Successful Turner & Townsend rises above challenging times

CONSTRUCTION consultant Turner & Townsend is bucking the economic downturn despite "very challenging" market conditions in its core UK and European markets.

The Leeds-based group said that it had maintained pre-tax profits at 10.2m in the six months to October 31 despite its revenues falling eight per cent to 96.9m.

Executive chairman Tim Wray described the results as "a great performance in this market".

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The company said conditions have been toughest in the UK, Europe and Middle East regions, where revenues have declined.

However the group's wide geographic mix means is has benefited from the upturn in its other regions – the Americas, Africa, Asia and Australia.

Mr Wray said that market conditions have stabilised in the UK and Europe, but it was too early to call an upturn.

"We'll see about the UK when we have a General Election," he said.

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"Things have stabilised and there is talk of things starting to move. In our other regions, they are all in different stages. Australia has not seen a recession and Africa is still doing well."

The group is still planning to float on the London Stock Exchange, but it is waiting for sentiment to improve.

"We're still looking to float, but we're in no rush," said Mr Wray. "We're cash generative and the only reason for the float is to continue with our expansion. When the door opens to IPOs we'll talk to our advisors."

He added that the float is unlikely to be before the last quarter of 2010, and is more likely to take place in 2011.

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The group said it is budgeting for an eight to 10 per cent decline in full year revenues while earnings before interest and taxation are forecast to come in at around 21m.

T&T said that while some reduction in staffing has been necessary, it has not been forced to make large scale redundancies and it has not had to introduce flexible working arrangements.

Job losses during the downturn have included less than 100 in the UK and under 40 in the Middle East. The group has around 2,500 staff.

Mr Wray said that no more job losses are planned.

The group's current projects include the King Shaka International Airport in Durban, South Africa, in preparation for this year's football World Cup.

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In Yorkshire T&T is working on The Wakefield Gallery (see sidepanel) and the University of York's new campus, which is one of the largest new campus developments in the UK.

Its involvement follows its work on other major arts projects in the region, such as Harrogate Royal Hall and Leeds City Museum.T

he group was project manager for the new Leeds City Museum and cost manager for the Rose Bowl building at Leeds Metropolitan University.

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 two years' time.

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The building is adjacent to London Bridge railway station and forms an integral part of the redevelopment of the area including the Thameslink cross London rail upgrades.

Other recent contracts include BP Pipelines in the United States, Crossrail in London and a reappointment on the Buying Solutions framework in the UK.

Despite the global downturn the group said it is seeing good opportunities in mining, infrastructure and major energy and oil projects.

Earlier this week T&T said it is relocating two of its directors to Canada and South Africa. This is ahead of the expected increase in the international infrastructure market over the next two years.

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Dominic Leadsom will move to Toronto, Canada. Mr Leadsom has worked in the UK Public Private Partnerships (PPI) environment advising lenders, bidders and Government institutions for the past 10 years. His role in Toronto will be to develop T&T's new PPP advisory business as the Canadian Government's Building Canada initiative commits to using PPP to meet future infrastructure demand.

Mark Walmsley, who will transfer to Johannesburg, South Africa, has been part of the UK team that has grown Turner & Townsend's PPP credentials since the early 1990s.

Mr Walmsley will help the company to increase its profile in the PPP market in South Africa and further develop its presence in the African market.

Region to get showpiece art gallery

Turner & Townsend is currently working on The Hepworth Wakefield, Yorkshire's major new art gallery which is due to open in spring 2011.

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Designed by award-winning British architect, Sir David Chipperfield, The Hepworth Wakefield will be the largest new art gallery outside London.

The gallery will be at the heart of Wakefield's regeneration and will celebrate the city's heritage as the birthplace of modern British sculpture.

Both Barbara Hepworth and Henry Moore, two of the most important artists of the 20th Century, were born and raised in the Wakefield district.

Councillor Peter Box, leader of the council said: "Wakefield Council is delighted to see this ambitious project near completion and take its place among some of the finest buildings around the world."

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