Turner & Townsend overcomes challenging market conditions
YORKSHIRE construction consultants Turner & Townsend has overcome challenging market conditions to grow its UK profits by more than a quarter.
The Leeds-based groups said UK profits jumped to £3m to nearly £15m in the year ended April 30 2013.
Profits increased in all of its seven regions and the business’s global turnover exceeded £300m for the first time. Its operating profit margin rose from 9.7% to 10.5%.
While much of the British construction sector struggled in the face of weak demand, Turner & Townsend’s UK operation recorded strong growth. Revenue rose by 14% to £133m and profits increased to £14.8m.
A series of high-profile project wins, including the redevelopment of London’s iconic Battersea Power Station and the refurbishment of the world’s biggest greenhouse at the Royal Botanic Gardens, was accompanied by strong investment in staff. The company completed its largest ever graduate intake and increased UK staff numbers to 1,587.
Turner & Townsend grew its global workforce by 16% and now employs 3,239 staff across a network of 80 offices in 33 countries.
UK managing director, Steve McGuckin, said: “The UK market is still far from rude health, but even in this challenging environment our reputation for consistently delivering both excellence and value to our clients has ensured we stay ahead of the competition.
“Our diversified business helped us compete – and win – across a range of sectors this year, and our work on a series of major infrastructure programmes like London’s Crossrail continues to strengthen our pedigree and provide long-term revenue.
“To have increased both profits and revenue in these tough conditions is a real achievement, and a just reward for the UK team’s dedication to their clients and sheer hard work.”
Turner & Townsend also increased its international footprint and grew global profits by 29%.
Overseas markets now account for 54% of total revenue, and in the past year the company opened eight new offices, entering Norway for the first time and extending further into the US, the Netherlands, Germany, Russia and China.
Turner & Townsend’s overseas expansion has been accompanied by a string of strategic acquisitions in key markets – including Hong Kong, the US and Norway.
Turner & Townsend’s CEO, Vincent Clancy, said: “This past year has been both challenging and intensely rewarding for us. Amid some volatile market conditions, Turner & Townsend has once again exceeded its growth expectations.
“We have grown further and faster than in the previous year as our expansion strategy pays off. By putting the right people, with the right skills, into the right places, we have consistently been where our global clients need us to be.
“Our sustained growth owes much to the quality of our people, but also to the company’s agility and its willingness to confront challenging conditions at home and pursue exciting opportunities abroad.
“We will continue to innovate and outperform, and I am confident that we are entering our new financial year in good shape.”
