Atkins

Press Release

Atkins announces impact of adoption of International Financial Reporting Standards

21/07/2005

As part of its preparation for the adoption of International Financial Reporting Standards (IFRS), WS Atkins plc (“Atkins” or “the Group”) is today holding a seminar for analysts on the anticipated impact of IFRS on its results for the year ended 31 March 2005.

Atkins has to date prepared its consolidated accounts in compliance with UK Generally Accepted Accounting Principles (UK GAAP). From 1 April 2005 the Group is required by European Directives to report its consolidated accounts under International Financial Reporting Standards (IFRS). The first full year reporting under IFRS will be the year ending 31 March 2006.

Highlights

Conversion to IFRS is an accounting change which should have no impact on the Group’s operational performance, risk profile or ability to generate cash. Financing arrangements and dividend payments are not expected to be affected as there are sufficient distributable reserves to enable payment of dividends to shareholders for the foreseeable future.

The effect of IFRS on the Group’s reported profits for the period ended 31 March 2005 is not significant. Net assets are, however, significantly affected by recognition of the deficit on the Group’s defined benefit pension schemes.

The standards in respect of PFI/PPP concessions have not been finalised and only draft interpretations are available. These have fundamental accounting implications for the Group’s interests in such concessions, particularly Metronet. The guidance is potentially subject to change following a consultation process which is currently ongoing. As a result, the Pro-forma indicative IFRS results given below are indicative only and further amendment to these figures will be necessary once the new accounting rules have been finalised in this area.

A summary of the effect of the restatement on the 2005 consolidated accounts, which are unaudited follows:

Results for period ended 31 March 2005 - unaudited

	UK GAAP £m	IFRS* £m	Pro-forma indicative IFRS** £m
Profit attributable to equity shareholders	38.6	38.9	40.9
Fully diluted earnings per share	38.4p	38.7p	40.7p
Net assets / (liabilities)	118.2	(44.9)	(51.1)
Cashflow from operations	82.6	88.1	88.1
Net funds	106.7	106.7	106.7

*	excluding the impact of IFRIC Drafts 12-14 on concession accounting which are subject to IFRIC adoption and EU endorsement, and IAS 32 and 39 which will be adopted with effect from 1 April 2005.
**	including the indicative impact of IFRIC Drafts 12-14 and IAS 32 and 39.

The primary changes to the Group’s reported financial information for the year ended 31 March 2005 following the adoption of IFRS are as a result of:

Recognising the deficit on defined benefit pension schemes on the balance sheet;
Ceasing to amortise goodwill; and
Changes to the segmental disclosures.

The Group has elected not to adopt the standards on Financial Instruments (IAS 32 and IAS 39) until 1 April 2005. These standards, however, have a significant impact upon the Group and particularly affect the results and net assets of the Group’s PFI/PPP concessions, particularly Metronet. Pro-forma indicative IFRS financial statements, which include the impact of IAS 32 and IAS 39 as if the Group had adopted them for the year ended 31 March 2005, are given.

The effect of the adoption of IFRS in respect of the Group’s consolidated accounts for the year ended 31 March 2005 is set out in detail in a report that can be downloaded from the company's website as from 3.00pm today at www.atkinsglobal.com.

21 July 2005

Enquiries:


Atkins
Robert MacLeod, Group Finance Director	+ 44 (0) 1372 726140

Brunswick
Mike Smith, Deborah Done	+44 (0) 20 7404 5959

Supplementary information:

1. Atkins

Atkins (www.atkinsglobal.com) plans, designs and enables the delivery of complex infrastructure and buildings for clients in the public and private sectors across the world. Atkins is the largest multi-disciplinary consultancy in Europe; the largest engineering consultancy in the UK; and the seventh largest design firm in the world (sources: New Civil Engineer – Consultants File 2005; Swedish Federation of Consultant Engineers & Architects – 2004; Engineering News – Record – 2004).

2. Analyst Presentation

View the Analyst presentation as a PDF.

View the full IFRS document as a PDF.

To view this document you will need Adobe Acrobat Reader. Download Adobe Acrobat Reader free of charge.