ENGINEERING group WS Atkins today posted a 31 per cent rise in annual profits despite a slowdown in its key rail market.

The Epsom-based company said pre-tax profits before accounting for its pension fund deficit, goodwill and one-off items were '73.6 million against '56.2 million a year ago.

Atkins said cost-cutting on the railways affected the profits of its transport division.

However, it said the downturn in the rail business was temporary and that it would improve, as even conservative views of forecast spending for the sector indicated a growing market in the medium term.

The group said its overall order book was strong, with about 57 per cent of budgeted turnover for 2006 in hand at the start of the new financial year.

Chief executive Keith Clarke said: "Prospects for the business remain good and the outlook for the group's core markets is positive."

Atkins does design and consultancy work on infrastructure projects in a range of sectors including rail, water, health and education.

The group is also part of the Metronet consortium charged with modernising the London Underground network.

It employs some 15,000 people, of whom about 80% work in its operations in the UK, with the rest in the US, Europe, the Middle East and South East Asia. Tweet