What's new . . .
■ Results to beat forecasts
■ Margins improving in core business
■ Cash generation ahead of forecasts
Consultant engineer WS Atkins (ATK) has reported a positive outlook for its core UK business after announcing it will deliver a "significant proportion" of the £3bn Thames Water is forecast to spend upgrading the water network in London and the Thames Valley. Atkins will join with Costain and Veolia Water as part of a joint venture to upgrade the pipe, sewer and water treatment network in the region during the 2015-20 regulatory period.
In a trading update, Atkins said cash generation was some £20m ahead of expectations, to boost net cash to around £140m, up from £122m a year ago, despite ongoing payment issues in the Middle East. Moreover, with momentum being maintained in the UK business - accounting for 44 per cent of group revenues - and a better margin performance in the second half, Atkins now expects full-year results to be slightly ahead of expectations.
Although North American markets have been more difficult, this should be offset by strong growth in the Asia Pacific and Europe business, and an increasing pipeline of work in the group's energy operations.
