Design and engineering giant WS Atkins was bullish over prospects for recovery today despite a 13% fall in first-half profits.

The firm’s performance was better than expected and it believes the global scale of the business will give it a “good level of resilience” if the UK’s economic slowdown lingers on.

The Epsom-based company has shed more than 2,000 staff in the past year as the downturn hammers demand, but underlined its hopes with a 6% dividend hike – sending shares almost 10% higher.

Atkins’ pre-tax profits of £43.5m came on first-half revenues 1% lower at £701.2m.

The company had 16,235 staff at the end of September, although this is likely to reduce further to around 16,000 by the year-end.

Atkins has already secured 90% of its projected revenues for the year despite uncertainty over the timing of when some contracts will begin.

The firm - which is working on the development of the London 2012 Olympic Park – landed new public sector deals during the first half including design work for the New Glasgow Campus education project and the NHS Tayside Murray Royal Hospital.

Atkins is also eyeing further opportunities in the nuclear new build sector and working with the Department for Energy and Climate Change on industry studies.

Overseas, the firm said confidence was returning to the Middle East region, where profits fell 25% in the first half.

Numis analyst Francesca Raleigh said the firm’s more upbeat tone was an “interesting change of message”.

“WS Atkins were the most bearish company on public sector (markets) and now that all the other Plcs have become cautious, Atkins are getting more bullish,” she said.