Buoyant end markets in the Middle East, Asia Pacific and - somewhat surprisingly - the energy sector were the principal drivers of growth for engineering consultancy WS Atkins (ATK). A series of one-off charges, including £6.9m in impairments on acquired goodwill, depressed reported profit for the March year-end, but this masked a healthy 15 per cent rise in underlying operating profit to £134m. The improved performance also means the group is now nudging its 8 per cent target rate for the underlying margin.
Operating profit for the group's Middle East business jumped by more than half, thanks to increased activity on major infrastructure projects, including new design work for the Doha Metro Gold Line, a key contract win during the first-half. Despite the low oil price, operating profit for the group's energy division grew by more than a third to £20.4m. The nuclear segment also provided cause for optimism. As part of a joint venture, the business was awarded a contract processing nuclear waste at Sellafield's £1.4bn Silos Direct Encapsulation Plant project.