WS Atkins H1 statutory profit down, underlying profit up

17th Nov 2016 08:02

(ShareCast News) - FTSE 250 engineering consultancy WS Atkins reported a 14% rise in first-half underlying pre-tax profit but a drop in statutory profit, as it maintained its outlook for the year.In the six months to the end of September, underlying pre-tax profit rose to £63.6m from £55.8m on revenue of £994.7m, up 10% from the previous year.However, statutory pre-tax profit fell 58.4% to £22.4m due to a £18.5m impairment of goodwill and a £18.7m charge from amortisation and impairment of acquired intangibles.In the UK and Europe, profit was up 32% thanks to strong markets and improved operational delivery, while North American experienced a good first half, underpinned by two major transport projects.The Middle East, meanwhile, was hit by more difficult transportation and infrastructure markets and demobilisation of metro projects although the company did have good wins in the Dubai property market.WS Atkins said it continues to face challenges in some of its oil and gas markets and it has reviewed and impaired the carrying value of goodwill and intangible assets in its North America oil and gas business by £23.3m.Still, the green light on the Hinkley Point C new build nuclear project is an encouraging signal of commitment from the UK government to building crucial energy infrastructure, the group said.Chief executive officer Uwe Krueger 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." At 0900 GMT, WS Atkins shares were down 2.4% to 1,620p.