Overseas work bolsters Turner & Townsend

CONSULTANT Turner & Townsend said its strong international expansion continued to buffer it against tough conditions in the UK.

The Leeds-based group, which works on projects ranging from skyscrapers to new schools, said its international business grew to 42 per cent of revenue in the year to the end of April, from 40 per cent a year earlier.

The group's pre-tax profits rose 16 per cent to 18m, but revenues dipped about nine per cent to 192m.

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That was T&T's first fall in revenues in 10 years as project delays and cancellations in the UK, Europe and the Middle East took their toll. However, Australia, the Americas, Africa and Asia all saw sales growth, and T&T plans to accelerate its growth globally over the next year. It now has 63 offices after opening sites in Vietnam, Canada, Kazakhstan, Chile, South Korea and New York.

"We have set out our global footprint out over several years in the form of investments in new regions," said executive chairman Tim Wray, who is moving to the role of non-executive chairman next year after spending 40 years with the business.

"The international part of our business is growing at a faster rate than the UK.

"It (international) is going to be something towards 60 per cent of our total revenues within the next five years."

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T&T has suffered from the impact of project cancellations such as the 464m North Tees hospital, which was axed by the coalition Government, as well as new schools projects.

"It's not all negativity," said Mr Wray. "(With North Tees) the trusts are looking for alternate solutions. It's not as black and white.

"Public sector spending is going to have an impact across the board but we're not looking at it and seeing that this next year will be a serious cutback from our view in the UK at all.

"We're still looking for growth in this financial year and we've started off pretty well.

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"We've had 10 years of huge growth. It was the first year that we've gone backwards."

The group employs 209 staff in Yorkshire, with the bulk of these at its Leeds head office.

Its global workforce is about 2,200.

T&T said its order book stands at 320m, and margins improved to 10.5 per cent.

The privately-owned group has once again deferred a long-expected move to the stock market, as tough conditions hamper initial public offerings.

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"Our intent remains the same," said Mr Wray. "When the markets are less volatile we will consider our position."

In London T&T is project manager for The Shard in London Bridge – which will become the tallest building in Western Europe standing at 1,016ft (310m) when it opens in 2012.

It also recently completed cost management work on the Museum of London's new 20.5m modern London galleries.

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