(AMEC.L) AMEC PLC Buy/Sell

RNS Number : 6184C

17 November 2009

AMEC plc

17 November 2009

GRD acquisition receives Australian Federal Court approval

London, UK (17 November 2009) - AMEC, the international engineering and project management company, announces that GRD Limited (GRD) has received approval from the Federal Court of Australia for the acquisition by way of a scheme of arrangement following the shareholder approval obtained on 10 November 2009.

All necessary approvals have now been obtained and the scheme is effective.

The scheme will be implemented on 1 December 2009, when the scheme consideration of A$0.55 per GRD share will be paid to GRD shareholders.

Enquiries to:
AMEC plc: + 44 (0)20 7539 5800

Sue Scholes, Director of Communications Neil Jamieson, Director of Investor Relations

Notes to Editors:

AMEC plc

AMEC is a focused supplier of high-value consultancy, engineering and project management services to the world's energy, power and process industries. With annual revenues of over £2.6 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ over 21,000 people in more than 30 countries globally.

AMEC shares are traded on the London Stock Exchange where the company is listed in the Oil Equipment and Services sector (LSE: AMEC.L).

AMEC's Natural Resources business is a leading provider of total life-of-asset services to customers in the upstream and downstream oil and gas (including oil sands) and mining sectors, with a strong reputation for balancing global excellence with local delivery.

GRD

GRD Limited is an Australian engineering and development company.

GRD Minproc, a wholly owned subsidiary of GRD Limited, is a leading global engineering and project delivery business providing high value services and specialising in the design, procurement and construction of mineral resource and waste-to-resources projects. The company's process engineering and project record are internationally recognised with extensive experience gained in copper, gold, uranium, nickel and iron ore. Customers include BHP Billiton, Anglo American, Freeport McMoRan, Rio Tinto and Vale.

This information is provided by RNS The company news service from the London Stock Exchange

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LONDON, Nov 16 (Reuters) - AMEC plc:

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UK Stocks on the move
UK smallcaps UK smallcaps news

08:36GMT 12Nov2009-Amec falls after update

Shares in Amec fall as much as 4.7 percent after the energy services provider says trading is in line although its order book is down slightly from the half-year point.
Seymour Pierce moves to "Hold" from "Buy" on the stock, saying it is awaiting the next phase of the company's regeneration, for which a new plan is due to be announced on Dec 4.
"The low hanging fruit has nearly all been picked and we await the announcement of the new strategy for the next phase," the broker says.
Shares in the company have gained over 75 percent so far this year.
For more, please click on

Reuters messaging rm://victoria.bryan.thomsonreuters.com@reuters.net
08:28GMT 12Nov2009-FTSE small caps up 0.1 pct early on

The FTSE Small Cap Index gains 0.1 percent in opening trade, marginally underperforming London's blue chip index, which adds 0.2 percent, while the mid caps are also 0.1 percent higher.
South Africa's International Ferro Metals Ltd rises 4.4 percent after the ferrochrome producer almost doubles production in the quarter to Sept. 30 compared to the previous quarter, but says it remains cautious in the near term.
Kurawood shares lose more of their values after the company announces that it is seeking shareholder approval for the cancellation of its listing on AIM.

Reuters Messaging rm://david.brett.reuters.com@reuters.net
08:23GMT 12Nov2009-BA up on 'imminent' Iberia merger report

Shares in British Airways rise 2 percent in early trade after Britain's Sky News reports that BA and Spanish airline Iberia could announce a merger agreement as early as this week, citing unidentified sources.
The report says the two airlines have resolved sticking points including who would run the combined company.
"Willie Walsh (BA's Chief Executive) last week said that corporate governance progress has been made on the Iberia deal. We made the comment then that it sounds to us that this will happen over the coming weeks so I would not be surprised if it is imminent," says Davy stockbrokers analyst Stephen Furlong.
For more, click on

Reuters messaging rm://rhysl.jones.reuters.com@reuters.net

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RNS Number : 3731C
  AMEC PLC
  12 November 2009
   
    
    
    

AMEC plc INTERIM MANAGEMENT STATEMENT

* Trading in line with expectations

* Group EBITA margin approaching 8 per cent expected in FY2009

* Group order book £3.0 billion (October 2008: £2.5 billion; June 2009: £3.2 billion)

* FY2009 average net cash expected to be c.£700 million before GRD and any further acquisitions

Chief Executive Samir Brikho said:

"AMEC remains on track to deliver another year of improved performance in 2009 despite the ongoing  challenging external environment. 

"We expect to deliver a margin approaching 8 per cent this year and remain confident that with the benefits of our Operational Excellence programme, we will achieve our margin target of 8.5 per cent in 2010.

"We are delighted that the GRD acquisition has been approved by shareholders. GRD will enable  AMEC to enhance its Natural Resources business in Australia and South America, and  expand  into  new regions in Africa and further into Brazil."

Conference call

A telephone conference call for analysts and investors will be held at 9.30am today.

