Consultant assesses the market and posts profit and revenue growth in full-year results
Growth in global construction activity could “plateau” as early as the start of 2015, according to Gardiner & Theobald senior partner Simon Jones (pictured left).
Writing in the consultant’s 2013-14 annual report, published this week, Jones said the “tough years between 2008 and 2012 are finally behind us”, but warned: “As the outpouring of pent up demand begins to temper, we are beginning to see evidence that the resurgence of construction activity will plateau, perhaps as early as the start of 2015.”
Jones’ warning came as the firm posted a 26% jump in profit and solid growth in revenue in the year to 30 April 2014.
Gardiner & Theobald (G&T) posted distributable profit for equity partners of £23.1m for the period, up 26% on £18.3m the previous year, while revenue grew 4% to £110.7m, up from £106.7m.
Jones said profit growth was underpinned by “improved margins”, with profit being invested in better pay and more profit shared between the firm’s 143 equity partners.
Revenue was boosted by growth in the firm’s UK division, which grew 9% to £82m turnover, up from £75.1m.
This was underpinned by strong growth in its London business, which grew 22% to £54.3m, up from £44.5m.
However, turnover in the UK regions contracted 8% to £18.7m, down from £20.4m, while turnover in its UK dispute resolution business Fairway fell 12% to £9m, down from £10.2m.
Overseas, G&T’s turnover declined 9% to £28.7m, down from £31.6m, with its French and Asian businesses reporting declines in revenue, while turnover grew in the Nordics, the Middle East, Ireland and the Americas and the Caribbean.
Jones said G&T was on course to buck any dampening of construction activity: “Our positive financial performance has continued into the first few months of the 2014-15 financial year, which is very welcome and also a good indicator that we have increased our market share of fee earning opportunities.”
Projects highlighted in the report included Stirling Prize winning Liverpool theatre the Everyman (pictured below) – where G&T was cost manager – and the $2.2bn (£1.4bn) ongoing renovation of the United Nations campus in New York, where the firm is project and cost manager.