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Arup group profits rise after UK job cull

Arup saw a 6.5 per cent rise in group profit in 2010/11 despite a difficult year in the UK where 670 jobs were axed.

The design and engineering company reported an 8.7 per cent increase in annual group turnover for the year ended 31 March 2011, from £889.2m to £966.4m. Pre tax profit was £24.5m, up from £23m in 2010, with gains in Australasia and Asia.

The consolidation of Arup’s South African business into the group in April 2010, which had been operating as an independent company, also meant an increase in staff numbers, from 9,852 to 9,934.

This came despite the company announcing in January that it was making 15 per cent of its UK workforce redundant following a restructuring process, which equated to 670 roles of all types in the UK, with the loss of 280 permanent roles, 230 temporary and agency contracts and the relocation of 70 staff overseas.

Nine director roles were culled from the group in 2010/11.

The majority of 2011 turnover came from the UK - £337.8m, compared with £383.9m in 2010.

Chairman Philip Dilley said:  “These results reflect our strengths as a global player. They are also in line with our forecasts for what we knew would be a challenging year. We are particularly pleased to have maintained global income levels, which underlines the fact that our clients continue to see the value we bring.”

Group net cash flow was positive at £40.9m and net assets were at £65m.

Mr Dilley added: “Our resilience is founded on our established strategy of diversifying across businesses and economies.

“Looking ahead, economic volatility is set to persist in some markets, so the board will maintain our focus on core strategy and the bottom line so we can return value to our staff and maintain our financial strength.”

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