Turner & Townsend sees profits jump for seventh successive year

Turner & Townsend has announced its seventh year of successive growth, with turnover of £491m for the year ending 30th April 2017, an increase from £409m for the previous year.

The global professional services business, which employs nearly 4,700 people in 104 offices, has delivered profit after tax of £36.2m, a rise of 22 percent from £29.6m. 

The strong growth has been achieved against the backdrop of volatile global market conditions. Despite low commodity prices continuing to affect the Middle East, Turner & Townsend increased annual revenue in the region by 42% to £45.6m compared to £32.2m in 2015-2016.

Growth in its UK infrastructure and real estate business saw UK revenue climb by 18.3% to a record £212.5m. Revenue also increased in North America to £71.6m and £45.2m in Australia and New Zealand.  

Across its sectors, Turner & Townsend delivered strong growth in global real estate (revenue up 21% to £237m) and infrastructure (revenue up 26 percent to £155m), with natural resources revenue reaching £53m in a tough trading environment where investment in major projects remains low.

The past 12 months has seen Turner & Townsend appointed to a series of major new projects and programmes, including providing strategic support as one of four programme client partners for the expansion of London Heathrow Airport.  Across real estate, key work has included a pan-Americas roll-out programme for Uber and multiple roles on the Perth Children’s Hospital in Western Australia, including BIM and design management.  In natural resources the business is delivering a range of project management services for the expansion of one of the world’s largest copper and gold mines at Oyu Tolgoi in Mongolia.

During the year, Turner & Townsend has continued to invest in its capability by joining forces with leading asset management company AMCL to strengthen its lifecycle asset management offer, in addition to acquiring lean construction specialist Suiko and US West Coast firm Trestle.

Vincent Clancy, chairman and CEO, Turner & Townsend, said: “Against the backdrop of a continuing volatile global market, we have delivered another year of significant growth and exceptional financial results. Our diversified global business, investment in our long-term capability, and growing geographical reach are critical to our success, ensuring we are well placed to pursue our goal to be the world’s leading independent professional service provider within capital programmes by 2020.

Clancy said that the firm’s partnership model was key to their success. “It is a structure which ensures we have the flexibility to make independent decisions in our clients’ best interests and take a long-term view on investment, supporting both our sustainability as a business and enabling us to create a positive legacy,” he said.