AMEC plc Interim Management Statement

03/04/2013


AMEC plc Interim Management Statement

Group performance

Group performance has been in line with expectations in the first three months of 2013.

Order intake remains good and includes a mix of new contract awards, broadened scope changes to existing contracts and negotiated work, providing good visibility for 2013 and beyond. The order book was £3.7 billion at 31 March (December 2012: £3.6 billion; March 2012: £3.7 billion).

The group continues to see investment in its end markets and demand for its services, particularly from customers in the conventional oil and gas sector, offsetting softening in the oil sands and mining markets. Activity in the North Sea and Gulf of Mexico remains particularly strong, with work continuing on a number of projects. 

The average number of employees was 28,770 in the period January to March 2013 (January to March 2012: 27,242 employees). 

 Financial position and net cash

AMEC remains in a strong financial position with net cash at the end of March 2013 of approximately £25 million (December 2012: £99 million; March 2012: £468 million). 

Outlook

The outlook is unchanged from that provided at the full year results.  AMEC continues to expect low-to-mid single digit revenue growth for the group on an underlying basis, excluding procurement - with a gradual improvement in group margins in 2013.

The balance sheet remains strong and provides a robust platform for further growth. The group continues to evaluate further acquisition opportunities.

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