AMEC plc interim report 2007 · Samir Brikho Chief executive Business and financial review These are strong results and demonstrate that AMEC is delivering sustainable improvements

Delivering performance

and value

AMEC plc interim report 2007

Amec Int_07_front_CS2.indd 1 11/9/07 13:27:46

Highlights 1Chairman’sstatement 2Businessandfinancialreview 3Consolidatedincomestatement 14Consolidatedstatementofrecognisedincomeandexpense 17Consolidatedbalancesheet 18Consolidatedcashflowstatement 19Notestotheaccounts 20Independentreviewreport 26Shareholderinformation 27

Contents

AMECplcisafocusedsupplierofhigh-valueconsultancy,engineering,andprojectmanagementservicestotheworld’senergy,powerandprocessindustries.Withannualrevenuesofover£2.2billion,AMECdesigns,deliversandmaintainsstrategicandcomplexassetsforitscustomers.

AMEC’sNaturalResources,PowerandProcessandEarthandEnvironmentalbusinessesemployapproximately18,000peopleinmorethan25countriesglobally.

AMECsharesaretradedontheLondonStockExchangewherethecompanyislistedintheSupportServicesSector(LSE:AMEC.L).


Highlights 1Chairman’sstatement 2Businessandfinancialreview 3Consolidatedincomestatement 14Consolidatedstatementofrecognisedincomeandexpense 17Consolidatedbalancesheet 18Consolidatedcashflowstatement 19Notestotheaccounts 20Independentreviewreport 26Shareholderinformation 27

Contents

AMECplcisafocusedsupplierofhigh-valueconsultancy,engineering,andprojectmanagementservicestotheworld’senergy,powerandprocessindustries.Withannualrevenuesofover£2.2billion,AMECdesigns,deliversandmaintainsstrategicandcomplexassetsforitscustomers.

AMEC’sNaturalResources,PowerandProcessandEarthandEnvironmentalbusinessesemployapproximately18,000peopleinmorethan25countriesglobally.

AMECsharesaretradedontheLondonStockExchangewherethecompanyislistedintheSupportServicesSector(LSE:AMEC.L).

Highlights

Pre-taxprofit*up127%to£48million(H12006:£21million)

Recordperformanceinallthreecoredivisions

Overallexpectationsfor2007pre-taxprofit*increasedby£5million

Interimdividendincreased10%to4.6ppershare

Divestmentofnon-corebusinesseseffectivelycomplete;expectedFY2007netpost-taxgainnotlessthan£210million

Expectednetcashpostdivestmentsc.£600millionasat31December2007**

STEPChangeprogrammecompletedaheadofschedule;2008benefitupfrom£35milliontoatleast£40million

2007 2006Sixmonthsended30June £ million £million change

Continuingoperations: Revenue 1,152.9 1,009.3 +14% Profitbeforeintangibleamortisation,

exceptionalitems*andincometax 48.2 21.2 +127% Profit/(loss)beforeincometax 66.9 (24.7) nmProfitfromdiscontinuedoperationsbeforeexceptionalitems 5.0 11.3 nmProfit/(loss)fromdiscontinuedoperations 1.4 (14.4) nmDilutedearningspersharefromcontinuingoperationsbeforeintangibleamortisationandexceptionalitems 10.2p 4.5p +127%Dilutedearningspershare 15.1p (12.6)p nmInterimdividendpershare 4.6p 4.2p +10%

nm:notmeaningful

*Profitforcontinuingoperationsbeforeintangibleamortisationof£1.2million(2006:£2.8million)andpre-taxexceptionalprofitsof£19.9million(2006:chargesof£43.1million).**Assumingdivestmentscompleteasexpectedandbeforefurthersharebuybacks.

Any forward looking statements made in this document represent management’s best judgement as to what may occur in the future. However, the group’s actual results for the current and future fiscal periods and corporate developments will depend on a number of economic, competitive and other factors, some of which will be outside the control of the group. Such factors could cause the group’s actual results for future periods to differ materially from those expressed in any forward looking statements made in this document.

Highlights AMECplcinterimreport2007 1


*Earningsbeforeinterest,taxandamortisation.**Netcashat31December2007,assumingdisposalscompleteasexpectedandbeforefurthersharebuybacks.

www.amec.com

Jock Green-ArmytageChairman

Chairman’s statement

Wehavemadetremendousprogressduring2007,deliveringonthestrategySamirBrikhofirstoutlinedinDecember2006.AMECisalreadyaverydifferentcompanytothatwhichyousawthistimelastyearandthisisrecognisedinthestrongsharepriceperformanceovertheperiod.AMEC’smarketcapitalisationhasmorethandoubled,from£1billiontomorethan£2billiontoday.

“STEPChange”isthenamewegavetoourculturalandstructuralchangeprogramme.WerecognisedthatAMECneededtobecomeleanerandfitterifitwastobesuccessfulforthelongterm.TheresultshaveexceededourDecemberexpectations.Wewillnotonlydeliveragreaterquantumofsavingsthanweoriginallyidentified,buthaveimplementedthemfaster.STEPChangeisnowcompleteandthebenefitsgeneratedwillsupportourcommitmenttoasixpercentprofit*marginin2008.

InDecember2006,weannouncedourintentiontodivestthenon-coreBuiltEnvironmentbusinesses.Thisprogrammehasbeenverysuccessfulandisnowessentiallycomplete.SincethesaleofSPIEinJuly2006,wehaveraised£1billionfromthesaleofnon-corebusinessesandexpecttohavenetcashofaround£600millionuponcompletionoftheprogramme**.

WehaveachievedarecordfirsthalftradingperformanceineachoftheNaturalResources,PowerandProcessandEarthandEnvironmentalbusinesses.Theprofitbeforeintangibleamortisation,exceptionalitemsandincometaxof£48.2millionforcontinuingbusinesseswas127percentabovethesameperiodlastyear.Ourendmarketsremainstrongandwehaveraisedouroverallexpectationsforpre-taxprofitin2007.Theinterimdividendisincreasedby10percentto4.6penceandtheboardaimstorebuildsustainabledividendcoverfromits2006leveltoatargetlevelofovertwotimes.

Wewillrecommencethesharebuybackprogrammeandexpecttoreturnupto£85milliontoshareholdersinthisway,overandabovethe£15millionspentearlierthisyear.

IwouldliketothankJamesDallasandJohnEarlyfortheircontributiontoAMEC.JamesDallaswasanon-executivedirectorofAMECfrom1999untilMayofthisyear.JohnEarlyretiredfromtheboardandhisexecutivedutiesattheendofJuly,havingbeenanexecutivedirectorsince1986.Bothwerevaluedboardcolleaguesandtheirsupportovertheyearshasbeenverymuchappreciated.

Thebusinessisnowfirmlyundercontrol,allowingustolookforwardwithconfidence.SamirBrikho,hismanagementteamandalltheemployeesofAMEChaveworkedtirelesslytoachievesomuchinsuchashorttime.AMECisnowfocusedontheenergy,powerandprocessmarkets;itsmarginsareimproving;itsbalancesheetisstrong;anditiswellpositionedforthenextphaseofitsdevelopment.Thefutureisindeedexciting.

2 AMECplcinterimreport2007Chairman’s statement

6September2007


*Profitbeforeintangibleamortisation,exceptionalitemsandincometax.

Basis of reporting and discontinued activities 2007Thenon-coreBuiltEnvironmentbusinessesarenowtreatedasdiscontinuedoperations.Thecomparativesegmentalresultsforthesixmonthsended30June2006andtheyearended31December2006havebeenrestatedtoreflectthischangeandsomeminorbusinessrestructuring.Theserestatementsareconsistentwiththeannouncementmadeon25June2007.

Business and financial review AMECplcinterimreport2007 �

Samir BrikhoChiefexecutive

Business and financial review

ThesearestrongresultsanddemonstratethatAMECisdeliveringsustainableimprovementsinperformance.TheSTEPChangeprogrammehasbeencompletedaheadofscheduleand2008benefitsofatleast£40millionaregreaterthanoriginallycommitted.Thedivestmentprogrammeiseffectivelycomplete,goodprogressisbeingmadewithlegacyissuesandthebalancesheetisstrong.

AllofAMEC’sendmarketsarebuoyantandtheboardisconfidentthatmargintargetsofsixpercentin2008andeightpercentin2010willbedelivered.

AMECisnowwellpreparedforthenextphaseofitsdevelopmentandhasanexcitingfutureasafocusedsupplierofhighvalueconsultancy,engineeringandprojectmanagementservicestoclientsintheenergy,powerandprocessindustrysectors.

Financial highlightsRevenueforthesixmonthsended30June2007increasedby14percentto£1,153million(2006:£1,009million),reflectingstronggrowthintheNaturalResourcesandPowerandProcessbusinesses.

Pre-taxprofitbeforeintangibleamortisationandexceptionalitemsfromcontinuingoperationsof£48.2millionwas127percentaheadoflastyear(2006:£21.2million)andwellabovetheboard’sDecember2006expectations.Excluding£10.2millionofone-offcostsrelatingtotheSTEPChangeprogramme,pre-taxprofitwas175percenthigherat£58.4million.Performancewasstronginallthreecoredivisionsofthebusiness.Resultsalsobenefitedfroma£14.1millionimprovement

innetfinancingincome,whicharosefromthedivestmentofAMECSPIEinJuly2006andfromon-goinggoodcashmanagement.

Therewerepre-taxexceptionalprofitsof£19.9million(2006:chargesof£43.1million)andintangibleamortisationof£1.2million(2006:£2.8million),resultinginpre-taxprofitfromcontinuingoperationsof£66.9million(2006:lossof£24.7million).

Dilutedearningspersharefromcontinuingoperationswere10.2pence(2006:4.5pence).

