Spie Batignolle in jeopardy as turnover generates just £1.3m profit

Despite Sir Peter Mason claiming that the shape of Amec is now "tidy", there is every sign that its French subsidiary Spie Batignolle will be jettisoned as an annual turnover of £500m has generated an operating profit of just £1.3m.

All the other elements in the Spie group are delivering good performances, but the inability of its traditional building wing to come up with acceptable margins points increasingly to a management buy-out. An Amey spokesman said: "It's involved in competitive bidding at low margins, the sort of work that many UK contractors have stepped away from."

At the other end of the scale, Amec is delighted with its attempts to keep pace with the globalisation approach of some major clients, particularly those in the pharmaceutical sector.

"We've done really well over the past 18 months," said Sir Peter. "An example would be the recent £45m contract for PharmaChem." He said that the decision to establish a consulting and design office in the heart of the pharmaceutical belt in eastern America has paid dividends.