17 May 2010 07:00
Waterman Group PLC Interim Management Statement
Waterman Group plc ("Waterman" or "the Group"), the international engineering and environmental consultant, today releases its Interim Management Statement for the period from 1st January 2010 to date.
Activity in the commercial property sector has continued to remain subdued. This has impacted on our anticipated levels of fee generating work. Our revenue in the third quarter of the financial year has been 7% less than the average of the quarterly periods in the first half.
The utilisation of our property teams has been impacted. We are anticipating that our profits for the year will be at the lower end of expectations prior to exceptional items.
In Ireland, we are monitoring closely the situation involving NAMA funding. At this stage, it is too early to determine whether or not funding will become available to finance the planning and construction of stalled developments. We remain focused on managing cash collection from our clients in all countries.
New appointments have continued to be won both in the UK and overseas during the last three months. However, margins have remained very competitive and this situation is expected to continue into the foreseeable future.
Rationalisation of the Group's office accommodation to consolidate our operations into a fewer number of regional locations in the UK is progressing well. This will continue through 2010.
The UK public sector provides a third of the Group's fee income with our main markets in highways, education, healthcare and rail. Following the recent UK election, the government's spending cuts have yet to be publicised and we remain focused on the opportunities which may materialise for our outsourcing business and the possibility that there may be a reduction in design consultancy commissions.
The ability of the new UK coalition government to be able to agree and instigate policy changes remains uncertain. As such, the impact on the demand for development in the UK private sector, which represents a further third of the Group's fee income, will be influenced by the performance of the government and the resulting confidence in the future stability of the economy.
The Board remains vigilant to changes in individual markets and the potential for increasing requirements for Waterman's range of services.
-ENDS-
Date: 17 May 2010
For further information please contact:
| Waterman Group plc | City Profile |
| Nick Taylor, Chief Executive | Simon Courtenay |
| Alex Steele, Finance Director | 020-7448-3244 |
| 020-7928-7888 |
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| Web: www.watermangroup.com |
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