AMEC PLC (AMEC.L), a UK-based provider of engineering and project management services, Thursday reported a 38% increase in pre-tax profit as revenues increased 9% from last year. The company also increased its margin outlook for fiscal 2010. Additionally, AMEC announced an interim dividend of 5.3 pence per share, representing a 15% increase.
AMEC reported net income of GBP 68.4 million or 20.6 pence per share for the first half of 2008 compared to GBP 51.3 million or 15.1 pence per share in the last-year period. Profit before income tax was GBP 92.3 million for the period, up 38% from GBP 66.9 million in the year-ago period. On a per-share basis, earnings from continuing operations increased 37% to 20.1 pence from 14.7 pence in the same period last year.
Adjusted profit from continuing operations for the period, excluding intangible amortization and exceptional items, increased 87% to GBP 90.4 million from GBP 48.4 million in the corresponding period last year. Adjusted earnings per share from continuing operations rose to 18.8 pence from 10.2 pence in the prior-year period.
Total revenues for the period increased 9% to GBP 1.26 billion from GBP 1.15 billion in the year-ago period. Revenues across the group's three core divisions increased 11% from last year.
Looking ahead to the full fiscal year, the company expects its average net cash position to be above GBP 600. The company increased its margin target for 2010 from to 8.5% from the previously issued outlook of 8%.
AMEC repurchased 3.20 million shares of its common stock during the six-month period.
AMEC revealed that its Finance Director Stuart Siddall stepped down from the company's board of directors, during the six-month period. In addition, former finance director of Scottish and Newcastle Ian McHoul joined AMEC as Chief Financial Officer, effective 8 September 2008.
The board of directors of AMEC declared an interim dividend of 5.3 pence per share, payable on 2 January 2009 to equity holders on the register at the close of business on 28 November 2008.
AMEC.L is currently trading at 835.00 pence on the London Stock Exchange, up 11.50 pence or 1.40%, on a volume of about 3.03 million shares.
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