Amec trading remains on track

Engineering giant says that while profits and cash flow generation will be second-half weighted, the group's outlook remains unchanged

Samir Brikho, Amec chief executive
Samir Brikho, Amec chief executive

Engineering group Amec, which has bases in Newcastle and North Shields, says it expects to see modest revenue growth this year.

However, its current mix of business will result in a slight reduction in group margins, compared to 2013.

In a trading update, Amec also said that, similar to last year, profits and cash flow generation will be second-half weighted.

Trading, however, remained in line with expectations and outlook remains unchanged, with the group’s financial position remaining strong.

In the trading update, the group added: “Amec continues to see less greenfield activity in some of the group’s key upstream oil and gas markets, which is partially offsetting the strong growth from Clean Energy and Middle Eastern Oil & Gas.

“Actual exchange rates year to date, and forecast average North American exchange rates for the remainder of 2014, continue to be less favourable than 2013.

“As stated previously, Amec expects this to translate into a year on year impact on revenues of circa £250m, and for trading profit of circa £25m for the full year.”

The group has also announced that, following the completion of its acquisition of Foster Wheeler, Kent Masters and Stephanie Newby will join its board as non-executive directors.

Masters is currently president and chief executive of Foster Wheeler, while Newby, who is the chief executive of Crimson Hexagon, has been a member of the Foster Wheeler board since 2004.

Amec chairman John Connolly said: “I look forward to Kent and Stephanie joining the Amec board when the acquisition of Foster Wheeler completes.

“They both bring more than 30 years’ business experience to our board, including their extensive knowledge of Foster Wheeler’s operations and employees.”

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