AMEC will present "Vision 2015" at a capital markets event at 10.30am on Friday, 4 December 2009. The event will be webcast live and may be accessed from our website at amec.com.

AMEC expects to announce preliminary results for the year ending 31 December 2009 on Thursday, 4 March 2010.

Forward looking statements

Any forward looking statements made in this document represent management's best judgement as to what may occur in the future. However, the group's actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the group. Such factors could cause the group's actual results for future periods to differ materially from those expressed in any forward looking statements made in this document.
      INTERIM MANAGEMENT STATEMENT 12 NOVEMBER 2009

Trading remains in line with expectations, with the group on track to deliver another year of improved performance despite the ongoing challenging external environment. 

The group expects to achieve an EBITA margin of approaching 8 per cent in 2009 and remains firmly on track to deliver its margin target of 8.5 per cent in 2010. This improvement in performance reflects the group's investment in the Operational Excellence programme, which is strengthening AMEC's competitive position and internal efficiency. 

Through Operational Excellence, investment in developing relationships with key customers has resulted in significant new contract awards during 2009. As a result, the group order book remains strong, standing at £3.0 billion at the end of October 2009 (October 2008: £2.5 billion; June 2009: £3.2 billion), with revenue fully covered for 2009. The order book is conservatively stated, and the group has a rich and diverse range of attractive prospects across the business.

Outlook 

Performance for 2009 is expected to remain in line with expectations.

The acquisition of GRD is expected to complete on 30 November 2009. AMEC expects to make further selective acquisitions, with the focus being on improving AMEC's competitive position through investment in people, capabilities, and geographic footprint. 

Segmental performance

Natural Resources

Natural Resources continues to deliver record performance despite a challenging external environment.

The Natural Resources order book remains strong, standing at £1.51 billion at of the end of October  (October 2008: £1.35 billion; 30 June 2009: £1.73 billion). The pipeline of future work in this division remains good and provides confidence going forwards.

The average number of employees in Natural Resources for the period January - October 2009  was 9,600, being in-line with the average for the first half of the year (January - October 2008: 10,800; January - June 2009: 9,608). 

Natural Resources expects the first half/second half split of revenue in 2009 before the acquisition of GRD to follow a similar pattern to the previous year.

Power and Process

Levels of activity in this division continue to reflect the change of management focus towards the provision of lower-risk services with higher value added. Older contracts that do not meet these criteria continue to progress to their completion dates as expected. Trading conditions in Power and Process end markets remain challenging, with UK industrial markets showing further weakness in the second half as customers defer capital spending.

The Power and Process order book at the end of October was £1.16 billion (October 2008: £0.90 billion; 30 June 2009: £1.27 billion) with the quality improving as the division continues its change of focus towards nuclear and clean energy markets. 

The average number of employees in Power and Process for the period January - October 2009  was 7,100 (January - October 2008: 7,978; January - June 2009: 7,413), with lower headcount reflecting changes of mix in the business.

Due to the expected winding down of older contracts and further weakness in UK industrial markets, Power and Process revenues in the second half of 2009 are expected to be broadly in line with the first six months of the year.

Earth and Environmental

Earth and Environmental continues to perform well despite the challenging external environment and a slower ramping up of government/stimulus spending than initially expected. 

The Earth and Environmental order book at the end of October was £0.27 billion (October 2008: £0.25 billion; 30 June 2009: £0.22 billion).

The average number of employees in Earth and Environmental for the period January - October 2009  was 4,300 (January - October 2008: 3,900; January - June 2009: 4,223), with the year-on-year increase reflecting acquisitions, particularly Geomatrix acquired in June 2008.

Earth and Environmental expects to see the normal underlying seasonal improvement in performance  in the second half of 2009, though growth will be tempered by weakness in certain end markets.  Spending associated with government/stimulus packages in the US and Canada is now beginning to increase, but is expected to have more impact on 2010 than 2009 trading.

Financial position and net cash

The group remains in an exceptionally strong financial position. Net cash at the end of October 2009  was c.£690 million as compared with £699 million at 30 June 2009 and £765 million at 31 December 2008.

Average net cash for 2009 is expected to be c.£700 million before the impact of GRD and  any further acquisitions.

      

Enquiries to:
 AMEC plc:                                      + 44 (0)20 7539 5800
 Samir Brikho, Chief Executive
 Ian McHoul, Chief Financial Officer
 Sue Scholes, Director of Communications
 Neil Jamieson, Director of Investor Relations

 Media:
 Brunswick Group LLP  - Mike Harrison           + 44 (0)20 7404 5959

Giles Croot

Notes to Editors:

AMEC plc

AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering, and project management services to the world's energy, power and process industries. With annual revenues of over £2.6 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. AMEC's Natural Resources, Power and Process and Earth and Environmental businesses employ over 21,000 people in more than 30 countries globally. 

www.amec.com

ENDS

This information is provided by RNS
The company news service from the London Stock Exchange
 
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