View - Atkins

Reviews 31
The performance of the Management
and Project Services segment this year
was mixed. The Faithful+Gould business,
which represents approximately 70%
of the segment, had a good year but the
Management Consultants business continued
to perform below our expectations.
Faithful+Gould, with principal operations
in the UK, USA and Asia, provides project
management and cost consultancy services
across a broad range of market sectors. All
three regions delivered strong performances
with both revenue and operating profit
ahead of expectations. The UK business
accounts for over 60% of revenue and the
North America and Asia Pacific businesses
grew by 11% and 43% respectively. During
the year many of our markets were strong,
including petrochemical driven by high oil
prices; public and regulated sectors where
there is continuing investment; and financial
services where we have a growing
reputation. We have a limited exposure
to the commercial property sector and,
overall, there has been no material
slowdown in work.
There remains a strong market for our
Management Consultants’ services and
we continue to provide programme
management services to support the
ongoing change programme at GCHQ,
where we are approaching the mid-point
of our five-year contract. Performance
in the business was impacted by a loss of
focus following a reorganisation undertaken
at the same time as the integration of
Mantix which was acquired in June 2006.
Management changes were made during
the year and profits were further depressed
by one-off costs incurred reducing overhead
and simplifying the management structure.
Outlook
Outlook for the segment as a whole is
good with work in hand at 31 March 2008
representing 48% of budgeted revenue
for 2008/09.
Faithful+Gould is a diverse business which
covers a wide range of markets. While the
UK is relatively mature, in the USA there
are further opportunities to deepen our
services, especially for the large programmes
commissioned by the Government, and in
the petrochemical and education sectors.
Our Management Consultants business
currently has a small share of a large
addressable market and there is potential
for a recovery from its current position
underpinned by existing framework
contracts with established clients.
Introduction Reviews Governance Financial Statements Investor Information
WS Atkins plc Annual Report 2008