Energy services-focused engineer predicts stronger performance for next half-year as revenue stays steady at 拢1.26bn

Engineering giant Amec has posted a 4% slide in first-half profit but said it expected a stronger performance in the next six months.

In a statement to the stock market, the firm, which is focused on the oil, gas and energy services industries, said pre-tax profit slipped to 拢88.4m in the six months to 30 June, down from 拢92.3m in the same period last year. Revenue stayed broadly flat at 拢1.26bn.

However, earnings before deduction of interest, tax and amortisation expenses leaped by 25% to 拢94.5m, up from 拢75.9m in 2008. The group's order book stood at 拢3.2bn, compared with 拢2.5bn in June last year and 拢3.3bn in December.

Chief executive Samir Brikho, who radically reshaped the business three years ago to focus on the energy sectors, said: 鈥淭hese results, achieved in a challenging trading environment, are further evidence of our improved competitive position and internal efficiency.

鈥淥ur investment in developing relationships with key customers continues to result in new contract awards and the quality of our backlog has never been better.鈥�

He added that the firm had 拢700m on the balance sheet and planned to make further acquisitions on top of the five made so far this year, which together cost 拢74m. It is also on track to meet its group margin target for 2010 of 8.5%, Brikho said.

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