WS Atkins Share Discussion Threads

[salpara111] 23/3/2005 16:48

Well, that is enough pull back for me. as I dont have any meaningful cash at present to add. I have taken an upbet through my spread betting account at 648.
Looking for a retracement back to the 750 area over the next 3 months.

[salpara111] 17/3/2005 16:17

Hmm, I am begining to wonder if it is time to leave what has been a great ride for me. I guess any further advances from this level are going to prove to be harder work than what has gone before.

[ireland05] 15/3/2005 10:35

up we go until results.....

[cashflo] 14/3/2005 13:29

They're going to £10 - might not be such a linear path as the previous rise but I'd be happy buying at these levels.

[ireland05] 04/3/2005 15:07

I need to sell before 10 April 2005, so fingers crossed

[chris_topher1232003] 04/3/2005 13:59

Year end - 31/03/05 not sure on when these will be posted

[ireland05] 03/3/2005 16:41

when is the final results, anyone any idea??

[ireland05] 03/3/2005 16:41

when is the final results, anyone any idea??

[tonyleongson] 01/3/2005 12:42

Just taking a breather before the next leg up.

From IC

22 December 2004

WS ATKINS (ATK)

BUY

689p - engineering consultant - Atkins has made a good recovery since a disastrous profit warning back in October 2002 pushed the group to the brink of bankruptcy and claimed management scalps. This hasn't gone unnoticed in the City and Atkins' shares have risen twelvefold since then.

So, with the urgent problems now resolved, the group's priority now is to rebuild profit margins. So far, it's been successful - they have surged. From 4.5 per cent a year ago, the operating margin on continuing operations has now hit 5.8 per cent. This is in line with what Atkins managed before 2002's profit warning. This margin recovery has come as the group has rationalised its portfolio of contracts and has cut costs on loss-making ones. Management is also being more choosy about the work it is taking on.

Atkins' finance director, Robert MacLeod, says there's further margin growth to come, but he won't be drawn as to how much. City analysts expect the group to be making margins of over 6 per cent next year and, within two years, the margin could top 7 per cent.

Meanwhile, work should keep pouring in as the markets that the group operates in are strong. For one thing, the construction sector is buoyant. This is important for Atkins, as many of its services are construction-related, such as architecture. Other areas of importance, such as transport infrastructure spending, are also growing strongly. Spending on UK road and rail renewals and upgrades is forecast to grow from current levels of around £6bn a year to over £7bn a year by the end of the decade.

In the group's first-half results, issued earlier this month, the only disappointment was that Atkins' business with London Underground isn't performing as well as had been hoped. Although the Metronet joint venture, in which Atkins is an investor, is performing well - first-half profits rose £1.8m to £5.5m - extra work hasn't come through as hoped.

Under the deal's structure, Atkins is supposed to provide extra services, such as station modernisations. But it has taken longer than expected for this work to appear. Consequently, profits from such activities slumped from £2.5m in the first half of last year to £300,000 this year. However, the work hasn't disappeared forever - London Underground's tatty stations must be improved eventually, so this blip should be made good.

Atkins also has a balance sheet stuffed with cash - £76m at the end of September - and the ability to generate lots more. After nearly going bust a couple of years back, when debts rose above £100m, such strong cash generation is a healthy development.

In fact, cash generation is so strong that the group's management seems to be struggling to know what to do with it. While some acquisitions look likely, as Atkins wants to offer more services to its clients, such deals will not be big. Instead, management will use the group's funds to hike the dividend. It was doubled in the first half to 4p and further strong growth seems likely. Cash is also plugging the pension deficit, which currently stands at an ugly £69m.

We have twice recommended buying shares in Atkins - in August 2003 and then in January this year. However, the picture is different now from the way it looked back then. Atkins is no longer a business in recovery mode. It's now in a growth phase with no sign that the pace is letting up. Yet the shares still look inexpensive, trading on 15 times underlying earnings for the year to next March, and around 13 times for the year to March 2006.

Given the group's impressive performance so far, we think it is only right to recommend buying Atkins' shares once again. Buy.

[last-in] 01/3/2005 12:37

preferred bidder (so good Prospect for a contract win) status announced so price goes down 1.4% ?

LONDON (AFX) - Costain Group PLC said its joint venture with WS Atkins PLC
and Galliford Try PLC has been selected by United Utilities PLC as preferred
bidder for a 5-year 900 mln stg infrastructure contract.
United Utilities is awarding contracts for designing the upgrades and
improvements to its water and wastewater treatment works as well as major sewer
overflow schemes, Costain said.
Costain's consortium will be responsible for the detailed design work and
the construction and commissioning phase of these projects.
A final decision on the contract award is expected by the end of March,
Costain added.

[ireland05] 23/2/2005 11:30

when is Atkins final results out, anyone got any idea?

[sugasuga] 22/2/2005 15:01

Tony

Judging by the lack of postings on this BB, you must be boring eyeryone to death with all these staff notices from the Atkins internal intranet!!