Climate change firm AEA Technology bullish on US prospects news
12 June 2009

UK-based climate change consultant AEA Technology said that President Obama's huge spending programme to tackle recession had boosted prospects for its US business.

The firm's US arm, PPC, had orders on hand worth $2 billion and was in a 'strong position' to benefit. AEA had last year acquired Washington-based Project Performance Corp (PPC), whose clients include the US Environmental Protection Agency (EPA) and the US Department of Energy (DOE).

The US government's $787 billion programme makes significant allocations for climate climate change and energy efficiency technology.

According to the firm the investment would 'ensure that the market for AEA's skills in the medium term remains very active'.

'This new 'stimulus money' will take time to come through but it represents a very significant increase in the size of the accessible market available to the group,' it said.

The firm works with governments to define policy and helps businesses meet regulations.
However, the firm is not similarly upbeat for its UK operations.

It says the UK public and private sector market has been significantly impacted by the economic downturn and conditions are not expected to improve over the short term.

AEA said its underlying pre-tax profits surged 13 per cent to 10.6million in the year to March 31, and revenues increased 16 per cent higher to 93.7million.

However, the tough UK market conditions have not deterred the company from picking up contracts from government departments including the Environment Agency and the Department for Environment Food and Rural Affairs.

With the UK government having signed up to an 80 per cent cut in greenhouse gases by 2050, and a short-term target of 34 per cent by 2020 the firm expects to be in a growth market as departments compile data on policies and measures to determine which of these are working the best.                    
                                                                                         
The firm said that under the present difficult conditions both government and private sector need to make decisions that would help investment in energy efficiency.

It said the group is well placed to deliver the board's expectations for the current year and beyond.

The firm raised 58.3million in 2006, disposing its rail division, which made equipment to remove leaves from railway lines, a radioactive waste packaging division and a US engineering company to limit focus to its climate change work.

The company is headquartered in Didcot and also operates out of bases in Ayrshire, Warrington, Cardiff and London.


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Climate change firm AEA Technology bullish on US prospects