WS Atkins H1 Profit Declines; Shares Up

11/25/2009 6:13 AM ET

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WS Atkins 6-month Profit Down - Quick Facts

(RTTNews) - Engineering consultancy WS Atkins Plc (ATK.L: News ) Wednesday reported a decrease in profit for the first half of fiscal 2010, reflecting lower revenues and higher finance costs. However, the company remains confident about the second half of the year. Atkins shares are currently trading up more than 10% on the LSE.

For the first-half period, the UK-based company's profit before taxation was GBP 43.5 million compared with GBP 50 million in the prior-year period. Excluding pension curtailment gain in 2009 and profit on sale of joint venture in 2008, pre-tax profit would have been GBP 40.9 million versus GBP 47.5 million in the 2009-year period.

Profit attributable to shareholders declined 13% to GBP 33.9 million from GBP 38.8 million in the same period last year. On a per share basis, earnings declined 12% to 34.3 pence from 39 pence in the previous year. Excluding pension curtailment gain and profit on sale of joint venture, earnings per share would have been 31.6 pence versus 36.4 pence in the comparable period prior year.

Revenues for the six-month period slipped 1% to GBP 701.2 million from GBP 710.8 million in the first half of fiscal 2009, with average staff numbers down 4%.

On a segmental basis, revenues from design and engineering solutions were GBP 197.1 million versus GBP 202.6 million last year, rail revenues fell to GBP 93.9 million from GBP 99.6 million, and revenues from Middle East and India were GBP 78.6 million compared to GBP 82 million a year ago.

Revenues from management and project services declined to GBP 103.3 million from GBP 113.3 million, asset management revenues were GBP 25.8 million versus GBP 26.6 million in the previous year. However, revenues from highways and transportation increased to GBP 143.4 million from GBP 138 million in the year-ago period, and revenues from China and Europe were GBP 65.4 million compared with GBP 53.0 million in the prior year.

During the six-month period, administrative expenses were GBP 211.1 million versus GBP 219 million in the 2009-year period. Finance costs for the first half rose to GBP 9.3 million from GBP 4.5 million a year earlier.

Atkins said it has reduced headcount to 16,235 at September 30, 2009 from 18,017 at March 31, 2009.

The board declared an interim dividend of 9.25 pence per share, up 6% from the prior year, payable on January 29, 2010 to all shareholders on the register on December 18, 2009.

ATK is currently trading on the London Stock Exchange at 618.00 pence up 59.50 pence or 10.65% on a volume of 461,990 shares. In the past 52-week period, the shares have been trading in a range of 415 pence to 747.50 pence.