THE UK's largest design and engineering consultant, WS Atkins, said strong demand in its major markets left it on course for `good progress' this year.

Despite the worsening economic climate, WS Atkins has been buoyed by major design contracts, as well as healthy rail and highways work and rapid growth in the Middle East.

The company, based in Surrey and with offices in Altrincham, Warrington and Crewe, is involved in major projects including London's 2012 Olympics and the Crossrail east-west rail link.

The design business had made strong progress since April in strong markets for oil, gas, defence and aerospace work, Atkins said.

Its highways business - part of the consortium set to carry out a £4.5bn widening of the M25 - has made `solid progress' and begun design work on the £450m M74 motorway scheme in Glasgow.

The rail arm has also made a positive start, with projects including major resignalling works at Newport as part of Network Rail's plans to modernise signalling systems across Wales and the south west.

The group sought to reassure over its cost consultancy business, Faithful & Gould, which it said was performing well in a tougher economic environment.

It hopes the broad range of F&G's client base will see it through the difficult climate. At interim results in June, Atkins said the group had `limited exposure' to the falling commercial property market.

In the Middle East, demand remains `very high', and the company has won a clutch of deals in Oman, Abu Dhabi and Dubai.

These include the design of the Tameer Tower, which at 600m will be the second tallest building in Dubai.

Citigroup analyst Ed Steele said: "The vast majority of Atkins' operations should be cyclically resilient over the next 12 months.

Cyclical softness should be limited to less than a quarter of the group."

Atkins posted profits of £91.9m for the year to April 30, on revenues of £1.3bn.