Non-core exits hurts Amec's projects arm

While Amec's total turnover and pre-tax profit increased in the first half, its project solutions division suffered as a result of its planned exit from non-core construction activities.

Turnover from project solutions declined 18% to £489.3m in the six months to 30 June, while its profit margin slipped from 1.9% to 1.8%. The order book was steady at £1.1bn.

UK Construction Services had to make a provision for cost over-runs on a PPP road project.

Chief executive Sir Peter Mason said: "We do not expect this problem to recur, as we are nearing completion of all our PPP road projects.

"We are reviewing our future participation in PPP road projects and in any event will not take any further contracts unless terms are improved."

Group turnover was up 4.3% to nearly £2.3bn, while pre-tax profit increased 126% to £33.5m.

Amec is one of the few FTSE250 companies able to boast a pensions surplus.