Engineer says market stable but re-sizes UK and Australian businesses

Engineer WSP has said it will write off 拢7.5m in restructuring costs in the UK and Australia as it continues to re-size its business for the current market.

In a trading update today, the firm said it had nevertheless won 拢60m of work in Qatar and Australia despite the 鈥渃hallenging鈥� trading environment.

The firm said it will report a 拢4m charge for restructuring its environmental and energy business in Australia. It said the money was 鈥渟ubstantially non-cash.鈥� In addition it said it had spent 拢3.5m in restructuring its UK business that was 鈥渓ikely to stay subdued with ongoing constraints on public sector spending, and a private sector where confidence and financing remain under pressure.鈥�

This is in addition to the 拢5.1m it has previously written off related to projects in Libya hit by the revolution and uprising there.

Overall the firm said the group鈥檚 order book had 鈥渞emained stable.鈥� A 拢22m mining contract in Australia, in joint venture with TWP, is its first major mining win since repositioning the business away from the property and retail sectors.

WSP also announced it has secured a new 拢152.5m finance facility, expiring in December 2015, with exactly the same covenants as it鈥檚 existing 拢150m finance facility, which had been due to expire in 2013.

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