WS Atkins to meet full year expectations

13th Apr 2016 07:57

(ShareCast News) - WS Atkins said it traded well through the fourth quarter and expects underlying results for the year to the end of March to be in line with views.The FTSE 250 engineering and project management consultancy said its UK and Europe business is expected to show good margin progress in the second half as it continues to benefit from the UK government's ongoing commitment to infrastructure spending.As far as North America is concerned, the business continues to operate within stable infrastructure markets.Atkins said certain parts of its business with a greater reliance on federal funding still face project award delays, but it expects to deliver an improved second half performance after the first half was hit by bidding costs on major projects. The group said it has been busy through the second half in the Middle East with work on the Riyadh metro and two lines of the Doha metro programme, in what it reckons will be a strong year for the region.Still, there remains some uncertainty about the timing and funding of some of its pipeline opportunities, particularly in property and government infrastructure.Atkins said its nuclear, power and renewables business continues to grow in line with its expectations, but the oil and gas division is mixed, with the most difficult trading conditions in North America somewhat offset by growth opportunities in the Middle East. Atkins said its financial position remains strong and it expects to report net funds of around £190m at 31 March, prior to the funding cost of the PP&T acquisition.