark Potter)