Atkins’ turnover breaks through the £2bn mark

Ahead of its takeover next month by Canadian engineering giant SNC-Lavalin, Atkins has seen its turnover break through the £2bn mark in preliminary results for the year ended 31 March 2017 announced today.

Group turnover rose to £2,081m from £1,862m last time and pre-tax profit has increased to £164.6m from £139m.

Atkins’ performance in the UK and Europe remains strong with a 22% increase in operating profit to £90.4m on revenue which is down slightly at £911m due to a fall in rail signalling work.

Financial highlights from the results are as follows: -

  • Revenue up 11.8% to £2.08bn, up 4.3% on a constant currency basis
  • Underlying operating profit up 15.7%, 8.2% margin
  • Underlying profit before tax up 18.4% to £164.6m
  • Underlying diluted EPS up 15.8%, no full year dividend given recommended SNC-Lavalin offer
  • Strong balance sheet with net debt of £6.1m at 31 March 2017

The company’s strong UK and Europe performance has achieved a 9.9% operating margin. Atkins has seen significant growth in North America supported by major projects and its performance in Middle East is in line with expectations in challenging markets. The firm says it has made some encouraging progress in south east Asia and has experienced an improving performance in energy during the year following the PP&T nuclear acquisition which was completed in April 2016.

In a joint statement, Atkins chairman Allan Cook and chief executive Uwe Krueger said: “We delivered a strong set of results this year with underlying profit before tax improving by 18.4% to £164.6m. Our underlying operating margin continued to improve and we delivered revenue growth on a constant currency basis of 4.3%, underpinned by the acquisition of PP&T in 2016. We believe that the group is in a strong position to execute on its growth strategy going forward.” 

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