Half Year Performance In Line With Expectations
Date: 20 January 2010
Turner & Townsend, the global provider of programme and project management, cost management and management consultancy services, provides an update on trading since the end of April 2009.
Turner & Townsend is performing in line with the Board’s expectations. For the 6 month period ended 31 October 2009, net revenue was £96.9m (2008: £105.6m) and profit before tax was maintained at £10.2m (2008: £10.2m). EBITA margin improved to 10.6% (2008: 9.9%), and operating cashflow was £15.3m (2008: £5.3m). At 31 October net funds were £10.7m (2008: net debt £16.1m).
The business continues to perform well in market conditions that remain very challenging. Markets have been toughest in UK, Europe and Middle East regions, and these have shown revenue decline over the prior year. Revenue in each of Turner & Townsend's other regions – Americas, Africa, Asia and Australia – has grown over the prior year.
Despite the reduction in revenue, by building critical mass in newer businesses, management focus on quality of earnings, and by taking prompt action on cost base, margins improved by 60bps in the period over the margin of 10.0% achieved in the year ended 30 April 2009. Whilst some reduction in staffing has been necessary, Turner & Townsend has not been forced to make large scale redundancies, and has not needed to implement the flexible working arrangements that its staff signed up to earlier in 2009.
Turner & Townsend's single global business structure has also supported its margin growth, with it being very effective in allowing management and resources to be directed to the best project opportunities across the world, thereby taking advantage of its diversified business model.
Market conditions in UK and Europe in the period have stabilised, and encouraging signs are being seen in the other global markets in which the company operates. Infrastructure investment presents significant project prospects across all regions, and the company is continuing to see good opportunities in its energy and mining businesses, where markets are still strong.
Tim Wray, Executive Chairman, commented: “The Board remains committed to its strategy of growth through global and sector diversification. A joint venture was recently established with HamniParsons in South Korea, and new business openings in the period include offices in Chile and Vietnam. To support our growth plans the business has continued to recruit senior management, and we look to make further acquisitions in selected markets.
“We continue to be confident that our strategy best positions Turner & Townsend to take advantage of market opportunities and for delivering further growth.”
ENDS
For further information contact:
Ali El Moghraby, Senior Manager - Communications
t:+44 207 544 3992
e: ali.elmoghraby@turntown.com
Editors Notes:
Turner & Townsend is a quality-driven international construction and management consultancy recognised for the value and innovation it brings to every commission we undertake.
Employing over 2,400 staff from a global network of 59 strategically located offices, it provides a full range of consultancy services designed to deliver effective solutions for clients anywhere in the world. This is achieved through specialist operating divisions which include programme management, project management, cost management and cost engineering, project controls, PPP consultancy, procurement and contract services, business performance improvement, change management, health safety quality and environmental consultancy, as well as facilities management.