Corporate ‘vision’ is delivering results, says contractor

Lara Poloni Aecom

Aecom has announced a near-5% hike in annual turnover to a record $18.2bn (£13.8bn), and a pre-tax profit of £429m (£325m) - nearly two and a half times 2016’s figure, which had been dented by acquisition charges and losses incurred on sold businesses.

Annual revenue for the year ended 30 September 2017 in the consulting behemoth’s design and consulting services operation was $7.8bn (£5.9bn), down 1% on 2016, while its construction arm posted a 15% increase in turnover to $7.3bn (£5.5bn). Gross profit margins improved slightly in both businesses to 5.2% and 1.3% respectively.

Management services recorded revenue of $3.3bn (£2.5bn), essentially flat on the previous year, while the division’s gross profit margin fell one percentage point to 5.9%.

The firm said it was anticipating earnings before interest, depreciation and amortisation next year of $910m (£690m), up 10%.

Aecom’s chairman and chief executive Michael Burke said 2017 had seen “strong cash flow, record backlog, and accelerating revenue growth, which serve as clear evidence that our diverse business and design, build, finance and operate vision are delivering results”.

The firm recently confirmed it wanted to extend an initiative under which it has acted as investor and developer on a number of schemes in the US over the past four years to the UK and Europe.

Aecom Capital, as the venture is known, has already invested in 17 schemes in the US, with a development value of close to $5bn (£3.8bn).

Lara Poloni (pictured), Aecom’s new boss for Europe, the Middle East, India and Africa, told Building last month there was a deficit in terms of the funding available, particularly for infrastructure projects, “so we have a unique ability to create some of the projects and bring to the table schemes that can make a difference”.