19 May 2011 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 2011 to date.
We have witnessed slower trading than originally anticipated. The reduction in UK Government spending has resulted in a fall in secondment opportunities in our outsourcing business. This has been more acute following the finalisation of the Local Authorities' budgets in April.
The private property market in the UK is still challenging. Waterman has continued to win new commissions in the commercial, retail and residential sectors, but fee levels have remained under pressure. In our regional businesses outside London and the South East, the demand in our markets remains subdued whilst the timing of economic recovery is uncertain.
Overseas, new projects have commenced recently in the Middle East, Russia and Kazakhstan and we are delighted that there is a greater level of new enquiries for our services in these regions. In Australia, our public sector projects in healthcare and education continue to be delayed following the elections in 2010 and we have had to reduce our resource levels accordingly.
As a result of these issues, the Group confirms that it expects the financial results for the full year to be at the lower end of market expectations.
We remain profitable and focused on efficient cash management, although the legacy of under utilised office space and generally tighter working capital terms on projects are impacting operating cash flow. Waterman continues to have a strong balance sheet underpinned by significant net assets.
-ENDS-
Date: 19 May 2011
For further information please contact:
Waterman Group plc City Profile
Nick Taylor, Chief Executive Simon Courtenay
Alex Steele, Finance Director Sheena Khan
020-7928-7888 020-7448-3244
Web: www.watermangroup.com