Post-taxprofitbeforeexceptionalitemsfromdiscontinuedoperationswas£5.0million.Therewerepost-taxexceptionalcreditsof£3.3millionandthepost-taxlossondisposalofpipelineconstructionactivitieswas£6.9million,givingatotalpost-taxprofitfortheperiodof£1.4million.

Theinterimdividendisincreasedby10percentto4.6pencepershare(2006:4.2pence).

Outlook 2007EndmarketsforeachofAMEC’sbusinessesremainstrong.Theboard’soverallexpectationsforpre-taxprofit*in2007areincreasedby£5million,mainlyreflectingthestrengthoftradingandthegroup’simprovedcashposition.

Dividend policyTheboardhasreviewedthegroup’sdividendpolicyandintendstorebuildearningspersharedividendcoverfromits2006leveltoatargetlevelofovertwotimes.


www.amec.com4 AMECplcinterimreport2007Business and financial review

Business and financial reviewcontinued

Capital structure and share buybacksAverageweeklynetcashforthesevenmonthsended31July2007was£350million.Netcashasat30June2007,includingcashclassifiedasheldforsaleonthebalancesheet,was£455.5million(31December2006:£387.1million).

InDecember2006,AMECannounceditsintentiontoreturnupto£100milliontoshareholdersbywayofasharebuybackprogramme.Todate2.85millionshareshavebeenboughtinthemarkettobeheldintreasury,atatotalcostof£15million.Theboardconfirmsitsexpectationthatthebuybackprogrammewillrecommence,withthebalanceofupto£85millionbeingreturnedtoshareholdersin2007andbeyond.

Uponcompletionofthedivestmentprogrammeofnon-corebusinesses,andsubjecttoallconsentsbeingreceived,netcashat31December2007isexpectedtobec.£600million.Takingaccountofthecommitmenttofurthersharebuybacksofupto£85million,andadvancecashandotherfactorsof£100million,cashavailabletothegroupisexpectedtobec.£400million.Withacurrentinternaldebtceilingofc.£200million,resourcesavailableforinvestmentinthebusinessshouldbeinexcessof£600million.

Duringthefirsteightmonthsof2007,AMEChassuccessfullydeliveredtheSTEPChangeprogrammeandeffectivelycompletedthedivestmentofnon-corebusinesses.Withthisrestructuringphasecomplete,AMECisnowwellpreparedforthenextphaseofitsdevelopmentandseesmajoropportunitiestogroworganicallyandbystrategicacquisition.

Segmental reviewAmountsandpercentagemovementsrelatingtosegmentalactivitiesarestatedforcontinuingoperations.

Amountsrelatingtosegmentalearningsbeforeinterest,taxandamortisation(“EBITA”)arestatedbeforecorporatecostsof£21.3million(2006:£10.3million)andpre-taxexceptionalprofitsof£19.9million(2006:chargesof£43.1million),butincludingjointventureprofitbeforetaxof£0.9million(2006:£1.3million).

Theaveragenumberofemployeesisstatedforthesixmonthsended30June2007andtheyearended31December2006.

Amountsrelatingtosegmentalnetassets/(liabilities)arestatedbeforeintangibleassetsandnetcash,butincludinginterestsinjointventuresandassociates.

Netassets/(liabilities)andorderbookarestatedasat30June2007and31December2006.

CommentaryforeachofAMEC’sprincipalsegmentsofactivityfollows.


Business and financial review AMECplcinterimreport2007 5

Natural Resources

NaturalResourcescomprisesAMEC’sactivitiesinOilandGasServices(c.70percentofannualisedrevenues),OilSands(engineeringandinfrastructure,c.15percentofannualisedrevenues)andMetalsandMineralsMining(c.15percentofannualisedrevenues).Servicesincludeassetdevelopmentandassetsupportincludingconsultancyandengineeringdesign,projectmanagement,commissioningandoperationalsupport.

“Capex”activities(thoseactivitiesrelatedtoclients’capitalexpenditure)and”opex”activities(relatingtoclients’operatingexpenditure)eachaccountforapproximatelyhalfofannualisedrevenues.Profitisweightedtowardscapex,whichaccountsforsometwothirdsofannualisedEBITA.

Revenuefortheperiod,excludinglump-sumfabricationwhichhasnowceased,increasedby29percentto£498.4million,drivenbystrengthineachoftheprincipalareasofactivity.

EBITAincreasedby39percentto£37.2million(2006:£26.7million),withEBITAmarginexcludinglump-sumfabricationincreasingto7.5percent(2006:6.9percent).

Netassetsdeclinedby19percentto£57.5million,mainlyreflectingsettlementofthelastoutstandinglumpsumcontractsdeliveredbythebusiness.

TheNaturalResourcesorderbookhasincreasedby11percentsincetheyear-end,to£1.14billion.

AMEChascontinuedtowinbusinessbothfromexistingclientsandfromnewclientsaroundtheworld.Majorawardsduringtheyeartodateincludeafive-yearconsultancyandengineeringservicescontractwithKuwaitNationalPetroleumCompanycoveringupgrades,refurbishmentandmodificationsonKuwait’sthreeexistingrefineries;a15-monthextensiontoanAMECjointventure’soperationsandmaintenancecontractwithConocoPhillipsAustraliafortheBayu-UndanOffshoreDevelopmentlocatedintheTimorSea;acontractawardedbyPotashCorptodesignandmanageexpansionofitsCoryPotashMineinSaskatchewan,Canada;andacontractwithFairfieldEnergyLimitedtoprovidearangeofconsultancyservicesthatareintegraltoitsacquisitionofDunlinassetsintheUKNorthSea.FairfieldhasalsoenteredintoexclusivenegotiationswithAMECfortheprovisionof‘dutyholder’servicesinrelationtotheassets.Furtherdetailsontheseandothercontractawardsmaybefoundatwww.amec.com/media.

£million 2007 2006 change

Revenue 498.4 385.6* +29%EBITA �7.2 26.7* +39%EBITAmargin 7.5% 6.9%* +0.6ptsAverageemployees 7,950 6,750 +18%Netassets 57.5 71.3 -19%Orderbook £1.14bn £1.03bn +11%

*Excludinglump-sumfabrication,nowceased(2006revenue:£66.5million).



Natural Resourcescontinued

AcquisitionsTheNaturalResourcesbusinessistargetinggrowththroughacquisitioninservicesrelatedtoitscoreoilandgasservicesactivitiesandtoin-situoilsands.Itisalsoseekingacquisitionopportunitieswhichwouldprovidecapacityandgeographicalexpansioninoilandgasandinmineralsandmetalsmining.

Consistentwiththisstrategy,inJuly2007,NaturalResourcesincreaseditspresenceintheCaspianfrontierregionthroughtheacquisitionofa60percentinterestinKazakhoilfieldservicescompanyBatysKazakhstanKuatServiceLimited,forc.£5million.

InAugust2007,AMECandMalaysiancompanyMMCcreatedajointcompanytodeliverprojectmanagementandengineeringservicestooilandgascustomersintheexpandingMalaysianandAsianmarkets.ThenewcompanywillserveasAMEC’sFarEasternengineeringhubandwillworkinconjunctionwithitsengineeringcentresofexcellenceinEuropeandtheAmericas.

AMECseesfurtheropportunitiesforacquiredgrowthduring2007andbeyond.

OutlookEndmarketsinNaturalResourcesremainstrong.Majoropportunitiesarebeingpursuedinfrontierregionsandfurthersuccessesareanticipatedduring2007.

AMECexpectsNaturalResourcesperformancein2008tobeattheupperendofthetargetEBITAmarginrangeofbetweensevenandeightpercent.



Power and Process

PowerandProcessincludesAMEC’sactivitiesinUKandAmericasindustrialandpowermarkets,innuclearandinwindenergy.Thebusinessdesigns,delivers,enhancesandmaintainsinfrastructureforabroadrangeofclientsinthepublicandprivatesectors.

AnnualisedrevenuesaresplitbetweeneachofthethreeprincipalareasofactivityinPowerandProcessasfollows:UKIndustrialc.45percent,AmericasIndustrialc.33percentandNuclearc.22percent.

Revenuefortheperiodincreasedby35percentto£492.3million(2006:£366.0million),withstronggrowthintheUKandAmericasIndustrialbusinesses.

EBITAfortheperiodincreasedby84percentto£18.6million(2006:£10.1million),reflectingparticularlystrongperformanceintheUKandAmericasIndustrialbusinesses.OverallEBITAmargin,beforeone-offSTEPChangecostsof£2.4million,increasedstronglyto4.3percent(2006:2.8percent),reflectingimprovedmanagementfocusandastrongerpricingenvironment.

Netliabilitiesdeclinedby29percentto£39.1million(31December2006:£55.2million),largelyasaresultofanexceptionalprovisionreleasefollowingtheresolutionofamajorlegacydispute.

Thebusinesshasbeenmoreselectiveinnewworktakenonandaminimumgrossmarginofeightpercentnowappliestoallnewcontracts.Thisincreasedfocusonmarginresultedina12percentdeclineintheorderbookduringthefirsthalfof2007,asthebacklogassociatedwithhistoriclowermargincontractshasdeclined.Majorawardsintheyeartodateincludeacontractforconceptualanddetailedengineeringdesign,environmentalandprojectmanagementservicesonStage1ofNationalGrid’s91kilometregaspipelinefromEasingtontoHatton,UK;afive-yearcontractwithBritishEnergyforengineeringandprojectmanagementservicesonthreeofitsnuclearpowerplantsintheUKandacontractwithSouthernCompanytoinstallnewclean-airsystemsontwo865-megawattcoal-firedboilersinGeorgia,US.Furtherdetailsontheseandothercontractawardsmaybefoundatwww.amec.com/media.

AcquisitionsTheUKnuclearmarketofferssignificantgrowthopportunitiesintheTier1decommissioningmarketandindefence.ConsistentwiththefocusonmarginintheIndustrialbusinesses,AMECisinthefinalstagesofacquiringalowcostengineeringbusinessinLatinAmerica,withcompletionexpectedlaterin2007.


