Chief executive Vincent Clancy spells out priorities as pre-tax profit drops 12%
Consultant Turner and Townsend’s international revenue will exceed its domestic turnover for the first time next year, according to chief executive Vincent Clancy.
Clancy said the firm – which reported a 12% drop in pre-tax profits for the year to 30 April 2011 in its annual results this week – is targeting 55-60% of revenue to come from overseas by the end of this coming financial year. In 2010-11 47% of its turnover came from international markets.
Pre-tax profit at the global firm fell from £17.8m in 2009-10 to £15.7m in the financial year to April, but revenue grew slightly from £191.6m to £204.3m.
Clancy said the drop in pre-tax profits reflected squeezed margins in the UK and “heavy” investment in international markets over the year.
A 15% drop in UK turnover was counterbalanced by 22% growth internationally, with particularly strong growth in the Americas and Asian markets, which were up 44% and 52% respectively.
The firm also enjoyed success in the resource sectors, with revenue in the mining and metals sector almost doubling, up 95%, and oil and gas sector up 21%.
He added the firm was looking at acquisitions in the Americas, Africa and Europe and more contracts with global blue chip clients to further drive international growth.
Revenue from global key accounts grew by 20% during the financial year.