FINANCIAL ANALYSIS

Section 1 - Cost & Financial Management

Abstract

WS Atkins Plc is one of the leading engineering consultancy businesses worldwide. The objective of this report is to evaluate the financial position and performance of Atkins based on its financial statements' analysis. The analysis of financial statement is performed by using financial ratios and horizontal as well as vertical analysis. The evaluation of financial statements of Atkins reveals that the profitability as well as stock valuation of Atkins is quite effective in the market; however, the management of operations (including liquidity and solvency) of the firm can be better and meet the level of industry (average).

Section 1 - Cost & Financial Management

Summary of Basic Information of WS Atkins Plc

WS Atkins Plc (ATK) is among the world's top engineering consultancy businesses. The firm is mainly deals in offering engineering, planning, design, project management, as well as consultancy services. WS Atkins Plc provides technically integrated as well as engineering design services to wide range of customers including private, public, and regulated sectors (www.atkinsglobal.com). In addition, Atkins provides other services as well including infrastructure planning, environmental consulting, engineering, management of construction, architecture, and management of programs. The areas in which it operates involve water, education, environment, defense, aerospace, and infrastructure designing as well as the chief activities in transport sectors. Atkins operates in variety of regions all around the world including Middle East, Europe, Asia Pacific, and North America. The company is headquartered in London, the UK (Atkins Global, 2013, n.d).

Recent developments of Atkins that hold importance include its Assystem Team Up for meeting the offshore wind prospects in France, Faithful + Gould Secures EDF energy's nuclear new build agreement, Galliford try joint venture secures 200 m waste water scheme, and some others. The company has gathered that nuclear is an attractive market for them, therefore Atkins is strongly placed in the United Kingdom for decommissioning, generation, and new build. Further, the firm has targeted an international expansion with efficient early success (Grant & Ball, 2012, p.23).

Key financials of WS Atkins Plc for the last year (2012) reveal strong position of the company, such as dividend of the firm increased by 5.2 percent, which represents the confidence of Board in the prospects of the business (Atkins Annual Report, 2012, p.4).

Even in the consistently challenging economic environment, WS Atkins Plc has been reporting effective financial results. The geographic presence and wide range of works that the company performs enable Atkins to consistently give the Group resilience at a time when several of their markets still face uncertainties. The company ended the year in line with estimations of enhancement in turnover and maintenance of underlying income before tax as they continue to balance their geographic footprint (Atkins Annual Report, 2012, p.7). One of the significant achievements during the year was the successful integration of company's PBSJ acquisition. This integration strategy together with operational efficiency measures of Atkins enabled the firm to accomplish efficient margin progression in their consultancy business (Atkins Annual Report, 2012, ...