Amec will complete its transformation into an energy business by the end of October, the company said this week.
Amec, which last month agreed to sell most of its building and regeneration businesses to Morgan Sindall, said in a trading update that bidding for what remained was “in the final round”. It is understood that several private equity firms are interested in its PPP arm.
Amec said it was increasing profit expectations for this year by £10m, although forecasts for 2008 remain unchanged. The restructuring programme is expected to deliver benefits in the second half of this year; costs of up to £10m will appear on the balance sheet for the first half. The company said its net cash position for this year was expected to exceed £300m.
It said it had settled disputes on the Jormag and Thelwall Viaduct projects and was confident these would be covered by previous financial provisions.
The company reported a loss of £109m in results for 2006 after a £90m writedown, which included hits to the built environment businesses and litigation charges.
Samir Brikho, Amec’s chief executive, said: “Trading in our core energy and process businesses continues to be strong and we’re now benefiting from our STEP Change [restructuring] programme earlier than planned. “
Amec will announce interim results for the six months ending 30 June at the start of September.
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