Chairman and Chief Executive Officer's statement

Gathering momentum

Vincent Clancy Chairman and Chief Executive Officer
“Core to building great capability are our 5,209 people around the globe who drive great results for our clients.”

Navigating change

Market volatility, rapid client change and increasing geopolitical tensions have all been characteristics of the last year.

The good news is that our business resilience and our ability to embrace change has allowed us to deliver our eighth year of consecutive growth. Excellent performance in 2017–2018 saw our turnover increase by 12 percent to £549m and operating profit by 18 percent to £55.5m. Pleasingly, all of our regions saw operating profit growth.

  • £549m Turnover
  • 12% Turnover growth

Business resilience

Our ongoing commitment to reinvest our profits and build capability allows us to adapt to our clients’ changing needs. The industry is ripe for rapid change. Our aim is to be at the forefront of our space by embracing new ways of collaborating, delivery methodologies and harnessing new technology.

This year, we embarked on a major digitisation programme to improve productivity and provide access to over a quarter of a century of programme performance data. We made further investment through our merger with Nairobibased Mentor Management Ltd (MML) and look forward to the many opportunities provided by global investment in Kenya. By taking a long-term view and investing for the future, we will build a professional services company that will lead change rather than respond to it.

Our people

Core to building great capability are our 5,209 people around the globe who drive great results for our clients. I remain inspired by their commitment to embrace change and to share experiences and knowledge for the benefit of all.

Our one business model, underpinned by our partnership provides us with a great platform. Our talent programmes continue to mature and our investment in our graduate and apprenticeship programmes creates a pipeline of outstanding future leaders. Our ability to both develop our own leaders and to attract the best talent in the wider marketplace has seen us strengthen our management teams around the world.

Growth specifics: sector focus

There were significant changes in the real estate sector. The biggest shift has been the increase in demand from high-tech clients as they become the largest consumers of office, research and development and data centre space. The renewal of cities as demand for accommodation and social infrastructure has also increased. Our capability in cities as well as on major programmes has enabled us to be beneficiaries of these trends.

Demand for aviation, rail and power continues to increase globally and capacity, carbon and affordability continue to be the key challenges. We have established a new business unit, Programme Advisory, which focuses on setting up major programmes for success. Armed with global best practice and data from the world’s largest programmes, it will provide real insights and I am confident that Programme Advisory will grow to be a significant part of our business over the coming years.

After a number of challenging years, activity in natural resources increased. The rise in oil price gave operators
confidence to invest and, in parallel, the mining sector strengthened as the price of several commodities rose
following stable demand. Looking forward, we expect this demand to continue as new projects come on stream and the outlook remains positive.

Our industry plays an important role in society. Being responsible is integral to the way Turner & Townsend operates and to the people who choose to build a career with us.

Positive impact 

I am proud to say our corporate responsibility programme has matured significantly in the last five years. We continue to be guided by the UN Sustainable Development Goals and this year are focusing on four, in recognition of the impact areas we are most involved in and can make a significant contribution to.

Sadly, during the year our former Senior Partner and Chairman, Tim Wray, passed away after a short illness. He will be greatly missed by everyone but his commitment to building a business with purpose and real integrity leaves a lasting legacy.

We will continue to build on this legacy by creating an even closer alignment between our service to clients, our corporate responsibility programme, and the big social issues the world faces.

Looking forward, we expect the headwinds in the markets we operate in to continue to grow. Despite this, I believe the investment in our capability, long-term thinking and commitment to doing business responsibly will provide a platform for even greater success.

 


This content is part of the Annual review 2017/2018

Go to the main Annual review 2017/2018 page