Revenue 492.� 366.0 +35%EBITA 18.6 10.1 +84%EBITAmargin �.8% 2.8% +1.0ptsAverageemployees 6,150 4,925 +25%Netliabilities (�9.1) (55.2) +29%Orderbook £1.27bn £1.44bn -12%



Power and Processcontinued

Wind Energy AMECisinvolvedwiththedevelopmentofwindenergyprojectsintheUK,whereithasanonshoreportfolioofaround1,100MW.Inaddition,engineeringandconstructionservicesareprovidedtoclientsintheUSandCanada.AMECintendstoleverageitsproductofferinginwindenergyacrossNorthAmericaandtheUK.

ResultsincludethenetcostsofprogressingAMEC’sUKportfolioofwinddevelopments,whichoverthefouryearsendingDecember2007areexpectedtohavereached£17million.DespitehavingreceivedformalplanningapprovalinMay2007,the23megawattEdinbaneprojectisnowbeingchallengedintheScottishCourts.

ManagementTimWatson,PresidentofthePowerandProcessdivision,leftthecompanyinJuly2007forpersonalreasonsandtotakeupapositionwithamajorCanadianminingcompany.SamirBrikho,ChiefExecutive,hasassumedcontrolofthedivisionpendingtheappointmentofhissuccessor.

OutlookEndmarketsinPowerandProcessremainstrong.TheindustrialbusinessesinUKandAmericasareexpectedtodeliverstrongtop-linegrowthandimprovedmarginperformancein2007.

In2008,thefocusofthebusinesswillbeonmarginimprovement,evenattheexpenseofrevenuegrowth.

AMECcontinuestotargetanEBITAmarginforPowerandProcessofbetweenfiveandsevenpercentin2008.



Earth and Environmental

AMEC’sEarthandEnvironmentalbusinessprovidesspecialistenvironmental,geotechnical,programmemanagementandconsultancyservicestoabroadrangeofclientsinthepublicandprivatesectors,primarilyinNorthAmerica.Thebusinesshasstrongpositionsincertainendmarketsectors,notablynaturalresources(c.20percentofannualisedrevenues),USFederal(c.40percentofannualisedrevenues)andotherprivateandpublicsectormarkets(c.40percentofannualisedrevenues).EarthandEnvironmentaloperatesfromaregionalnetworkandischaracterisedbyalargenumberofsmallvaluecontracts.

Revenuefortheperiodincreasedby4percentatconstantratesofexchange,withEBITAupby46percentonthesamebasis.PerformancewasparticularlystronginthenaturalresourcessectorinWesternCanadaandFederalintheUS,butwastemperedbyreducedactivityinIraq.EBITAmarginincreasedbyalmost50percentto6.4percent(2006:4.4percent),withfurtherimprovementexpectedinthesecondhalf.

Netassetsattheperiodendof£36.5million(30June2006:£29.6million)reflectedthenormalseasonalpatternforthebusiness.

AcquisitionsTheEarthandEnvironmentalindustryislargeandfragmented,presentingopportunitiesforsmallbolt-onacquisitions.Thebusinessistargetinggrowththroughacquisitioninservicesrelatedtoitscoreactivities,togetherwithcapacityandgeographicalexpansion.

Duringthefirsteightmonthsof2007,twosmallenvironmentalconsultancieswereacquired.

OutlookEndmarketsforenvironmentalservicesremainstrongandAMECexpectstheEarthandEnvironmentalbusinesstodeliveranotherstrongperformancein2007despiteweaknessofthedollar.

AMECcontinuestotargetanEBITAmarginfortheEarthandEnvironmentalbusinessofbetweensixandeightpercentin2008.


Revenue 140.1 151.6 -8%EBITA 8.9 6.7 +33%EBITAmargin 6.4% 4.4% +2.0ptsAverageemployees �,175 3,100 +2%Netassets �6.5 19.0 +92%



Investments and other activities

InvestmentsandotheractivitiesincludesongoingPPPactivitiesinKoreaandsupportservicesintheUK,togetherwithactivitiesinRail(nowsold),HongKongandcertainUSconstructionmarketswhereoperationswerecompletedduringthefirsthalfof2007.NetliabilitiesincludeprovisionsforindemnitiesgrantedonthedisposalofAMECSPIEandmostofthelitigationandsettlementprovisionsrelatingtolegacyissues.

Revenuefortheperiodhalved,asexpected,to£31.2million(2006:£59.5million),withprofitof£0.3million(2006:loss£2.2million)reflectingthesaleofactivitiesinRailandreducedlevelsofactivityinHongKongandtheUS.

Profitsatthefullyearwillbesignificantlybelowthoseachievedin2006(2006:£12.8million)astherangeofactivitiesisreduced.


Revenue �1.2 59.5 -48%EBITA 0.� (2.2) nmEBITAmargin 1.0% (3.7)% nmAverageemployees �50 475 -26%Netliabilities (117.�) (109.4) -7%

nm:notmeaningful



Strategic restructuring

STEP Change successfully completedInOctober2006,AMEClaunched“STEPChange”,aprogrammeofchangeinthestructureandcultureofthecompany.Theprogrammewascompletedaheadofscheduleon5September2007andexceededalloriginalexpectations.Comparedwiththe2006baseline,benefitsofatleast£40millionforthecontinuingbusinessesarenowexpectedin2008,upfromaninitialcommitmentinMarch2007of£35million.

Firsthalfresultsincludeone-offSTEPChangecostsof£10million.Forthefullyear,totalcostsoftheprogrammeareexpectedtobe£16million,resultinginnetsavingsof£7millionin2007.

Operational ExcellenceFollowingthesuccessfulcompletionofSTEPChange,AMECisproceedingwith“OperationalExcellence”,atwoyearprogrammedesignedtoradicallyimproveoperatingperformance.OperationalExcellencewillbeamajorcontributortoAMECdeliveringitstargetmarginof8percentby2010.

Theprogrammeispackagedinto12elementsidentifiedasthosemostimportanttoachievinghighperformanceacrossthegroup.AMECintendstoimprovethequalityofthebusinessportfolioandservicedeliverytocustomers;andtosimplifyandoptimiseinternalcontrolsandprocesses.

Cashmanagement Commercialmanagement Customeracquisitionandrelationshipmanagement Employeedevelopment Financialcontrol Healthandsafety Informationtechnology Projectmanagementandengineering Strategicmarketing Supplychainmanagement Sustainability Timebasedmanagement

FurtherdetailsaboutOperationalExcellencewillbecommunicatedattheendof2007.

Divestment of non-core businessesThedivestmentofnon-coreactivitiesisnoweffectivelycomplete.Aggregatecashproceedsfromthedivestmentprogrammebeforecostsandtaxareexpectedtobec.£340million.

Built EnvironmentOn12July2007,AMECandLandSecuritiesTrilliumagreedtermsfordivestmentofthemanagementteamandnineunderlyingPPPassetsoftheProjectInvestmentsbusinessfor£163.5million.Majorconsentsarerequiredfrompublicauthoritiesandco-shareholdersandlendersinthePFIprojects.Completionisexpectedby31October2007.

On27July2007,thedivestmentofthePropertyDevelopmentsandUKBuildingandCivilEngineeringbusinessestoMorganSindallplcwascompletedforapremiumof£55milliontotheaggregatenetassetsasat30April2007.



Strategic restructuringcontinued

On3August2007,AMECandSPIES.A.agreedtermsfordivestmentoftheBuildingandFacilitiesServicesbusinessfor£117million.CompletionisexpectedinSeptember2007.

Thedivestmentofnon-coreBuiltEnvironmentbusinesseswillbeaccountedforinthesecondhalfof2007.Theaggregatepost-taxnetexceptionalgainisexpectedtobenotlessthan£210million.IfonemajorPPPconcessionisretainedduetocomplexpre-emptionrights,thenetgainisexpectedtobenotlessthan£150million.

AMEChasongoingresponsibilityforlatentdefectsonallcompletedprojectsandiscurrentlydealingwithfinalaccounts/ongoingissuesofanysignificancerelatingtosixcompletedUKconstructioncontracts.Ofthese,twocontractshavebeensettledandtheboardremainsconfidentthattheremainingissuescanbedealtwithwithintheprovisionspreviouslymade.

Peripheral activitiesFiveperipheralnon-corebusinessesweredivestedduringthefirsthalfof2007:

Continuingactivities

AMECSPIERail DynamicStructures

Discontinuedactivities

AMECSPIECapag BuchanConcreteSolutions MidwestPipelines

Thesedivestmentsgeneratedanaggregatefirsthalfpost-taxgainof£9.7million.Furtherdetailsoftheexceptionalprofitsaresetoutinnote3.

Settlement of litigation and other legacy issuesAMECismakingsubstantialprogresswithitsstrategyofsettlementofdisputeswherereasonabletodoso.

Inits2006accounts,AMECnotedsixmajorcontingentliabilities.

On25June2007,AMECannouncedthatsettlementhadbeenreachedontheJordanMagnesiaCompanyLtd.(Jordan),andThelwallViaduct(UK)disputes.Settlementwaswellwithintheprovisionspreviouslymade

PositiveprogresshasbeenmadeontheSanFranciscoJail(US)andFloridadevelopment(US)

AfurtherhearingoftheCourthouses(US)disputeisexpectedinthefourthquarterof2007

Asexpected,theWorldTradeCenter(US)willremainalong-termcontingentliability

Provisionscurrentlyheldforfuturecostsoflitigationtotal£75million(31December2006:£90million).

Theboardhasreviewedtheoveralllevelofprovisionsassociatedwiththeabove.Confidenceintheoveralllevelofprovisioninghasincreased,withtheboarddecidingtomakeanetpre-taxreleaseofexceptionalprovisionsof£8million(£3.3millioncontinuing;£4.7milliondiscontinued).Furtherdetailsoftheexceptionalprofitsaresetoutinnote3.


