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Reviews 33
Asset Management had a good year with
results broadly in line with our expectations.
There is strong demand for our managing
agent service offering support to both
private and public sector clients with large
property portfolios. Our contract with
Barclays Bank has been extended to 2012
and in March 2008 we were awarded a
contract that will enable the Home Office to
improve the management and sustainability
of its property estate.
Outlook
Our Asset Management business remains
a small but profitable part of the Group.
Work in hand at 31 March 2008 represented
99% of budgeted revenue for 2008/09.
Discontinued operations
Lambert Smith Hampton
The disposal of Lambert Smith Hampton
(LSH) to the management team was
completed on 20 July 2007. Cash received
during the year was £45.5m with a further
£6.5m deferred in the form of loan notes.
The disposal resulted in a gain of £20m.
In the period to disposal, LSH recorded
revenue of £16.0m and a profit after tax
of £0.2m.
Metronet Enterprise
The Metronet infrastructure companies
entered PPP Administration on 18 July 2007
and Trans4m’s contracts were terminated
on 30 August 2007.
An exceptional accounting gain of £17.2m
has arisen on the accelerated release of
deferred income following Metronet
entering administration. This relates to the
unamortised balance of amounts received
by the Group in April 2003 in respect of bid
cost recoveries and project development
fees. The amount received was previously
being released to the income statement
over the 30-year life of the contract in
accordance with the Group’s policy in
relation to bid recovery fees on PPP/PFI
investments. Profit after tax relating to
discontinued Metronet activities was £11.2m.
On 27 May 2008, certain trade and assets
of the Metronet infrastructure companies
were transferred by the PPP Administrator to
two new entities established by Transport for
London. We retain our 25% shareholding in
Trans4m Limited and our 20% shareholding
in the residual groups headed by Metronet
Rail BCV Holdings Limited and Metronet
Rail SSL Holdings Limited, although these
entities are not currently trading.
Introduction Reviews Governance Financial Statements Investor Information
WS Atkins plc Annual Report 2008