Waterman (WTM) kept its "add" rating from Evolution Securities, with a 60p target price. The broker believes that the engineering consultancy has managed to turn itself around over the last six months, with revenue per head up and reduced costs. Full year revenues of 74.1 million pounds were ahead of Evolution's estimate of 72 million pounds, with adjusted pre-tax profits of 1.2 million pounds in-line with forecasts. Shares in Waterman rose 0.5p to 32.5p.
4 Oct '11
Outlook The Group has returned to profitability over the financial year during a period when our markets have remained constrained by lack of significant investment by our clients. Historically, three quarters of the Group's revenue was generated from the property sector. This reliance on the property sector has created difficult trading conditions over the last three years as the sector suffered a severe and abrupt downturn. However, over the financial year we have seen a significant improvement in enquiries and secured projects in the commercial and residential markets and more recently we have witnessed renewed interest from clients involved in retail developments throughout the UK. We are continuing to diversify and have recruited a new Director of Technology Services in Australia following new commissions in the telecommunications sector. In addition, in June this year we appointed a new Managing Director of our Building Services business from within our existing team. He will be particularly focused on promoting our carbon and energy management credentials to clients. While there remains financial uncertainty both in the global economy and in the rate of recovery in many markets, I believe we are well positioned and have a highly regarded brand and employees which will enable us to succeed and take advantage of appropriate opportunities. On behalf of the Board, I would like to express our appreciation to all our clients and staff for their continued support. Roger Fidgen Chairman
4 Oct '11
Waterman returns to the black Date: Tuesday 04 Oct 2011 LONDON (ShareCast) - Engineering and environmental consultancy Waterman enjoyed a return to profit for the year ended 30 June 2011 as it continues to reposition the business in core markets and countries. Profit before tax for the year was £0.6m compared to a pre-tax loss of £5m. Adjusted profit rose to £1.2m from £1.1m before. Revenue fell to £74.1m from £83.2m. Chief executive Nick Taylor said these were robust results in a market, which is still constrained by lack of significant investment. "The implementation of our three point strategy will allow the business to sustain the current market environment. We have made significant progress towards repositioning the business in core markets and countries, which going forward will provide revenue growth," the engineer said in a company statement. The group introduced a three throng strategy including reducing costs, returning each business unit to profitability and delivering revenue growth. Net debt increased to £8.6m from £6.4m in 2010. The dividend payment has been slashed to 0.2p from 1.8p the year before "to allow for the continued investment in the business, resources and future workload." Taylor noted an improved performance in the second half with increased profitability and reduction in net debt following re-structuring.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.