Business and financial review AMECplcinterimreport2007 1�

Corporate costs and board changes

Corporate costsAsaresultofone-offcostsof£6.6millionassociatedwiththeSTEPChangeprogramme,andincreasedchargesof£2.7millioninrespectofshare-basedpayments,corporatecostsincreasedfrom£10.3millioninthefirsthalfof2006to£21.3millioninthefirsthalfof2007.

Board changesJamesDallasstooddownasanon-executivedirectorofAMECplcattheconclusionoftheAnnualGeneralMeetingonWednesday16May2007.MrDallashadbeenadirectorsince28October1999.

Withthegroup’sdivestmentprogrammeeffectivelycomplete,JohnEarlyretiredfromtheboardandhisexecutivedutieson31July2007.MrEarlyhadbeenanexecutivedirectorofAMECsinceMarch1986andwaslatterlyresponsiblefortheBuiltEnvironmentbusinesses.


www.amec.com

Consolidated income statement

Sixmonthsended30June2007 Exceptional items Exceptional arisingfromprofits/(costs) litigationand ofexiting Before separation businesses exceptional costs andmarkets items (note3) (note3) Total Note £million £million £million £million

ContinuingoperationsRevenue 2 1,152.9 – – 1,152.9Costofsales (1,010.4) 10.3 0.5 (999.6)Grossprofit 142.5 10.3 0.5 153.3Administrativeexpenses (100.9) – – (100.9)(Loss)/profitonbusinessdisposalsandclosures – (4.0) 13.1 9.1Profitbeforenetfinancingcosts 41.6 6.3 13.6 61.5Financialincome 11.1 – – 11.1Financialexpense (6.4) – – (6.4) Netfinancingincome 4.7 – – 4.7Shareofpost-taxresultsofjointventuresandassociates 0.7 – – 0.7Profitbeforeincometax 2 47.0 6.3 13.6 66.9Incometax 4 (13.8) (3.0) (0.2) (17.0)Profitfortheperiodfromcontinuingoperations 33.2 3.3 13.4 49.9Profit/(loss)fortheperiodfromdiscontinuedoperations 5 5.0 3.3 (6.9) 1.4Profitfortheperiod 38.2 6.6 6.5 51.3

Attributableto:Equityholdersofthecompany 51.3Minorityinterests – 51.3

Basicearningspershare: 6Continuingoperations 15.2pDiscontinuedoperations 0.4p 15.6p

Dilutedearningspershare: 6Continuingoperations 14.7pDiscontinuedoperations 0.4p 15.1p

14 AMECplcinterimreport2007Consolidatedincomestatement

1Amec Int_07_back_CS2.indd 14 10/9/07 18:20:29

Sixmonthsended30June2007 Exceptional items Exceptional arisingfromprofits/(costs) litigationand ofexiting Before separation businesses exceptional costs andmarkets items (note3) (note3) Total Note £million £million £million £million

ContinuingoperationsRevenue 2 1,152.9 – – 1,152.9Costofsales (1,010.4) 10.3 0.5 (999.6)Grossprofit 142.5 10.3 0.5 153.3Administrativeexpenses (100.9) – – (100.9)(Loss)/profitonbusinessdisposalsandclosures – (4.0) 13.1 9.1Profitbeforenetfinancingcosts 41.6 6.3 13.6 61.5Financialincome 11.1 – – 11.1Financialexpense (6.4) – – (6.4) Netfinancingincome 4.7 – – 4.7Shareofpost-taxresultsofjointventuresandassociates 0.7 – – 0.7Profitbeforeincometax 2 47.0 6.3 13.6 66.9Incometax 4 (13.8) (3.0) (0.2) (17.0)Profitfortheperiodfromcontinuingoperations 33.2 3.3 13.4 49.9Profit/(loss)fortheperiodfromdiscontinuedoperations 5 5.0 3.3 (6.9) 1.4Profitfortheperiod 38.2 6.6 6.5 51.3

Attributableto:Equityholdersofthecompany 51.3Minorityinterests – 51.3

Basicearningspershare: 6Continuingoperations 15.2pDiscontinuedoperations 0.4p 15.6p

Dilutedearningspershare: 6Continuingoperations 14.7pDiscontinuedoperations 0.4p 15.1p

Consolidated income statementcontinued

ConsolidatedincomestatementAMECplcinterimreport2007 15

Sixmonthsended30June2006 Exceptional items Exceptional arisingfrom profits/(costs) litigationand ofexiting Before separation businesses exceptional costs andmarkets items (note3) (note3) Total Note £million £million £million £million

ContinuingoperationsRevenue 2 1,009.3 – – 1,009.3Costofsales (890.1) (5.0) (13.0) (908.1)Grossprofit/(loss) 119.2 (5.0) (13.0) 101.2Administrativeexpenses (92.3) – – (92.3)Lossonbusinessdisposalsandclosures – (15.0) (10.1) (25.1)Profit/(loss)beforenetfinancingcosts 26.9 (20.0) (23.1) (16.2)Financialincome 5.3 – – 5.3Financialexpense (14.7) – – (14.7) Netfinancingcosts (9.4) – – (9.4)Shareofpost-taxresultsofjointventuresandassociates 0.9 – – 0.9Profit/(loss)beforeincometax 2 18.4 (20.0) (23.1) (24.7)Incometax 4 (6.1) – 3.9 (2.2)Profit/(loss)fortheperiodfromcontinuingoperations 12.3 (20.0) (19.2) (26.9)Profit/(loss)fortheperiodfromdiscontinuedoperations 5 11.3 (10.5) (15.2) (14.4)Profit/(loss)fortheperiod 23.6 (30.5) (34.4) (41.3)

Attributableto:Equityholdersofthecompany (41.1)Minorityinterests (0.2) (41.3)

Basiclosspershare: 6Continuingoperations (8.2)pDiscontinuedoperations (4.4)p (12.6)p

Dilutedlosspershare: 6Continuingoperations (8.2)pDiscontinuedoperations (4.4)p (12.6)p


www.amec.com

Consolidated income statementcontinued

16 AMECplcinterimreport2007Consolidatedincomestatement

Yearended31December2006 Exceptional items Exceptional arisingfrom profits/(costs) litigationand ofexiting Before separation businesses exceptional costs andmarkets items (note3) (note3) Total Note £million £million £million £million

ContinuingoperationsRevenue 2 2,121.6 – – 2,121.6Costofsales (1,867.0) (17.6) (4.3) (1,888.9)Grossprofit/(loss) 254.6 (17.6) (4.3) 232.7Administrativeexpenses (171.7) – – (171.7)Lossonbusinessdisposalsandclosures – (39.1) (41.8) (80.9)Profit/(loss)beforenetfinancingcosts 82.9 (56.7) (46.1) (19.9)Financialincome 9.3 – – 9.3Financialexpense (16.3) – – (16.3) Netfinancingcosts (7.0) – – (7.0)Shareofpost-taxresultsofjointventuresandassociates (0.1) – – (0.1)Profit/(loss)beforeincometax 2 75.8 (56.7) (46.1) (27.0)Incometax 4 (22.5) 4.9 2.4 (15.2)Profit/(loss)fortheperiodfromcontinuingoperations 53.3 (51.8) (43.7) (42.2)Profit/(loss)fortheperiodfromdiscontinuedoperations 5 0.5 (16.4) 277.3 261.4Profit/(loss)fortheperiod 53.8 (68.2) 233.6 219.2

Attributableto:Equityholdersofthecompany 218.1Minorityinterests 1.1 219.2

Basic(loss)/earningspershare: 6Continuingoperations (13.3)pDiscontinuedoperations 80.2p 66.9p

Diluted(loss)/earningspershare: 6Continuingoperations (13.3)pDiscontinuedoperations 80.2p 66.9p


Sixmonths Sixmonths ended ended Yearended 30June 30June 31December 2007 2006 2006 Note £million £million £million

Exchangedifferencesontranslationofforeignsubsidiaries 12.2 (14.8) (37.4)Actuarialgainsondefinedbenefitpensionschemes – – 2.9Groupshareofactuarialgainsondefinedbenefitpensionschemewithinassociate(netoftax) – – 1.8Net(loss)/gainonhedgesofnetinvestmentinforeignsubsidiaries (2.6) 4.2 16.4Cashflowhedges: Effectiveportionofchangesinfairvalue 1.8 5.7 12.5 Transferredtotheincomestatement (1.2) – – Groupshareofchangesinfairvalueofcashflowhedges withinjointventureentities(netoftax) 9.8 6.0 5.0Taxinrespectofitemsrecogniseddirectlyinequity (0.2) (2.0) (6.5)Netincome/(expense)recogniseddirectlyinequity 19.8 (0.9) (5.3)Profit/(loss)fortheperiod 51.3 (41.3) 219.2Totalrecognisedincomeandexpensefortheperiod 71.1 (42.2) 213.9

Attributableto: Equityholdersofthecompany 8 71.1 (43.3) 211.3 Minorityinterests – 1.1 2.6Totalrecognisedincomeandexpensefortheperiod 71.1 (42.2) 213.9

Yearended31December2006 Exceptional items Exceptional arisingfrom profits/(costs) litigationand ofexiting Before separation businesses exceptional costs andmarkets items (note3) (note3) Total Note £million £million £million £million

