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Atkins at the top of its game

RESULTS: Engineering consultancy WS Atkins is a solid operator, but the valuation looks up with events
June 12, 2014

From its high-calibre projects - the likes of the Bahrain World Trade Center and Hoover Dam Bypass - to its solid financials, everything about engineering consultancy Atkins (ATK) shouts quality. As one would expect of such a quality outfit, the group is an excellent cash generator. Atkins clocked up £95.5m operating cash flow last year and that was after pumping £32m into the company's pension plan. Net funds rose by almost a third during the year.

IC TIP: Hold at 1313p

That solid performance has not come about by accident. Atkins is just over halfway through a big strategic push to sharpen its focus on those end markets that offer the best potential and, in the process, improve its growth and margin prospects. Businesses that didn't fit the mould have been ejected: construction management arm Peter Brown and UK highways services businesses were disposed during the year.

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