Profit at consultant Davis Langdon fell by half in the Europe and the Middle East region last year as the recession took hold, despite an increase in turnover
The firm’s profit in the region, which includes the UK, dropped 55% to £16.5m on an increase in revenue of 6% to £208.3m.
The rise in turnover includes the boost given by the acquisition of architect and commercial space planner DEGW last July.
Senior partner Rob Smith said the drop in profit was in part down to the collapse in the commercial and retail development industry in the UK, which previously together accounted for over a third of Davis Langdon’s UK fees.
Smith said winning work in Europe and the Middle East, would continue to be very difficult. He said: “Looking ahead it will be quite a tough year, and anyone that says not is ignoring reality. Our competitors are cutting fees markedly, but we’re not going to go down the route of buying work.”
Davis Langdon has not yet finalised its global results, but Smith said these would, in contrast, show a 20% growth in turnover to £326m.
He said he was looking to expand the consultant’s offering in programme management, working alongside engineers on projects in the rail sector.
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