A squeeze on margins hit first half profits at support services play Weeks. However, the company revealed it has won 'a significant contract' to be carried out between now and August. James Crux reports.

Directors at Weeks (WGP) said there has been 'some pressure on margins' as customers have been seeing slower levels of activity. The comments came as it posted a 20 per cent fall in pre-tax profits at £503,000, down from £628,000 last year, for the first half ending September 30.

Encouragingly, sales put on 5.6 per cent to just over £9 million and chairman Dr Alan Weeks explained that an earlier decision to split the company into two identifiable businesses, Weeks Consulting and Weeks Laboratories, had 'been successful and heightened staff morale'.

Followers of the company will also have been buoyed by news of a 'significant contract' win, to be carried out between now and August 2002. Weeks said that the deal would support the board's view that the 'traditionally busier first half of the year will be less pronounced in the current year'.

Kent-based Weeks is a multi-disciplinary engineering and environmental consultant and materials testing house. Its skills include construction materials testing, the solution of landslip and ground water control problems as well as expertise in pavement engineering and subsidence. In October, it snapped up topographical building and hydrographic surveyor Colin Wykes Associates, increasing its expertise in its surveying division.

The board remains confident, insisting that the expansion of its services and offering integrated services to customers will continue to contribute to the growth of the business. Investors were unimpressed, pushing the share price back by over 8 per cent to just 5.5p in early dealings. The stock has traded as high as 8.5p and as low as 4.25p over the past year.