Companies: WSH   

WSP, the engineering consultant recommended by Growth Company Investor at 584p, has buoyed investors’ spirits by unveiling two major developments in Dubai.

Adding to its roster of projects across the buoyant Middle East region, WSP is now working as the structural engineer for the iconic Nakheel Tower, which will be over 1 km in height. Meanwhile, the tall buildings specialist is also ‘playing a major role’ in the US$95bn (£54bn) Jumeira Gardens urban regeneration scheme.

In addition, work is under way for a third Dubai project, the Dubai World Trade Center District, for which WSP is the multidisciplinary design consultant, while the group has even been handed the task of developing Dubai’s ‘Green Building Code’.

Led by CEO Chris Cole, who foresees significant growth in the Middle East, WSP continues to deliver excellent numbers despite market concerns regarding the effects of the credit crunch on parts of its business.

Reflecting its diversity in terms of activities, sectors and regions, results for the half to June showed a 43% rise in adjusted pre-tax profits to £23m, on turnover 40% ahead at £363.5m. Boosted by significant wins in the public sector transport arena and the wider Middle East, WSP reported a record £1.2bn order book.

Based on 2008 forecasts – profits of £48.4m, earnings of 54.4p and a 14.6p dividend – WSP trades on less than six times forward earnings while offering a yield of 4.6%. Decidedly oversold, investors still on board should sit tight and wait for recovery or average down on weakness.

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WSP Group	LSE	£129.57m	205.25p	-7.75p
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