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Atkins performing strongly despite turbulent market

Atkins said it has continued to perform strongly following the good performance in the first half, and the year to date results have been in line with our expectations.

In a trading update for the period from 1 October 2009, Atkins said market conditions remained turbulent during the period and the group continued to respond in adjusting staffing levels in line with prospective demand and delivering cost saving efficiencies.

The performance of Atkins’ highways and transportation business remains strong, benefiting from the UK government’s fiscal stimulus programme.

The rail segment has continued to deliver good results – it has successfully completed the first major commissioning of the Newport re-signalling project during the period.

The Middle East business has traded well during the period despite the ongoing liquidity issues that emerged in the region in November.

With just under 2,000 people now working in the Middle East, Atkins is focused on extending both its geographic reach and sector skills.

The group’s Faithful+Gould business continues to perform in line with expectations in a highly competitive marketplace.

Atkins’ financial position remains good, with ongoing focus on working capital delivering a strong cash flow performance in the period.

Following the expiry during the period of a letter of credit issued in respect of the Metronet enterprise, the group has released a related provision and a one-off, non-cash credit of £25 million will be reflected in the group’s full year income statement.

The trading update said: “Whilst the economic environment remains challenging, our good performance to date underpins our confidence for the full year.

“We continue to take the necessary steps to navigate successfully in difficult market conditions and our early action has positioned the business well for the future.”