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Atkins turnover up but integration costs hit profit

Atkins turnover rose by 3 per cent but its operating profit was down last year amid its integration into SNC-Lavalin.

The consultancy reported turnover of £776.9m in the year to 31 December 2018, which it said was up by 3.3 per cent for a comparable period in 2017.

In the nine months to 31 December 2017 its turnover was £564.2m.

Results released this week are the first posted since the firm changed its reporting period to better align with other companies owned by SNC-Lavalin.

The Canadian firm acquired the Epsom-based company in July 2017.

The results also show operating profit was down to £37.7m, compared to £64.8m in the nine months to 31 December 2017.

Pre-tax profit was £52.3m in 2018 compared to £64.8m in the last nine months of 2017.

A balance of £13.5m on exceptional items was blamed for some of the losses.

Costs of £7.4m were said to relate to activities around integrating Atkins into its new parent company in during the year. In 2017 the same processes cost £8.9m.

The firm also spent £14.2m on exceptional pension costs relating to a legal requirement to recalculate payments.

Infrastructure work accounted for £187.5m of the firm’s turnover during the year, with aerospace, defence, security and technology generating £109.5m.

In May it was reported that SNC-Lavalin was considering selling Atkins amid an examination of its assets.

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