“Intensely rewarding” year sees turnover up 18%, biggest gains overseas

6 August 2013 0 Comments

6 August 2013

Eight new offices and an increase in turnover of 18% signal Turner & Townsend’s most successful year to date.

Revealed in the 2012-2013 annual review the UK-based global programme management and construction consultancy boasts that:

  • gross revenue was $421m, up 18% from the previous year;

  • profit before tax was $29.7m, up 29% from the previous year;

  • sector revenue growth continued across property (13%), infrastructure (24%) and natural resources sectors (19%);

  • all seven regions achieved revenue, profit and margin growth over the prior year;

  • 54% of revenue was generated outside the UK; and

  • the workforce increased by 16%.

The Middle East had the highest revenue growth – 53% (Виктор В/Wikimedia)

Major wins for the firm include commissions with Anglo American, Abu Dhabi Airports Company, Battersea Power Station Development Company, Chevron, ExxonMobil, Dubai International Airport, McDonald’s, Maserati, National Australia Bank, Rolls-Royce, Siemens, Southern Water and Time Warner Inc.

Turner & Townsend says much of the growth is organic. Eight new offices opened in Denver, The Hague, Stavanger, Berlin, St Petersburg, Macau, Shenzhen and Hong Kong – although some came about through acquisitions.

A total of 3,239 staff members were employed at the end of 2013, compared to 2,781 in 2012, with over 60% of the technical staff based outside of the UK.

The most revenue growth (53%) was seen in the Middle East, where the company was awarded a number of airport and rail projects, including in Oman, Qatar and the United Arab Emirates.

Air and rail projects alone accounted for $73m or 15% of total group turnover, with power and utilities delivering a further $23m.

In addition to a new office in The Hague, the acquisition of Pearson Lugard in Norway added to Turner & Townsend’s global capability in the oil and gas sector and is the company’s first Scandinavian office

Turner & Townsend CEO Vincent Clancey

The acquisition of H A Brechin in Hong Kong continued Turner & Townsend’s expansion into Asia, particularly in the infrastructure sector.

The company opened an office in St Petersburg after winning a place on the $15.3bn Gutenborg residential project there.

UK revenue increased by 24% over the past two years, despite a shrinking construction market. Turner & Townsend put this down to sector diversification, service development and excellence in delivery.

CEO Vincent Clancy called it an “intensely rewarding” year.

Amid some volatile market conditions, Turner & Townsend has once again exceeded its growth expectations,” he said.

We have grown further and faster than in the previous year as our expansion strategy pays off.”

Little wonder, then, that its strategy for next year is more of the same, with a continuing focus on emerging economies.

“The mature Western economies will continue to oscillate around modest rises and falls,” Mr Clancy said, “whilst the emerging economies will continue to achieve growth, albeit with increasing volatility.”

See: Turner & Townsend’s annual review