Outlook positive for WS Atkins at half year mark

LONDON (ShareCast) - (ShareCast News) - WS Atkins (LSE: ATK.L - news) said the outlook for the full year looks positive. The design, engineering and project management consultancy group released a trading statement on Thursday ahead of the end of the first half of its financial year.

It (Other OTC: ITGL - news) said overall first half performance is expected to be in line with expectations.

Its UK transportation and water, ground and environment businesses are expected to deliver an improved first half performance following a challenging trading period last year.

The transition to a new simplified UK organisational structure had also been completed and is expected to deliver both revenue and margin improvements over time.

It said the North American market is stable, but first half performance has been impacted by investment in bidding activity as the business works to drive top line growth.

Atkins also expected to deliver growth in the Middle East market through a steady pipeline of work, but there had been some client caution regarding infrastructure and property commitments.

The group's Asia Pacific market is also expected to produce results in line with expectations, despite a previously highlighted slowdown in mainland China.

Its nuclear, power and renewables businesses have also traded well through the first half, but the oil and gas business is experiencing pricing pressure and is feeling the impact of the deferral and cancellation of some projects.

Productivity continued to be monitored closely, and the company had already reduced its headcount by around 125 in its UK and North American oil and gas operations.

Full results for the six months to 30 September 2015 will be announced on 12 November.