Pre-Close Trading Update
WS Atkins plc ("Atkins" or "the Group"), the design and engineering consultancy group, today provides an update on trading for the year ended 31 March 2012 in advance of its preliminary results announcement on 14 June 2012.
Overall, the Group has traded well through its fourth quarter and expects to report results for the year ended 31 March 2012 in line with market expectations.
The UK region has ended the year well and, as anticipated, saw modest growth in underlying headcount in the second half of the year. Despite the previously announced delay in contract awards in the UK rail signalling business, the second half operating margin for the UK segment is expected to show progress on that reported in the first six months of the year.
While the North American consultancy business has seen its previously reported slow start to the second half continue in the fourth quarter, a year on year margin improvement is still anticipated for this business.
The Group's operations in the Middle East and Energy have continued to enjoy strong market conditions and have ended the year trading in line with our expectations.
Atkins' financial position remains strong. The Group's increased focus on working capital management will contribute to it reporting net funds of around £120 million as at 31 March 2012.
Outlook
Atkins' geographic and sector diversification continues to provide resilience which will be reflected in the reported results for the year ended 31 March 2012. The Group is progressing well with its three strategic themes, as outlined at the time of its half year results in November 2011, positioning it to deliver further earnings growth in the year ahead.
