Join our community of smart investors

UK boosts WS Atkins

Investors who followed our buy advice have made a quick gain, and trading is still on track at engineering consultant WS Atkins.
February 6, 2013

Shares in engineering consultancy WS Atkins (ATK) were on the rise to 836p as the company reported solid trading in the core UK business, and a rising cash pile even though payment difficulties in the Middle East persist. In a sign of confidence in its UK operations, Atkins is taking on more staff to deal with extra rail and water utilities work, as well as new projects on the M25 motorway.

IC TIP: Buy at 836p

Getting paid for work in the Middle East, responsible for 10 per cent of revenue, is still proving difficult, and this could lead to write downs, but, so far, management have not taken any charges. The rest of the business is generating cash, with net cash almost doubling to around £110m.