Annual review 2010-2011 Back to home page Back to home page

Building on our diversity

I am pleased to say that against a continued tough economic background we have demonstrated the resilience of both our business model and our strategy, to produce strong results for 2010 - 2011 in line with expectations. We have continued to shape the business to align with geographies and sectors in which we have invested over recent years.

Resilience in our results

For the first time revenue from the other six operating regions matched that in the UK and I have no doubt that this movement will continue apace during the coming years. It is due solely to the diversity that has been developed regionally and in the number of sectors across which we operate that we are well positioned for when the global economy improves and real growth returns.

Turnover during the period was £236m (2010: £217m), an increase of nine percent, while profit before interest, exceptional items and tax fell marginally to £18.7m (2010: £20.1m), a decrease of seven percent. The adjusted EBITA profit margin was 9.2 percent (2010: 10.5 percent).

The decline in margin reflects the ongoing difficult trading conditions, particularly in the UK, which slowed down in the second half of the year with revenue reducing to £108m and profit to £11.2m. This was compounded by the Government confirming its planned cuts in the Comprehensive Spending Review and little movement in the private sector. All other regions produced revenue growth with exceptional increases in the Americas (up 44 percent), Africa (up 15 percent) and Asia (up 52 percent), positive movement in Australia and Europe and a resurgence in the Middle East. The oil and gas sector increased revenue by 21 percent on the year before; mining and metals saw impressive growth in revenue of 95 percent and infrastructure of eight percent. Our new venture in South America performed well in its first year of trading as did the merger in Canada and the new businesses in Eastern Europe, the Middle East and Asia. All will make increased contributions in the coming years.

The balance sheet remains strong as does the group's liquidity and we ended the year with nil gearing and net assets of £24.1m (2010: £19.6m). Our order book is stronger than a year ago in all regions other than the UK and there have been several substantial commission wins since the year end.


Next May 2010   ...we launched our global service model - bringing a one business approach to clients...