ContinuingoperationsRevenue 2 2,121.6 – – 2,121.6Costofsales (1,867.0) (17.6) (4.3) (1,888.9)Grossprofit/(loss) 254.6 (17.6) (4.3) 232.7Administrativeexpenses (171.7) – – (171.7)Lossonbusinessdisposalsandclosures – (39.1) (41.8) (80.9)Profit/(loss)beforenetfinancingcosts 82.9 (56.7) (46.1) (19.9)Financialincome 9.3 – – 9.3Financialexpense (16.3) – – (16.3) Netfinancingcosts (7.0) – – (7.0)Shareofpost-taxresultsofjointventuresandassociates (0.1) – – (0.1)Profit/(loss)beforeincometax 2 75.8 (56.7) (46.1) (27.0)Incometax 4 (22.5) 4.9 2.4 (15.2)Profit/(loss)fortheperiodfromcontinuingoperations 53.3 (51.8) (43.7) (42.2)Profit/(loss)fortheperiodfromdiscontinuedoperations 5 0.5 (16.4) 277.3 261.4Profit/(loss)fortheperiod 53.8 (68.2) 233.6 219.2

Attributableto:Equityholdersofthecompany 218.1Minorityinterests 1.1 219.2

Basic(loss)/earningspershare: 6Continuingoperations (13.3)pDiscontinuedoperations 80.2p 66.9p

Diluted(loss)/earningspershare: 6Continuingoperations (13.3)pDiscontinuedoperations 80.2p 66.9p

Consolidated statement of recognised income and expense

ConsolidatedstatementofrecognisedincomeandexpenseAMECplcinterimreport2007 17


www.amec.com

30June 30June 31December 2007 2006 2006 Note £million £million £million

ASSETSNon-currentassetsProperty,plantandequipment 60.3 90.0 73.3Intangibleassets 203.1 215.5 197.6Interestsinjointventuresandassociates 15.7 87.2 85.2Otherinvestments 0.8 1.4 0.9Retirementbenefitassets 110.6 82.0 105.6Deferredtaxassets 9.9 66.7 16.4Totalnon-currentassets 400.4 542.8 479.0

CurrentassetsInventories 9.2 66.1 47.7Tradeandotherreceivables 569.1 942.9 806.3Currenttaxreceivable – 3.4 –Derivativefinancialinstruments 7.3 1.3 9.0Cashandcashequivalents 452.4 256.0 375.4Assetsclassifiedasheldforsale 466.9 1,335.7 107.1Totalcurrentassets 1,504.9 2,605.4 1,345.5Totalassets 1,905.3 3,148.2 1,824.5

LIABILITIESCurrentliabilitiesBankloansandoverdrafts (8.1) (32.3) (13.6)Tradeandotherpayables (616.2) (970.3) (1,021.4)Derivativefinancialinstruments (1.9) (7.3) (1.9)Currenttaxpayable (23.2) – (19.3)Liabilitiesclassifiedasheldforsale (533.2) (1,037.9) (69.5)Totalcurrentliabilities (1,182.6) (2,047.8) (1,125.7)

Non-currentliabilitiesBankloans – (688.1) (6.9)Tradeandotherpayables – (32.0) –Retirementbenefitliabilities (13.9) (9.9) (13.0)Deferredtaxliabilities (10.8) (85.3) (10.3)Provisions (158.5) (27.8) (173.8)Totalnon-currentliabilities (183.2) (843.1) (204.0)Totalliabilities (1,365.8) (2,890.9) (1,329.7)Netassets 2 539.5 257.3 494.8

EQUITYSharecapital 168.4 166.7 166.8Sharepremiumaccount 98.0 90.1 90.7Hedgingandtranslationreserves 6.2 (8.9) (20.5)Capitalredemptionreserve 17.2 17.2 17.2Retainedearnings 254.5 (10.1) 238.9Amountsrecognisedinequityrelatingtoassetsandliabilitiesheldforsale (5.6) 0.9 0.9Totalequityattributabletoequityholdersoftheparent 538.7 255.9 494.0Minorityinterests 0.8 1.4 0.8Totalequity 539.5 257.3 494.8

Consolidated balance sheet

18 AMECplcinterimreport2007Consolidatedbalancesheet


30June 30June 31December 2007 2006 2006 Note £million £million £million

ASSETSNon-currentassetsProperty,plantandequipment 60.3 90.0 73.3Intangibleassets 203.1 215.5 197.6Interestsinjointventuresandassociates 15.7 87.2 85.2Otherinvestments 0.8 1.4 0.9Retirementbenefitassets 110.6 82.0 105.6Deferredtaxassets 9.9 66.7 16.4Totalnon-currentassets 400.4 542.8 479.0

CurrentassetsInventories 9.2 66.1 47.7Tradeandotherreceivables 569.1 942.9 806.3Currenttaxreceivable – 3.4 –Derivativefinancialinstruments 7.3 1.3 9.0Cashandcashequivalents 452.4 256.0 375.4Assetsclassifiedasheldforsale 466.9 1,335.7 107.1Totalcurrentassets 1,504.9 2,605.4 1,345.5Totalassets 1,905.3 3,148.2 1,824.5

LIABILITIESCurrentliabilitiesBankloansandoverdrafts (8.1) (32.3) (13.6)Tradeandotherpayables (616.2) (970.3) (1,021.4)Derivativefinancialinstruments (1.9) (7.3) (1.9)Currenttaxpayable (23.2) – (19.3)Liabilitiesclassifiedasheldforsale (533.2) (1,037.9) (69.5)Totalcurrentliabilities (1,182.6) (2,047.8) (1,125.7)

Non-currentliabilitiesBankloans – (688.1) (6.9)Tradeandotherpayables – (32.0) –Retirementbenefitliabilities (13.9) (9.9) (13.0)Deferredtaxliabilities (10.8) (85.3) (10.3)Provisions (158.5) (27.8) (173.8)Totalnon-currentliabilities (183.2) (843.1) (204.0)Totalliabilities (1,365.8) (2,890.9) (1,329.7)Netassets 2 539.5 257.3 494.8

EQUITYSharecapital 168.4 166.7 166.8Sharepremiumaccount 98.0 90.1 90.7Hedgingandtranslationreserves 6.2 (8.9) (20.5)Capitalredemptionreserve 17.2 17.2 17.2Retainedearnings 254.5 (10.1) 238.9Amountsrecognisedinequityrelatingtoassetsandliabilitiesheldforsale (5.6) 0.9 0.9Totalequityattributabletoequityholdersoftheparent 538.7 255.9 494.0Minorityinterests 0.8 1.4 0.8Totalequity 539.5 257.3 494.8

Sixmonths Sixmonths Yearended ended ended 31December 30June2007 30June2006 2006 Note £million £million £million

CashflowfromoperatingactivitiesProfit/(loss)beforeincometaxfromcontinuingoperations 66.9 (24.7) (27.0)Profit/(loss)beforeincometaxfromdiscontinuedoperations 5 8.7 (15.5) 241.3Profit/(loss)beforeincometax 75.6 (40.2) 214.3Financialincome (14.9) (12.8) (18.5)Financialexpense 8.7 25.8 28.3Shareofpost-taxresultsofjointventuresandassociates (4.4) (4.9) (11.7)Intangibleamortisation 1.2 4.7 6.2Depreciation 11.1 21.4 35.1Profitondisposalofsubsidiaries (12.1) – (301.8)Profitondisposalofproperty,plantandequipment (1.0) (1.6) (1.6)Impairmentofnoncurrentassets 1.8 – 7.1Equitysettledshare-basedpayments 5.4 0.1 (2.3) 71.4 (7.5) (44.9)Decrease/(increase)ininventories 4.7 (6.1) 12.7(Increase)/decreaseintradeandotherreceivables (27.4) 51.1 112.3Increase/(decrease)intradeandotherpayablesandprovisions 7.1 (154.9) 21.6Cashgenerated/(absorbed)fromoperations 55.8 (117.4) 101.7Interestpaid (4.1) (25.1) (36.8)Tax(paid)/received (6.1) (2.6) 9.5Netcashflowfromoperatingactivities 45.6 (145.1) 74.4CashflowfrominvestingactivitiesAcquisitionofsubsidiaries,netofcashacquired – (14.9) (15.0)Acquisitionofjointventuresandassociates (6.1) (16.0) (23.5)Purchaseofproperty,plantandequipment (7.6) (24.3) (38.2)Purchaseofintangibleassets (0.1) (2.2) (0.6)Disposalofsubsidiaries(netofcashdisposedof) 23.6 – 627.4Disposalofjointventuresandassociates 20.9 5.3 27.2Disposalofproperty,plantandequipment 2.2 21.0 26.5Interestreceived 9.3 11.8 19.0Dividendsreceivedfromjointventuresandassociates 1.9 1.8 3.2Netcashflowfrominvestingactivities 44.1 (17.5) 626.0Netcashflowbeforefinancingactivities 89.7 (162.6) 700.4CashflowfromfinancingactivitiesProceedsfromnewloans – 160.9 –Repaymentofloans (4.4) – (549.9)Dividendspaid (13.9) (13.0) (37.5)Proceedsfromsharesissued 8.9 0.9 1.6Acquisitionoftreasuryshares (14.7) – –DisposalofsharesbytrusteesofthePerformanceSharePlan2002 – – 2.2Netcashflowfromfinancingactivities (24.1) 148.8 (583.6)Increase/(decrease)incashandcashequivalents 65.6 (13.8) 116.8Cashandcashequivalentsasatthebeginningoftheperiod 406.4 332.7 332.7Exchangelossesoncashandcashequivalents (1.6) (3.8) (12.8)Cashofformersubsidiaryequityaccountedfromthebeginningoftheperiod – (9.3) (30.3)Cashandcashequivalentsasattheendoftheperiod 470.4 305.8 406.4Cashandcashequivalentsconsistof:Cashatbankandinhand 431.2 232.0 336.2Short-terminvestments 21.2 24.0 39.2 452.4 256.0 375.4Overdrafts (8.1) (19.2) (1.2) 444.3 236.8 374.2Cashandcashequivalents(includingoverdrafts)classifiedasheldforsale 9 26.1 69.0 32.2Cashandcashequivalents 470.4 305.8 406.4

Consolidated cash flow statement

ConsolidatedcashflowstatementAMECplcinterimreport2007 19


www.amec.com20 AMECplcinterimreport2007Notestotheaccounts

Notes to the accounts

n 1 Preparation of interim resultsThisinterimfinancialinformationhasbeenpreparedapplyingtheaccountingpoliciesandpresentationthatwereappliedinthepreparationofthecompany’spublishedconsolidatedaccountsfortheyearended31December2006.

