FINANCIAL ANALYSIS

Section 2 - Cost & Financial Management

Abstract

WS Atkins Plc's one of the strong competitors is AMEC Plc, which deals is similar in size and caters similar markets. This report evaluates the financial statements of AMEC and compares it with Atkins as well as industry in order to provide assessment and recommendations for the Atkins Plc. The report highlighted that overall financial position and performance of AMEC is better than Atkins, such as AMEC has been managing a better capital structure (debt & equity) than Atkins. Overall analysis reveals some recommendations for Atkins to improve its financial performance that are covered in this report.

Section 2 - Cost & Financial Management

Summary of Basic Information of AMEC Plc

AMEC Plc is one of the major competitors of WS Atkins Plc. AMEC Plc offers engineering, consultancy, as well as project management services to various sectors and markets all around the world, same as WS Atkins Plc. The sectors or markets AMEC Plc serve include oil and gas, clean energy, mining, and infrastructure and environment markets. The company basically businesses in 3 main divisions: Power & Process, Natural Resources, and Infrastructure & Environment. AMEC Plc was founded in 1848 and is headquartered in London, the United Kingdom. The firm has its operations mainly in the United Kingdom and the United States of America, as well as other worldwide areas including the Middle East and Australia. Key clients of AMEC plc are Exxon Mobil, BP, Sellafield, INPEX, and the US Air Force (Yahoo, 2013, n.d).

Similar to Atkins Plc, AMEC Plc provides engineering services like engineering design, facilities engineering, and front end services design. Additionally, the firm also provides project management services including advice and support, construction management, safety, health, sustainability, quality and environmental support and directions, as well as commissioning and start-up services. Consultancy services offered by AMEC Plc comprise of business, technical, environmental, commercial, and engineering consultancy services. Moreover, construction services are also provided by AMEC Plc, similar to Atkins Plc, such as new build, supply chain, decommissioning, sustainability engineering, and some others (Bloomberg Businessweek, 2013, n.d).

Stocks of AMEC plc are traded on the London Stock Exchange where the corporation is listed in the Oil Equipment and Services area (LSE: AMEC) and is incorporated as an associate of the FTSE 100 index. One of the primary event held in last year (2012) that impacted on company's financial statements is the acquisition of Unidel in May 2012, as well as the acquisition of Serco Group plc's nuclear Technical Services (TS) business in June 2012 by AMEC plc (www.insideview.com). AMEC plc reported annual revenues of around 4.2 billion and with this amount of revenue the company designs, maintains, and delivers complex as well as strategic assets and employs around 29,000 workers in over 40 nations all around the world (AMEC, 2013, n.d).

Evaluation of AMEC's Financial Statements & Its Comparison with WS Atkins & the Industry

This part of the report provides an in-depth analysis of AMEC's financial statements in comparison with WS Atkins and the ...