US climate policy boost for AEA

Published on Thursday 11 June 2009 21:38

CLIMATE change consultancy AEA Technology claimed yesterday that US president Barack Obama's huge spending programme aimed at tackling the recession had boosted prospects for its US business.

The firm, which employs around 60 staff at an office in Ayrshire and is headed by Scots chief executive Andrew McCreer, said yesterday its US arm, PPC, had an order book of $2 billion (1.2bn) and was in a "strong position" to benefit.

The president's $787bn programme includes major funds for climate change and energy efficiency technology.

But AEA – which works with governments to define policy and helps businesses meet regulations – said prospects for its UK markets were gloomier.

"In the UK, the public and private sector market is significantly impacted by the economic downturn and the group expects that trend to continue," AEA added.

AEA disclosed that underlying pre-tax profits rose 13 per cent to 10.6 million in the year to 31 March, with revenues 16 per cent higher at 93.7m.

Despite the tough UK market, AEA picked up contracts from departments including the Environment Agency and the Department for Environment Food and Rural Affairs.

The UK government has also signed up to an 80 per cent cut in greenhouse gases by 2050, with a target of 34 per cent by 2020, which AEA says will create opportunities as departments gather data on which policies and measures are working best.