Thenon-coreBuiltEnvironmentbusinessesaretreatedasdiscontinuedoperationsin2007.Thesegmentalresultsforthesixmonthsended30June2006andtheyearended31December2006havebeenrestatedtoreflectthischangeinaccountingtreatmentandsomeminorbusinessrestructuring.Theserestatedresultswereincludedinthetradingupdateissuedon25June2007.OtherdiscontinuedactivitiesincludepipelineconstructionandAMECSPIE.

Thecomparativefiguresfortheyearended31December2006arenotthestatutoryaccountsforthatfinancialyear.Thoseaccountshavebeenreportedonbytheauditorsanddeliveredtotheregistrarofcompanies.Thereportoftheauditorswasunqualifiedanddidnotcontainstatementsundersection237(2)or(3)oftheCompaniesAct1985.

During2006IFRIC12onserviceconcessionarrangementswasissued.Thisinterpretationiseffectivewitheffectfrom1January2008,butthishasyettobeadoptedforuseintheEU.Inviewofthis,thedirectorsconsiderthatitremainsappropriatetoapplytheapproachsetoutinAppendixNoteFoftheUKFinancialReportingStandard5“Reportingthesubstanceoftransactions”indeterminingtheaccountingmodeltobeappliedtoAMEC’sPPPactivities.Thisinvolvesapplyinga“risksandrewards”testtodeterminewhetheranon-currentassetorfinancedebtormodelshouldbefollowed.ThedirectorsdonotexpectthisaccountingpolicytobesignificantlydifferenttothatunderIFRIC12.

n 2 Analysis of revenue, profit before exceptional items and income tax and net assets of continuing operations

Revenue Profit Sixmonths Sixmonths Sixmonths Sixmonths ended ended Yearended ended ended Yearended 30June 30June 31December 30June 30June 31December 2007 2006 2006 2007 2006 2006 £million £million £million £million £million £million

Classofbusiness:NaturalResources 498.4 452.1 920.9 37.2 26.7 59.1PowerandProcess 492.3 366.0 797.8 18.6 10.1 18.5EarthandEnvironmental 140.1 151.6 304.4 8.9 6.7 17.7Investmentsandotheractivities 31.2 59.5 122.6 0.3 (2.2) 12.8 1,162.0 1,029.2 2,145.7 65.0 41.3 108.1Internalrevenue (9.1) (19.9) (24.1) – – –Corporatecosts – – – (21.3) (10.3) (21.4) 1,152.9 1,009.3 2,121.6 43.7 31.0 86.7Intangibleamortisation – – – (1.2) (2.8) (3.6)Netfinancingincome/(costs) – – – 4.7 (9.4) (7.0)Shareoftaxofjointventures andassociates – – – (0.2) (0.4) (0.3) 1,152.9 1,009.3 2,121.6 47.0 18.4 75.8


NotestotheaccountsAMECplcinterimreport2007 21

n 1 Preparation of interim resultsThisinterimfinancialinformationhasbeenpreparedapplyingtheaccountingpoliciesandpresentationthatwereappliedinthepreparationofthecompany’spublishedconsolidatedaccountsfortheyearended31December2006.

Thenon-coreBuiltEnvironmentbusinessesaretreatedasdiscontinuedoperationsin2007.Thesegmentalresultsforthesixmonthsended30June2006andtheyearended31December2006havebeenrestatedtoreflectthischangeinaccountingtreatmentandsomeminorbusinessrestructuring.Theserestatedresultswereincludedinthetradingupdateissuedon25June2007.OtherdiscontinuedactivitiesincludepipelineconstructionandAMECSPIE.

Thecomparativefiguresfortheyearended31December2006arenotthestatutoryaccountsforthatfinancialyear.Thoseaccountshavebeenreportedonbytheauditorsanddeliveredtotheregistrarofcompanies.Thereportoftheauditorswasunqualifiedanddidnotcontainstatementsundersection237(2)or(3)oftheCompaniesAct1985.

During2006IFRIC12onserviceconcessionarrangementswasissued.Thisinterpretationiseffectivewitheffectfrom1January2008,butthishasyettobeadoptedforuseintheEU.Inviewofthis,thedirectorsconsiderthatitremainsappropriatetoapplytheapproachsetoutinAppendixNoteFoftheUKFinancialReportingStandard5“Reportingthesubstanceoftransactions”indeterminingtheaccountingmodeltobeappliedtoAMEC’sPPPactivities.Thisinvolvesapplyinga“risksandrewards”testtodeterminewhetheranon-currentassetorfinancedebtormodelshouldbefollowed.ThedirectorsdonotexpectthisaccountingpolicytobesignificantlydifferenttothatunderIFRIC12.

n 2 Analysis of revenue, profit before exceptional items and income tax and net assets of continuing operations


Classofbusiness:NaturalResources 498.4 452.1 920.9 37.2 26.7 59.1PowerandProcess 492.3 366.0 797.8 18.6 10.1 18.5EarthandEnvironmental 140.1 151.6 304.4 8.9 6.7 17.7Investmentsandotheractivities 31.2 59.5 122.6 0.3 (2.2) 12.8 1,162.0 1,029.2 2,145.7 65.0 41.3 108.1Internalrevenue (9.1) (19.9) (24.1) – – –Corporatecosts – – – (21.3) (10.3) (21.4) 1,152.9 1,009.3 2,121.6 43.7 31.0 86.7Intangibleamortisation – – – (1.2) (2.8) (3.6)Netfinancingincome/(costs) – – – 4.7 (9.4) (7.0)Shareoftaxofjointventures andassociates – – – (0.2) (0.4) (0.3) 1,152.9 1,009.3 2,121.6 47.0 18.4 75.8

n 2 Analysis of revenue, profit before exceptional items and income tax and net assets of continuing operations continued

Netassets 30June 30June 31December 2007 2006 2006 £million £million £million

Classofbusiness:NaturalResources 57.5 125.9 71.3PowerandProcess (39.1) (1.9) (55.2)EarthandEnvironmental 36.5 29.6 19.0Investmentsandotheractivities (117.3) 0.1 (109.4)Discontinuedoperations – 49.2 (60.0) (62.4) 202.9 (134.3)Intangibleassets 203.1 215.5 197.6Netcash/(debt) 444.3 (464.4) 354.9Unallocatednetassets 20.8 5.5 39.0Assetsandliabilitiesclassifiedasheldforsale (66.3) 297.8 37.6 539.5 257.3 494.8


Geographicalorigin:UnitedKingdom 508.1 377.6 844.5 25.1 6.3 30.0RestofEurope 46.1 27.3 55.4 4.2 3.8 5.2Americas 537.4 455.9 1,018.6 34.1 24.2 58.6Restoftheworld 61.3 148.5 203.1 1.6 7.0 14.3 1,152.9 1,009.3 2,121.6 65.0 41.3 108.1Corporatecosts – – – (21.3) (10.3) (21.4) 1,152.9 1,009.3 2,121.6 43.7 31.0 86.7Intangibleamortisation – – – (1.2) (2.8) (3.6)Netfinancingincome/(costs) – – – 4.7 (9.4) (7.0)Shareoftaxofjointventuresandassociates – – – (0.2) (0.4) (0.3) 1,152.9 1,009.3 2,121.6 47.0 18.4 75.8



Notes to the accountscontinued



Geographicalorigin:UnitedKingdom (24.1) 7.2 (57.0)RestofEurope (62.9) (17.6) (58.8)Americas 0.1 60.8 (6.6)Restoftheworld 24.5 103.3 48.1Discontinuedoperations – 49.2 (60.0) (62.4) 202.9 (134.3)Intangibleassets 203.1 215.5 197.6Netcash/(debt) 444.3 (464.4) 354.9Unallocatednetassets 20.8 5.5 39.0Assetsandliabilitiesclassifiedasheldforsale (66.3) 297.8 37.6Netassets 539.5 257.3 494.8

n 3 Exceptional items Sixmonths Sixmonths Yearended ended ended 31December 30June2007 30June2006 2006 £million £million £million

NaturalResources – – (7.8)PowerandProcess 10.9 (13.0) (17.6)Investmentsandotheractivities 9.0 (30.1) (77.4)Exceptionalitemsofcontinuingoperations 19.9 (43.1) (102.8)Taxationonexceptionalitemsofcontinuingoperations (3.2) 3.9 7.3Exceptionalitemsofdiscontinuedoperations(posttax) (3.6) (25.7) 260.9Post-taxexceptionalitems 13.1 (64.9) 165.4

Exceptionalchargesweremadein2005and2006.ThesechargesincludedcostsrelatingtoAMEC’sexitfromcertainmarkets.Followingsettlementofcertaindisputes,provisionshavenowbeenreleasedtotheextentnolongerrequired.

Fiveperipheralbusinessesweresoldintheperiodresultinginfurtherexceptionalgains.

Exceptionalitemsforthesixmonthsended30June2007arefurtheranalysedasfollows: Other Gain/(loss) exceptional ondisposals items Total £million £million £million

Continuingoperations 16.6 3.3 19.9Discontinuedoperations (4.5) 4.7 0.2Profitbeforetax 12.1 8.0 20.1Tax (2.4) (4.6) (7.0)Profitaftertax 9.7 3.4 13.1

n 4 Income tax Incometaxontheprofitbeforeexceptionalitemsandintangibleamortisationforthesixmonthsended30June2007isbasedonaneffectiverateof29.0percent,whichhasbeencalculatedbyreferencetotheprojectedchargeforthefullyear.





