Atkins

Press Release

Results for the year ended 31 March 2007

26/06/2007

Professional services group WS Atkins plc (Atkins) today announced preliminary unaudited results for the year ended 31 March 2007.

RESULTS SUMMARY

	2007	2006
Revenue (Group and share of Joint Ventures)	£1,639.9m	£1,411.0m
Revenue	£1,263.6m	£1,052.5m
Operating profit¹	£76.6m	£62.9m
Operating margin¹	6.1%	6.0%
Exceptional items before taxation	£(121.3)m	-
Normalised profit before taxation²	£81.7m	£68.4m
(Loss)/profit before taxation	£(39.6)m	£74.8m
Normalised diluted EPS³	61.5p	50.1p
Diluted (loss)/earnings per share	(56.8)p	55.9p
Dividend relating to the year	20.0p	16.0p
Cash flow from operating activities	£106.1m	£111.7m
Net funds	£199.1m	£176.6m
Year end headcount (including agency staff)	16,824	14,907

SUMMARY

Good results from underlying businesses with revenue growth of 20% and operating profit¹ up 22%.
Significant revenue growth in Design and Engineering Solutions (18%), Highways and Transportation (16%), Rail (35%), and Middle East and China (61%).
Headcount (including agency staff) increased by over 1,900 during the year to more than 16,800.
Strong work in hand representing 58% of budgeted revenue for 2007/08 (2006: 62%).
Results adversely impacted by an exceptional loss of £121.3m (£120.1m after tax) on the Metronet Enterprise⁴, including an impairment write-down to reduce the carrying value of the Group’s investment in the Metronet PPP companies to £nil, and provisions for supply chain losses.
Metronet announced its intention to invite the Arbiter to conduct an Extraordinary Review on Metronet BCV in July and Metronet SSL (later in the year). Ongoing negotiations with Metronet banks are required to ensure adequate funding until conclusion of Extraordinary Review.
Continuing strong cash flow from operating activities of £106.1m (2006: £111.7m) with closing net funds of £199.1m (2006: £176.6m).
Disposal of LSH to its management team for £46.5m (together with earn-out potential for a further £10m) announced today.
The Board is recommending a final dividend of 14.0p, making the total dividend for the year 20.0p (2006: 16.0p), an increase of 25%.

Notes:

Operating profit/margin before exceptional items.
Normalised profit before taxation is defined as profit before taxation and exceptional items and any profits or losses from disposals. This is considered to be a more representative measure of underlying trading.
Normalised diluted EPS is defined as diluted EPS before exceptional items and any profits or losses from disposals.
The Metronet Enterprise comprises the Group’s interest in the Metronet and Trans4m Joint Ventures and the related Atkins supply chain.

“The Group performed well last year, with revenue up 20% and normalised profit before taxation up by 19%. This result was driven by substantial growth in the Middle East; good performance from our Design and Engineering Solutions and Highways and Transportation segments; and the recovery in the workload from our Rail segment.

The Group’s results, however, were adversely impacted by an exceptional loss of £121.3m (£120.1m after tax) in relation to the Metronet Enterprise. This loss includes an impairment write-down which reduces the carrying value of the Group’s investment in Metronet to £nil.

On 21 June 2007, Metronet announced its intention to invite the Arbiter to conduct an Extraordinary Review on Metronet BCV in July and for Metronet SSL later in the year. Negotiations are ongoing with Metronet’s banks to ensure that it has adequate funding until the completion of the Extraordinary Review.

Atkins is committed to working with Metronet, its banks and other stakeholders to ensure that it can continue through to the outcome of the Extraordinary Review.

We start the new year in a very good position with work in hand representing 58% of our budgeted revenue (2006: 62%). The demand for our services in our key markets is strong and we are confident that the Group will continue to achieve further progress in the year ahead.”

Ed Wallis	Keith Clarke
Chairman	Chief Executive

Enquiries

Atkins
Keith Clarke, Chief Executive	+ 44 (0) 1372 726140
Robert MacLeod, Group Finance Director	+ 44 (0) 1372 726140

Brunswick
Nick Claydon, Jonathan Rhodes	+44 (0) 20 7404 5959

Notes to Editors

1. Atkins

Atkins (www.atkinsglobal.com) plans, designs and enables the delivery of complex capital programmes for clients in the public and private sectors across the globe. Atkins is the largest multi-disciplinary consultancy in Europe; the largest engineering consultancy in the UK; and the world’s fourth largest design firm (sources: New Civil Engineer Consultants File, 2006).

2. Attachments

Attached to this press release are the Overview of the year, Operating review, the unaudited consolidated income statement, consolidated statement of recognised income and expense, consolidated balance sheet, consolidated cash flow statement and notes to the preliminary unaudited financial information for the year.

3. Analyst Presentation

A presentation for analysts will be held today at JP Morgan Cazenove, 20 Moorgate, London EC2R 6DA at 8.30am hours. The presentation will also be available live via conference call. Dial-in details are available from Brunswick on +44 (0)20 7396 3577. A webcast of the presentation will be available via the Company's website from mid-afternoon www.atkinsglobal.com.

4. Cautionary Statement

This press release has only been prepared for the shareholders of the Company, as a whole, and its sole purpose and use is to assist shareholders to exercise their governance rights. In particular, this press release has not been audited or otherwise independently verified. The Company and its directors and employees are not responsible for any other purpose or use or to any other person in relation to this press release.

This press release contains indications of likely future developments and other forward looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group’s results, strategy and prospects. Forward looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ. No obligation is assumed to update any forward looking statements, whether as a result of new information, future events or otherwise.

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