Against a grim backdrop, WS Atkins' figures were actually quite reassuring. While management has reduced staff numbers 6.5 per cent since November's peak, to 17,400, to deal with a slowdown in some end markets - such as UK design and build and the Middle East - most end markets have been reasonably resilient.
Indeed, the group has work in hand representing 54 per cent of its budgeted revenues for the current year. Atkins is benefiting from its involvement with the public sector and regulated industries, including significant work in highways and rail.
However, the coming year isn't expected to be easy and fears are mounting over what 2010 may bring for public sector spending. "We don't know what they're going to cut," says Geoff Allum, analyst at Charles Stanley, adding, "we just know that they are going to cut." Add to this the possibility for other, harder-pressed consultants to start competing hard on price to plug the hole left by losing private sector work, and the outlook is uncertain.
So broker WH Ireland expects pre-tax profits of £82.4m for 2010 and EPS of 63.7p (£100m and 82.3p, respectively, in 2009).
| WS ATKINS (ATK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 551p | MARKET VALUE: | £552m | |
| TOUCH: | 550-551p | 12-MONTH HIGH: | 1,094p | LOW: 415p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | 6 | |
| NET ASSET VALUE: | * | NET FUNDS: | £234m | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 1.16 | 53.0 | 39.3 | 12.0 |
| 2006 | 1.41 | 74.8 | 57.0 | 16.0 |
| 2007 | 1.18 | 70.1 | 54.4 | 20.0 |
| 2008 | 1.31 | 91.9 | 98.9 | 24.0 |
| 2009 | 1.49 | 103 | 86.1 | 26.0 |
| % change | +14 | +12 | -13 | +8 |
Ex-div:12 Aug Payment:25 Sep *Negative shareholders' equity | ||||