Geographicalorigin:UnitedKingdom (24.1) 7.2 (57.0)RestofEurope (62.9) (17.6) (58.8)Americas 0.1 60.8 (6.6)Restoftheworld 24.5 103.3 48.1Discontinuedoperations – 49.2 (60.0) (62.4) 202.9 (134.3)Intangibleassets 203.1 215.5 197.6Netcash/(debt) 444.3 (464.4) 354.9Unallocatednetassets 20.8 5.5 39.0Assetsandliabilitiesclassifiedasheldforsale (66.3) 297.8 37.6Netassets 539.5 257.3 494.8

n 3 Exceptional items Sixmonths Sixmonths Yearended ended ended 31December 30June2007 30June2006 2006 £million £million £million

NaturalResources – – (7.8)PowerandProcess 10.9 (13.0) (17.6)Investmentsandotheractivities 9.0 (30.1) (77.4)Exceptionalitemsofcontinuingoperations 19.9 (43.1) (102.8)Taxationonexceptionalitemsofcontinuingoperations (3.2) 3.9 7.3Exceptionalitemsofdiscontinuedoperations(posttax) (3.6) (25.7) 260.9Post-taxexceptionalitems 13.1 (64.9) 165.4

Exceptionalchargesweremadein2005and2006.ThesechargesincludedcostsrelatingtoAMEC’sexitfromcertainmarkets.Followingsettlementofcertaindisputes,provisionshavenowbeenreleasedtotheextentnolongerrequired.

Fiveperipheralbusinessesweresoldintheperiodresultinginfurtherexceptionalgains.

Exceptionalitemsforthesixmonthsended30June2007arefurtheranalysedasfollows: Other Gain/(loss) exceptional ondisposals items Total £million £million £million

Continuingoperations 16.6 3.3 19.9Discontinuedoperations (4.5) 4.7 0.2Profitbeforetax 12.1 8.0 20.1Tax (2.4) (4.6) (7.0)Profitaftertax 9.7 3.4 13.1

n 4 Income tax Incometaxontheprofitbeforeexceptionalitemsandintangibleamortisationforthesixmonthsended30June2007isbasedonaneffectiverateof29.0percent,whichhasbeencalculatedbyreferencetotheprojectedchargeforthefullyear.

n 5 Profit/(loss) for the period from discontinued operationsThenon-coreBuiltEnvironmentbusinessesaretreatedasdiscontinuedoperationsin2007.OtherdiscontinuedactivitiesincludepipelineconstructionandAMECSPIE.

Theresultsofdiscontinuedoperationswereasfollows: Sixmonths Sixmonths Yearended ended ended 31December 30June2007 30June2006 2006 £million £million £million

Revenue 571.7 1,639.2 2,431.6Costofsalesandnetoperatingexpenses (563.2) (1,616.7) (2,422.4) 8.5 22.5 9.2Intangibleamortisation – (1.9) (2.6)Profitbeforeincometax 8.5 20.6 6.6Attributabletax (3.5) (9.3) (6.1)Profitafterincometax 5.0 11.3 0.5Exceptionalitems 4.7 (36.1) (67.1)Attributabletaxonexceptionalitems (1.4) 10.4 16.5(Loss)/profitondisposal (4.5) – 301.8Attributabletaxon(loss)/profitondisposal (2.4) – 9.7Profit/(loss)fortheperiodfromdiscontinuedoperations 1.4 (14.4) 261.4

Thetotalprofit/(loss)fortheperiodfromdiscontinuedoperationsisanalysedasfollows: Sixmonths Sixmonths Yearended ended ended 31December 30June2007 30June2006 2006 £million £million £million

Profitbeforeexceptionalitemsandtax 8.5 20.6 6.6Pre-taxexceptionalitems 4.7 (36.1) (67.1)Pre-taxexceptional(loss)/profitondisposal (4.5) – 301.8Pre-taxprofit/(loss) 8.7 (15.5) 241.3Tax (7.3) 1.1 20.1Profit/(loss)fortheperiodfromdiscontinuedoperations 1.4 (14.4) 261.4

n 6 Earnings per shareTotalbasicearnings/(loss)pershareisshownonthefaceoftheincomestatement.ThecalculationoftheaveragenumberofsharesinissuehasbeenmadehavingdeductedthesharesheldbythetrusteesofthePerformanceSharePlan2002,thoseheldbythequalifyingemployeeshareownershiptrustandthoseheldintreasurybythecompany. Sixmonthsended30June2007 Weighted average shares Earnings Earnings number pershare £million million pence

Basicearningsfromcontinuingoperations 49.9 328.8 15.2Shareoptions – 4.0 (0.2)Employeeshareandincentiveschemes – 5.9 (0.3)Dilutedearningsfromcontinuingoperations 49.9 338.7 14.7

Basicearningsfromdiscontinuedoperations 1.4 328.8 0.4Shareoptions – 4.0 –Employeeshareandincentiveschemes – 5.9 –Dilutedearningsfromdiscontinuedoperations 1.4 338.7 0.4



Notes to the accountscontinued

n 6 Earnings per share continued Sixmonthsended30June2006 Yearended31December2006 Weighted Weighted average average shares Earnings shares Earnings Earnings number pershare Earnings number pershare £million million pence £million million pence

Basicanddilutedearningsfromcontinuingoperations (26.7) 325.4 (8.2) (43.3) 325.9 (13.3)

Basicearningsfromdiscontinuedoperations (14.4) 325.4 (4.4) 261.4 325.9 80.2

Thebasicanddilutedlossof£26.7millionforthesixmonthsended30June2006isthelossfortheperiodforcontinuingoperationsof£26.9millionlessthelossattributabletominorityinterestof£0.2million.

Thebasicanddilutedlossof£43.3millionfortheyearended31December2006isthelossfortheyearforcontinuingoperationsof£42.2millionlesstheprofitattributabletominorityinterestof£1.1million.

Forthesixmonthsended30June2006andtheyearended31December2006,lossespersharefromcontinuingoperationshavebeencalculatedonlossesof£26.7millionand£43.3millionrespectively,andasaresulttherearenodilutiveordinaryshares.Inordertoappreciatetheeffectsofthecontinuinganddiscontinuedoperationsandexceptionalitemsonthereportedperformance,additionalcalculationsofearningspersharearepresented.

Sixmonthsended30June2007 Sixmonthsended30June2006 Weighted Weighted average average shares Earnings shares Earnings Earnings number pershare Earnings number pershare £million million pence £million million pence

Basicearnings/(loss)fromcontinuingoperations 49.9 328.8 15.2 (26.7) 325.4 (8.2)Exceptionalitems (16.7) – (5.1) 39.2 – 12.0Intangibleamortisation 1.2 – 0.4 2.8 – 0.9Basicearningsbeforeexceptionalitemsandintangibleamortisation 34.4 328.8 10.5 15.3 325.4 4.7Shareoptions – 4.0 (0.1) – 4.8 (0.1)Employeeshareandincentiveschemes – 5.9 (0.2) – 6.8 (0.1)Dilutedearningsbeforeexceptionalitemsandintangibleamortisation 34.4 338.7 10.2 15.3 337.0 4.5

n 7 DividendsAfterthebalancesheetdatethedirectorsdeclaredadividendof4.6pencepersharepayableon2January2008toequityholdersontheregisteratthecloseofbusinesson23November2007.Thedividendhasnotbeenprovidedforandtherearenoincometaxconsequencesforthecompany.



n 6 Earnings per share continued Sixmonthsended30June2006 Yearended31December2006 Weighted Weighted average average shares Earnings shares Earnings Earnings number pershare Earnings number pershare £million million pence £million million pence

Basicanddilutedearningsfromcontinuingoperations (26.7) 325.4 (8.2) (43.3) 325.9 (13.3)

Basicearningsfromdiscontinuedoperations (14.4) 325.4 (4.4) 261.4 325.9 80.2

Thebasicanddilutedlossof£26.7millionforthesixmonthsended30June2006isthelossfortheperiodforcontinuingoperationsof£26.9millionlessthelossattributabletominorityinterestof£0.2million.

Thebasicanddilutedlossof£43.3millionfortheyearended31December2006isthelossfortheyearforcontinuingoperationsof£42.2millionlesstheprofitattributabletominorityinterestof£1.1million.

Forthesixmonthsended30June2006andtheyearended31December2006,lossespersharefromcontinuingoperationshavebeencalculatedonlossesof£26.7millionand£43.3millionrespectively,andasaresulttherearenodilutiveordinaryshares.Inordertoappreciatetheeffectsofthecontinuinganddiscontinuedoperationsandexceptionalitemsonthereportedperformance,additionalcalculationsofearningspersharearepresented.

