Federal spending in Iraq and US and PPP wins in Britain give AMEC positive start to year.
Federal spending in Iraq has helped Amec make a positive start to 2005. The project management and services company said that its Environmental Services business had been boosted by the strength of federal spending in Iraq and the US.
Amec told shareholders at today’s AGM that trading across the whole company was in line with expectations.
The Project Solutions business was buoyed by preferred bidder status on three major PPP projects: Docklands Light Railway Woolwich Arsenal extension; Colchester Hospital and South Lanarckshire Schools. Amec said that financial close on the £700m Incheon project in South Korea was also expected in the next few months.
AMEC increased orders in its oil and gas business by £500m since the end of 2005. It increased its order book in the sector from £2.4bn to £2.9bn.
In the Engineering and Technical Services arm Amec said that business in continental Europe had a good start to the year and remained on track to improve sales and overall margin in 2005.
In AMEC’s US industrial businesses the company predicted an improved performance in 2005.