Order book stable at AMEC as full-year guidance maintained

Consultancy, engineering and project management group AMEC has said that first-quarter trading was in line with its expectations and a strong order book has given it good visibility for 2013 and beyond.

Guidance for low-to-mid single-digit underlying revenue growth (excluding procurement) this year remains unchanged.

The firm, which works across the oil and gas, mining, energy, environment and infrastructure markets, said that the order book was £3.7bn at March 31st, up slightly from £3.6bn at the end of 2012 but in line with the same period last year.

Order intake remains good and includes a mix of new contract awards, broadened scope changes to existing contracts and negotiated work, AMEC said.

The group said it continues to see demand for its services and investment in its end markets, particularly from customers in the conventional oil and gas sector, though some "softening" has been noted in the oil sands and mining markets.

Net cash at the end of the quarter was £25m, well below the £99m registering in December and the £468m seen at the end of March last year, but the company said that it still remains in a strong financial position.

"AMEC has performed in line with expectations in the first three months of the year," said Chief Executive Samir Brikho.

"The acquisitions made in 2012 are integrating well and the pipeline of further acquisition opportunities remains good. We remain on track to achieve our targeted EPS [earnings per share] of greater than 100p ahead of 2015."

Adjusted diluted EPS were 80.4p in 2012, up 14% from 70.5p the year before.