AMEC plc (AMEC.L) said Thursday, in an Interim Management Statement, that it is on track to deliver another year of improved performance in 2009, despite difficult external environment. The company also said it expects to make further selective acquisitions.
The UK-based company, with a market cap of about GBP 2.76 billion, is engaged in consultancy, engineering and project management services to energy, power and process industries. Preliminary results for the year ending 31 December 2009 are expected on March 4, 2010.
AMEC expects to attain an EBITA margin of 8% in 2009, reflecting on its Operational Excellence programme. Looking ahead, the company said that it is firmly on track to deliver its margin target of 8.5% in 2010.
The group noted that its order book remained strong at GBP 3.0 billion at the end of October, higher than last year's GBP 2.5 billion, with revenue fully covered for 2009, thanks to new contract awards and investment in developing relationships with key customers.
Natural Resources arm's order book stood at GBP 1.51 billion on 31 October, higher than end of comparable period earlier year, yet down from end of first half of 2009. Average number of employees in Natural Resources for the period January to October 2009 were in line with the average for the first half of the year.
Power and Process segment order book at the end of October was better than last year October-end, but declined compared to half-year ended 30 June. Employees in January to October period were lesser than the end of same period last year and at 30 June, driven by changes in business mix. Power and Process end markets remain challenging, with UK industrial markets showing further weakness in the second half as customers defer capital spending. Power and Process revenues in the second half of 2009 are expected to be broadly in line with the first six months of the year.
Earth and Environmental division had strong order book and increased headcount at the end of October. The group predicts normal underlying seasonal improvement in performance in the second half of 2009, though growth will be tempered by weakness in certain end markets.
In the statement, the company also said that acquisition of GRD is expected to complete on 30 November.
AMEC.L is currently trading down 3.81% at 833 pence, on the LSE.
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