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Turner & Townsend to become partnership as it targets five years of double digit growth

Turner & Townsend is targeting a further five years of double-digit revenue growth as it converts to a partnership after posting strong financial results for 2014/15.

The construction consultancy grew turnover by 6.3 per cent to £380m, while operating profit was 11 per cent up to £37m. Since 2010, turnover has increased by 75 per cent.

In the UK alone, turnover was up by 9 per cent to stand at £158m, although the consultancy’s domestic business is now smaller than its overseas business.

“We expect the global business to grow at a stronger pace than the UK business,” chief executive Vincent Clancy told Construction News.

Mr Clancy said the group intended to grow the global proportion to 60 per cent and “expects to reach that target in the next two or three years”, while he expected overall growth “to remain in double digits over the next five years”.

Revenue growth was most pronounced in Latin America, where it leapt by 66 per cent.

Non-UK business makes up around 55 per cent of Turner & Townsend’s revenue. The Middle East business grew by 45 per cent, Asia was 22 per cent up and the North American arm posted an 11 per cent rise.

The group’s infrastructure division posted a 20 per cent rise to £106m, boosted by appointments to the Medupi Power Station in South Africa and airport expansions in Dubai and Hong Kong.

In the UK, Mr Clancy said he was encouraged “to see infrastructure spend increase” but urged the government to create more certainty around major projects, such as the decision on the third runway at Heathrow.

Mr Clancy was one of 270 business leaders last week to sign a letter calling on the government to back the Sir Howard Davies-led Airports Commission’s recommendation to build a third runway at Heathrow.

“We see lots of opportunity in infrastructure all round, but obviously the third runway would be a big project for London and the South-east, which would have a big impact on the construction industry there,” Mr Clancy said.

“One of the big factors for the market is how quickly that decision becomes a reality or not.”

Turner & Townsend has worked with Heathrow before. Mr Clancy said: “We’d like to think we’d play a role in the third runway if it goes ahead.”

The business will now convert to a partnership.

Mr Clancy said: “With our operating profit rising by 11 per cent to an all-time high of £37m, we have decided the time is right to convert to a partnership.”

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