On Wednesday, Jacobs Engineering Group Inc. (JEC) received a 2-year extension of its term on the National Engineering and Environmental Consultancy (NEEC) Agreement framework with the Environment Agency of England and Wales.
Jacobs will provide project management and full-design services in support of the Environment Agency’s national flood and coastal risk management and water resources capital works programs. However, the financial terms were not disclosed.
The consultancy framework, one of the largest in the public sector in U.K. with an investment of approximately US$89 million in 2008-2009, includes project identification, option appraisal through detailed design and contract documentation, contract supervision, and post-project appraisals. The agreement emphasizes value for money, program management, health and safety and sustainable design within a competitive environment. The framework agreement has been extended to October 2011.
The Environment Agency, a government body in the U.K., aims to protect and improve the environment, promote sustainable development, and deliver environmental, social and economic benefits to people as well as their property.
With annual revenue exceeding $12 billion, Jacobs’ is one of the world’s largest and most diverse providers of technical, professional and construction services. The company’s diversification in terms of markets, geography and services will continue to facilitate future growth. Moreover, Jacobs’ cost focus puts it in a dominant position to expand margins under difficult economic circumstances.
At the end of the third quarter, the company’s net cash position grew to $1 billion, up $254 million from the previous quarter and over $450 million from the beginning of 2009. Thus, this is a great story from an investment perspective. Jacobs has a strong balance sheet, which is expected to grow at compound rate of 15% over the long-term.
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