Press Release
Metronet issues request for PPP Administration
18/07/2007
WS Atkins plc ("Atkins" and "the Group") notes that today the Boards of Metronet Rail BCV Limited and Metronet Rail SSL Limited have announced that they have asked the Mayor of London to ask the court to appoint a PPP Administrator for both companies.
This news, while not unexpected, is clearly disappointing. Atkins priority is to ensure an orderly and effective transition, working with the PPP Administrator to protect the safe and smooth operation of the Underground.
This announcement will have no balance sheet impact on Atkins as the Group had already written down the carrying value of its investment in Metronet Rail BCV Limited and Metronet Rail SSL Limited to £Nil and included an exceptional loss of £30 million in relation to its supply chain contracts in its results for the year ended 31 March 2007. These contracts remain in place, pending future developments. Atkins remains committed to the creation of a world-class underground system for London. It will continue to provide services to London Underground as required and requested under the new ownership structure which succeeds Metronet.
In Atkins' preliminary results statement on 26 June 2007, the directors stated that the demand for Atkins' services in its core markets is strong and that Atkins is confident that the Group will continue to achieve further progress in the year ahead.
ENDS
Enquiries:
| Smithfield: | |
| John Antcliffe | +44 (0)207 903 0665 |
| Lucinda Kemeny | +44 (0)207 903 0658 |
| Atkins: | |
| Sara Lipscombe, Group Communications Director | +44 (0)1372 726140 |
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