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Atkins turnover breaks £2bn ahead of SNC-Lavalin takeover

Turnover at Atkins topped the £2bn mark in the firm’s final full-year results ahead of the takeover by Canadian giant SNC-Lavalin.

The company’s revenues for the year to 31 March 2017 increased 11 per cent from £1.9bn to £2.1bn, with underlying profit before tax up 18.4 per cent to £164.6m and operating margin climbing to 8.2 per cent.

Atkins said strong performances in the UK and Europe as well as significant growth in North America were behind the rise in turnover and profit.

The firm noted that the decision to leave the EU had so far failed to dent performance.

“To date, Brexit has had limited impact on our major markets,” it said. “We welcome the announcement of the government’s support for airport expansion at Heathrow and the capital development that this has unlocked.”

Revenue for UK and Europe dipped slightly from £943.6m the previous year to £911.1m in the latest results. However, profit rose from £73.8m to £90.4m on the back of an increased margin of 9.9 per cent.

At Heathrow, Atkins has secured a role as part of a joint team supporting the planning and early design phases of the third runway and expansion programme.

The firm has also won a contract for the design work on a major new college for Ealing and Hammersmith.

Atkin’s also cited the UK government’s industrial strategy as a key potential business driver, saying that the development of the Northern Powerhouse, the National Productivity Investment Fund and development in both London and Manchester gave the firm confidence in the UK market.

It said: “All of these significantly affect the opportunities available to our business.

“The rapid growth of digital technologies continues to reshape the infrastructure markets in areas such as intelligent mobility and digital asset management.”

In the US, the firm said the current political climate could lead to a slowdown in tenders for public projects, particularly transport.

“We monitor Congress’s activities for continued programme funding, particularly around transportation and highways, where delays would most significantly affect our workload,” Atkins said.

“While the political climate and federal budgetary challenges have caused spending delays in the last few years, the new US administration’s statements about infrastructure investment are encouraging.”  

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