WSP cuts workforce as profits drop

 
City A.M. Reporter
ENGINEERING consultancy WSP Group has reported a lower first-half adjusted pre-tax profit, hurt by a squeeze in the UK public sector spending, and said it had cut its workforce by four per cent.

Last month, the company had warned of posting lower 2011 results as the UK’s government cuts spending. The company said it expects to undertake further restructuring action, in addition to £2m incurred during the period, as the outlook for UK public sector works in roads and education remains uncertain.

WSP, which is involved in building bridges and motorways apart from property and infrastructure, said it also slashed its workforce by four per cent to 8,500 from 8,900.

January-June adjusted pre-tax profit was £14m, compared with £17m last year. Revenue was marginally down to £362.2m.

WSP shares, which have shed 11 per cent of their value after the company’s 2011 outlook, closed at 281.1p yesterday, valuing the company at £178.75m.