Slowdown in North America and emerging markets hits expected operating profit
Arcadis has issued a profit warning advising investors its operating profit for the 2015 calendar year will be lower than previously expected.
In a statement to the Dutch stock exchange this morning, Arcadis said operating profit increased by 10% last year, rather than 20% as it had previously advised.
It ascribed the hit to lower revenue and €5m (£3.8m) of additional restructuring costs in North America and emerging markets in the fourth quarter, as well as a delay in divesting Brazilian non-core energy assets, which it had expected to generate a gain of around €6m (£4.6m).
However, the firm said revenue increased 30%, while cash flow was “strong”. The firm did not mention UK or European trading.
In Arcadis’ 2014 results the firm posted operating profit of €123.6m (£91.4m) and revenue of €2.6bn (£1.9bn).
The firm celebrated a big win in the UK at the end of 2015, after picking up the sole managed service provider role on the £1bn revamp of Manchester Airport in December.
Arcadis, led by chief executive Neil McArthur (pictured), is one of the UK’s largest consultants having acquired major UK firms including EC Harris and Hyder.
Last year the EC Harris and Hyder brands were dropped as the two businesses were integrated under the Arcadis brand, with “one leadership team, with one integrated budget and one integrated team”.