Sixmonthsended30June2007 Sixmonthsended30June2006 Weighted Weighted average average shares Earnings shares Earnings Earnings number pershare Earnings number pershare £million million pence £million million pence

Basicearnings/(loss)fromcontinuingoperations 49.9 328.8 15.2 (26.7) 325.4 (8.2)Exceptionalitems (16.7) – (5.1) 39.2 – 12.0Intangibleamortisation 1.2 – 0.4 2.8 – 0.9Basicearningsbeforeexceptionalitemsandintangibleamortisation 34.4 328.8 10.5 15.3 325.4 4.7Shareoptions – 4.0 (0.1) – 4.8 (0.1)Employeeshareandincentiveschemes – 5.9 (0.2) – 6.8 (0.1)Dilutedearningsbeforeexceptionalitemsandintangibleamortisation 34.4 338.7 10.2 15.3 337.0 4.5

n 7 DividendsAfterthebalancesheetdatethedirectorsdeclaredadividendof4.6pencepersharepayableon2January2008toequityholdersontheregisteratthecloseofbusinesson23November2007.Thedividendhasnotbeenprovidedforandtherearenoincometaxconsequencesforthecompany.

n 8 Reconciliation of movements in total equity Sixmonths Sixmonths ended ended Yearended 30June 30June 31December 2007 2006 2006 £million £million £million

Totalrecognisedincomeandexpenseattributabletoequityholdersoftheparent 71.1 (43.3) 211.3Dividends (26.4) (24.4) (38.3)Sharesissued 8.9 0.9 1.6Equitysettledshare-basedpayments 5.4 0.1 (2.3)DisposalofsharesbytrusteesofthePerformanceSharePlan2002 – – 2.2Acquisitionoftreasuryshares (14.7) – –Cumulativegainsandlossestransferredfromthehedgingandtranslationreservesondisposalofsubsidiaries 0.4 – (3.1)Netincrease/(decrease)intotalequity 44.7 (66.7) 171.4Totalequityasatbeginningoftheperiod 494.0 322.6 322.6Totalequityasatendoftheperiodattributabletoequityholdersoftheparent 538.7 255.9 494.0

n 9 Analysis of net cash/(debt) 30June 30June 31December 2007 2006 2006 £million £million £million

Cashatbankandinhand 431.2 232.0 336.2Short-terminvestments 21.2 24.0 39.2Cashandcashequivalentsdisclosedonthebalancesheet 452.4 256.0 375.4Overdrafts (8.1) (19.2) (1.2) 444.3 236.8 374.2Cashandcashequivalents(includingoverdrafts)classifiedasheldforsale 26.1 69.0 32.2Totalcashandcashequivalents 470.4 305.8 406.4Currentdebt – (13.1) (12.4)Non-currentdebt – (688.1) (6.9)Debtclassifiedasheldforsale (14.9) (32.6) –Netcash/(debt)asatendoftheperiod 455.5 (428.0) 387.1

Netcash/(debt)isanalysedbetweentheamountdisclosedinthebalancesheetandamountsclassifiedasheldforsaleasfollows: 30June 30June 31December 2007 2006 2006 £million £million £million

Netcash/(debt)disclosedonthebalancesheet 444.3 (464.4) 354.9Netcashclassifiedasheldforsale 11.2 36.4 32.2Totalnetcash/(debt)asattheendoftheperiod 455.5 (428.0) 387.1


www.amec.com

n IntroductionWehavebeeninstructedbythecompanytoreviewthefinancialinformationforthesixmonthsended30June2007whichcomprisestheConsolidatedIncomeStatement,ConsolidatedStatementofRecognisedIncomeandExpense,ConsolidatedBalanceSheet,ConsolidatedCashFlowStatementandtherelatednotes.Wehavereadtheotherinformationcontainedintheinterimreportandconsideredwhetheritcontainsanyapparentmisstatementsormaterialinconsistencieswiththefinancialinformation.

ThisreportismadesolelytothecompanyinaccordancewiththetermsofourengagementtoassistthecompanyinmeetingtherequirementsoftheListingRulesoftheFinancialServicesAuthority.Ourreviewhasbeenundertakensothatwemightstatetothecompanythosematterswearerequiredtostatetoitinthisreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecompanyforourreviewwork,forthisreport,orfortheconclusionswehavereached.

n Directors’ responsibilitiesTheinterimreport,includingthefinancialinformationcontainedtherein,istheresponsibilityof,andhasbeenapprovedby,thedirectors.ThedirectorsareresponsibleforpreparingtheinterimreportinaccordancewiththeListingRulesoftheFinancialServicesAuthoritywhichrequirethattheaccountingpoliciesandpresentationappliedtotheinterimfiguresshouldbeconsistentwiththoseappliedinpreparingtheprecedingannualaccountsexceptwhereanychanges,andthereasonsforthem,aredisclosed.

n Review work performedWeconductedourreviewinaccordancewithguidancecontainedinBulletin1999/4issuedbytheAuditingPracticesBoardfortheuseintheUK.Areviewconsistsprincipallyofmakingenquiriesofgroupmanagementandapplyinganalyticalprocedurestothefinancialinformationandunderlyingfinancialdataand,basedthereon,assessingwhethertheaccountingpoliciesandpresentationhavebeenconsistentlyappliedunlessotherwisedisclosed.Areviewexcludesauditproceduressuchastestsofcontrolsandverificationofassets,liabilitiesandtransactions.ItissubstantiallylessinscopethananauditperformedinaccordancewithInternationalStatementsofAuditing(UKandIreland)andthereforeprovidesalowerlevelofassurancethananaudit.Accordingly,wedonotexpressanauditopiniononthefinancialinformation.

n Review conclusion Onthebasisofourreviewwearenotawareofanymaterialmodificationsthatshouldbemadetothefinancialinformationaspresentedforthesixmonthsended30June2007.

KPMG Audit Plc CharteredAccountantsManchester6September2007

Independent review report by KPMG Audit Plc to AMEC plc

26 AMECplcinterimreport2007Independentreviewreport


Shareholder information

n Financial calendarMarchPreliminaryannouncementfortheyearended31December.

AprilAnnualreportandaccountsfortheyearended31December.

MayAnnualgeneralmeeting.

SeptemberInterimreportforthehalfyearended30June.

InterimandpreliminaryannouncementsnotifiedtotheLondonStockExchangeareavailableontheinternetatwww.amec.com.

n Payment of dividendsInterimordinarydividendannouncedinSeptemberandpaidinJanuary.

FinalordinarydividendannouncedinMarchandpaidinJuly.

ShareholderswhodonothavedividendpaymentsmadedirectlyintotheirbankorbuildingsocietyaccountsthroughtheBankersAutomatedClearingSystem(“BACS”)maydosobycontactingthecompany’sregistrar,CapitaRegistrars.

n Dividend reinvestment planAdividendreinvestmentplan(“DRIP”)isavailablefortheconvenienceofshareholderswhowouldpreferthecompanytoutilisetheirdividendsforthepurchase,ontheirbehalf,ofadditionalsharesofthecompanyinsteadofreceivingcashdividends.

TheDRIPprovidesforsharestobepurchasedinthemarketon,orassoonasreasonablypracticablethereafter,anydividendpaymentdateatthepricethenprevailinginthemarket.FurtherdetailsoftheDRIPmaybeobtainedfrom:

CapitaRegistrarsTheRegistry,34BeckenhamRoad,Beckenham,KentBR34TU,UnitedKingdomTel:+44(0)8701623100E-mail:ssd@capitaregistrars.comorvisitthewebsiteatwww.capitaregistrars.com

n Electronic communications ElectronicshareholdercommunicationRecentchangesinthelawmeanthatitisnowmuchsimplerforustocommunicatewithourshareholderselectronically.

Inthepastweproducedthousandsofprintedreportswhichwesenttoourshareholders.Howeverprinteddocumentshaveabiggercarbonfootprintthanelectroniconesbecauseoftheenergyandmaterialsusedtocreatethemaswellastheenergyusedtodistributethem.Wearekeentohelpyouhelpusreduceourcarbonfootprintinanywaywecan.

Asmanyofyouknow,wehavepublishedourannualandinterimreportsonourwebsite(www.amec.com/investors)formanyyears.Fromnowon,wewillpublishannualaccounts,noticesofshareholdermeetingsandanyotheressentialshareholderinformationonourwebsitetoo.Forshareholderswhoagree,thecompanywebsitewillbethemainwayinwhichtheygettheirshareholderinformation.

Atourannualgeneralmeetingon16May2007,ourshareholdersunanimouslyagreedtoproposedchangesinthewaywecommunicate.Followingthisagreement,wehaveincludedaletterwiththis2007InterimReportmailing,toexplainhowourelectroniccommunicationswillworkinthefutureandtogiveeveryshareholderthechancetohelpus.

Followingthiselectroniccommunicationpathhelpstomakeusamoresustainablecompany,cuttingproductionanddistributioncosts,reducingwasteandpollution,reducingcarbondioxideandothergreenhousegasemissions.Allofwhichmakeusabettercompanytoinvestin.

ShareholderinformationAMECplcinterimreport2007 27


www.amec.com

ElectronicshareholderinformationAMEC’swebsitehasafacilitywherebyshareholderscanlinktothecompany’sregistrar,CapitaRegistrars,viaitswebsiteinordertogainaccesstogeneralshareholderinformationaswellaspersonalshareholdingdetails.Ifyouwishtoaccessdetailsofyourpersonalshareholdingyouwillneedyourinvestorcode,whichisprintedinthebottomright-handcornerofyourAMECsharecertificatesanddividendtaxvouchers.

Toaccesstheseservices:

1 Selectthe“Investors”homepageatwww.amec.com

2 Select“Shareholderinformation”fromthemainmenu.

3 Selectthelinkto“Shareholderinformation”intheElectronicShareholderServicessection.

4 FollowtheinstructionsattheCapitaRegistrarswebsite.

Ifyouhaveanyquestionsaboutelectronicshareholderinformation,contactCapitaRegistrarson+44(0)8701623100,visittheirwebsiteatwww.capitaregistrars.comore-mailatssd@capitaregistrars.com

n Registered officeAMECplcSandiwayHouse,Hartford,Northwich,CheshireCW82YA,UnitedKingdomRegisteredinEnglandNo1675285

Shareholder informationcontinued

28 AMECplcinterimreport2007Shareholderinformation


This report is printed using vegetable based inks on paper made from 55% recycled fibre and is 45% virgin elemental chlorine free from certified sustainable resources.Printed by Taylor Bloxham who are totally committed to reducing the impact printing has on the environment. The printer is registered to the environmental management system ISO 14001 and is accredited with FSC (Forest Stewardship Council) certification number SA-COC-1487.Designed and produced by Corporate Graphic Design Department, Stratford-upon-Avon, UK in collaboration with The Artwork Agency.CGD/Broch1927

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AMEC plc76-78 Old StreetLondon EC1V 9RUUnited Kingdom

Tel: +44 (0)20 7539 5800Fax: +44 (0)20 7539 5900

www.amec.com


Documents

AMEC plc interim report 2007 · Samir Brikho Chief executive Business and financial review These are strong results and demonstrate that AMEC is delivering sustainable improvements