Arcadis will assist the Environment Agency in the United Kingdom in preventing floods. The engineering and consultancy firm has therefore signed its fifth so-called framework agreement with the agency.
The new framework agreement that Arcadis has signed in the United Kingdom will not cause much concern among investors. It is mainly a continuation of an existing contract with the British Environment Agency, write analysts from KBC Securities. The new agreement does, however, increase Arcadis’ awareness of the growing flood protection market, the analysts say.
The engineering and consultancy firm announced that it had again signed a framework agreement with the Environment Agency. During the four-year cooperation, Arcadis helps the British, among other things, to modernize their planning and risk management in the fight against floods. KBC estimates that the contract involves several million euros per year.
KBC uses an accumulate advice and price target of 18 euros for Arcadis. Shortly after the opening of the stock markets, the share was 0.4 percent lower on Wednesday morning at 16.45 euros.
During the four-year cooperation, Arcadis helps the British, among other things, to modernize their planning and risk management. This should lead to the Environment Agency being able to protect around 300,000 homes against flooding by 2021.
The amount of money involved in the new contract will not be disclosed. Arcadis does, however, report that the agreement is part of the Client Support Framework worth £ 2.6 billion.