Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Consultants' shares tumble amid profit fears

SHARES IN consultants plunged last week amid fears about their future profits.

Factors hitting consultants included a wide ranging stock market slide that saw billions of pounds wiped off share values last week.

Hardest hit was WS Atkins, whose shares plunged to a five year low. Last Friday Atkins shares were trading at 284p, compared with a high of 790p.

Observers pointed to uncertainty about the group's forthcoming results, after their publication was delayed from 26 June to 25 July.

Atkins' long term finance director Ric Piper has also announced that he is leaving the group. Atkins said this week that it would produce results in line with expectations.

Last week WSP shares were also trading at a 12 month low of 143p, down from a high of 444p. Earlier this month it had warned that difficult trading conditions would hit profits.

Stock market newcomer Mouchel's shares were trading at 132p, unchanged from their 26 June flotation price. Contractors involved in major outsourcing contracts were also hit.

By Friday Carillion's shares had plunged to 140p compared to a 12 month high of 231p, after it announced that it was to start accounting for the cost of negotiating privately financed infrastructure projects. It said the change would knock £12M off operating profits over the next two years.

Amey shares tumbled after it said that profits were suffering because of delays to the signing of the PPP deal to upgrade London's Underground. It is part of the Tubelines consortium.

Amey has also started accounting for bid costs on private finance projects. Its shares were trading at 94p last Thursday compared with a 12 month high of 414p.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.