Delays fail to stop Atkins surge

WS ATKINS has seen profits from its stake in the Metronet consortium running two-thirds of the London Underground surge in the past half-year despite delays in work to modernise stations.

The engineering consultant bagged £4.5m from Metronet in the six months to 30 September, up 13% on a year ago and contributing a major chunk of Atkins' total pre-tax profits for the first half - £34m.

The jump is likely to spark more fury from rail unions critical of the public-private partnership on the Tube, as well as passengers angry over the state of the network.

Just three months ago Metronet was blamed for the White City derailment earlier this year. Atkins chief executive Keith Clarke said that despite a wave of negative headlines, Metronet was achieving results, not least in reliability on the Central line and the renewal of 8,000 metres of track.

He conceded the amount of work faced by Metronet had meant delays in starting work on improving 'station ambience' but added that nearly 40 new such projects would soon be under way.

Clarke said: 'Without this work, the Tube would be in terminal decline.'

Atkins' interim profits of £34m were up 43% on a year ago. Turnover rose just £1.4m to £463.4m but operating margins improved from 4.5% to 5.8%.

The group is doubling the dividend to 4p and upping contributions to its pension plan by £10m a year.