High Point Rendel suffers £4m post-buyout loss

Multi-disciplinary consultancy High Point Rendel suffered a £4.3m loss after it completed a management buyout two years ago, it emerged this week.

Accounts released to Companies House revealed the loss at the operating arm of the firm, which specialises in project management, dispute resolution and engineering services, for the year to 31 July 2004. It followed a £3.8m pre-tax loss posted for the previous year – turnover at the firm remained stable at £14.1m.

The company would not comment on the results as QS News went to press. However sources close to the firm said the losses had drawn a line under historical problems at the firm, which included outstanding payments due from work carried out in the Middle and Far East.

QS News understands this included unpaid fees for design work carried out by the firm for a new bridge in Abu Dhabi, which was initially called the Third Crossing but has now been named the Shaikh Zayed Bridge. The crossing will serve as a link between Abu Dhabi and Dubai. High Point Rendel was first selected as main designer on the scheme in the mid-1990s but the client, the Abu Dhabi Works Department, decided to change the design and bring in big name architect Zaha Hadid in 1998. She drew up a so-called “Dune” concept for the project. Work is due to finish on the scheme in 2007.

A source close to the company said the firm had accounted for such issues. He added that High Point Rendel had been trading in line with expectations this year and that future prospects were good. He pointed to recent appointments such as former Crossrail and Terminal 5 boss Norman Haste as operations director as positive signs for the company. It is understood that renowned project manager Howard Shipley, who worked on Chek Lap Kok airport in Hong Kong, has also joined the firm. He is currently working on the redevelopment of the Ascot racecourse.

It should be a powerful company from now on, especially in
the area of troubleshooting

Source close to High Point

The source said: “They are getting a super group of individuals together. It should be a powerful company from now on, especially in the area of troubleshooting projects.”

High Point Rendel, which was previously listed on the Stock Exchange, completed a management buyout in September 2003. The deal was led by chief executive Kelvin Hingley and chairman Sir Alan Cockshaw, who said the MBO created financial stability for the firm.

The majority shareholder at the firm is now Saudi Arabia-based Al Rushaid Investment Group, which also owns a stake in UK steel contractor Cleveland Bridge.