Turner & Townsend has reported an increased global turnover of £744m and increased UK and global profits for the year ending 30 April 2020, despite the impact of Covid-19 on the last quarter.
The company, which works on some of the world’s largest and most complex capital projects and programmes across real estate, infrastructure and natural resources, increased global net revenue by £101m, to £681m, a 17% increase on 2018-19. In the UK, net revenue rose by 9% in 2019-20, to £283m.
Global profits before amortisation were £88m on net revenue of £681m, a 29% rise on profits of £68m on revenue of £580m during 2018-19.
UK operating profit was £36m on revenue of £283m, a 24.6% rise in profit of £29m on revenue of £259m during 2018-19.
The business delivered strong growth in its real estate business, with net revenue climbing 19% to £404m, driven by demand from the high-tech and life sciences sectors. It acquired Taurus Project Controls Consulting in Boston and has also invested significantly in expanding its portfolio management capability across regional and global programmes, including the launch of new technology platform (PACE) to enable clients to monitor progress and data on their real estate portfolios in real time.
Infrastructure net revenue rose 15% to £206m, with robust growth in the UK, North America, the Middle East, Asia and Australia. Continuing its success in rail, Turner & Townsend has been appointed to the Sydney Inland Rail project and to New Zealand’s largest transport infrastructure project, City Rail Link.
Despite a turbulent natural resources market and collapsing global energy prices, revenue hit £71m, up 16% on 2018-19. With a focus on supporting the low carbon transition, the consultancy has successfully built market share in renewables and is working across a number of Liquefied Natural Gas (LNG) projects, including Freeport LNG in Canada – the second largest LNG facility in North America. Turner & Townsend has also invested in a programme management proposition for mine closure and rehabilitation, and is currently working for De Beers to rehabilitate former mining sites worldwide to support their future land use.
The company has committed to reducing its own environmental impact – setting and meeting internal targets for carbon reduction and ensuring that sustainability and social value principles are actively embedded in its working culture. Targets set in 2015 to cut carbon emissions per employee by 25% have already been met.
Vincent Clancy, chairman and CEO at Turner & Townsend said: “While we continue, like the rest of the industry, to feel the impact of Covid-19, our financial performance and business model stand us in good stead to withstand the economic aftershocks. Resilience has been the hallmark of our business over the last 74 years and this, combined with the solid platform we have created, makes me confident that we will emerge even stronger.
“As we transition from a health crisis to meet a growing economic challenge, the world needs to embrace a zero-carbon future, to transform cities and to create better living standards. Our industry is fundamental to solving the social and economic inequalities highlighted by the Covid-19 crisis, but in the past has too often been part of the problem. We now have an exciting opportunity to drive change and to build back better.”