Construction and engineering services group Amec today revealed plans to sell off its built environment businesses in a bid to improve performance
In a trading update released this morning, chief executive officer Samir Brikho warned profits for the year would be £15m lower than previous estimates and said that he planned to cut costs at the group by offloading its building and civil engineering, facilities services and property development divisions.
These non-core businesses, which accounted for revenues of £1.3bn in 2005, generated just £14m profit in the same period. Amec intends to sell the businesses as quickly as possible.
News of the sale quickly follows conclusion of a broad strategic review of the company, which has fended off two bid approaches this year. Profits for 2006 are set to be £15m below the board’s earlier estimates, owing to increased restructuring and legal costs in its UK construction arm.
Outlining his punchy strategy, Brikho said: ‘This business suffers from complexity and an excessive cost base, but we now have a clear and deliverable plan to turn it around. Amec will be a fitter organisation and more clearly focussed on client needs in attractive markets. I will bring an end to the uncertainty that has been hanging over this company for too long.’