David Barwell
Aecom’s UK and Ireland business has reported a 52% fall in pre-tax profit in 2017 despite taking revenue past the £400m mark, after problems on an "underperforming" project.
The company unveiled a pre-tax profit of £3.3m in the year to 29 September 2017, down more than half on the £6.9m it made the year before.
Meanwhile turnover rose to £403m, up 14% on 2016 thanks largely to Aecom’s growth in the UK and in particular in the water sector.
The UK accounted for the lion’s share of the group’s revenue growth, reaching £384.5m in 2017, up from £328.8m the year before. Revenue in Europe was flat at £9.4m, down slightly from £9.5m the year before.
In the Middle East, revenue fell to £5.5m, down from £13.3m the year before.
Aecom chief executive for the UK and Ireland David Barwell said: "Recently, there has been heightented political and economic uncertainty in the United Kingdom infrastructure market. Growth rates and market sentiment have been impacted by the ongoing Brexit neogotiations and the collapse of Carillion.
Aecom chief executive for the UK and Ireland David Barwell said: "Recently, there has been heightented political and economic uncertainty in the United Kingdom infrastructure market. Growth rates and market sentiment have been impacted by the ongoing Brexit neogotiations and the collapse of Carillion.
"The directors believe the Aecom business in the UK has a robust strategy in place to minimise downside risks and capitalise on growth opportunities as they arise."
The company, which launched a standalone UK contracting arm in 2015 and employs around 4,400 staff, including 3,800 engineering and technical staff, recently employed virtual reality to design the 2018 Serpentine Pavilion in London.
It is also working with the Silvertown Partnership (TSP), comprising Chelsfield Properties, First Base and Macquarie Capital to deliver 3000 homes at the 62-acre derelict site at the Royal Docks in east London.
TSP and Aecom are working on a modular factory at the site with the capability to deliver 500 homes a year.
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