Turner and Townsend turnover up 8%

Turner and Townsend turnover up 8%

The global consultant posted turnover of £409m for the year to 30 April 2016, compared with £379.9m in its previous year, while pre-tax profit increased to £38.8m from £36.7m.

Turnover for the UK business totalled £179.6m compared with £157.6m the year before, while operating profit increased to £20m from £16.8m.

The company said it saw global growth in its real estate and infrastructure businesses, but added that this was offset by revenue “falling significantly” in its natural resources division.

Natural Resource

“Oil and gas organisations have drastically reduced investment in upstream projects, especially in deep water,” it said.

“Lower feedstock prices, resulting from the lower oil price, have created higher margins than average for our downstream refining and chemicals clients in other locations and they have been investing in facility efficiency and upgrades.”

The firm added that it was “optimistic” some commodities in mining and metals would improve within 18 months and expected oil and gas prices to show “some signs of recovery” over the same timeframe, leading to an increase in investment.

Real estate

Turner and Townsend said it was able to offset the challenges in the natural resource sector following “particularly strong growth” in its real estate business in the UK and the Middle East.

Residential was one of the fastest-growing sectors for the company, which worked on major residential schemes including the first phase of Qatari Diar’s Chelsea Barracks, the contract for which has been extended to further phases.

It has also been consulting on the first two phases of the multi-billion-pound Battersea Power Station project (pictured).

Infrastructure

The group said “economic growth plans, increasing urbanisation and a growing recognition of the role infrastructure plays in global competitiveness” continued to drive investment.

T&T added that it secured significant wins in Asia, Europe and North America as well as the UK, where it bagged a role on Heathrow’s expansion programme.

“Governments developed and implemented long-term national infrastructure plans to drive better economic outcomes, while asset owners and operators looked to improve the set-up and delivery of major programmes,” it said.

 

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Turner and Townsend turnover up 8%
BDC July 2022 issue - 294

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