2009/10 Financial Statements show Arup Group Ltd has maintained a strong global position despite the difficult trading environment
The financial statements for Arup Group Ltd released today confirm turnover of £889 million for the year ending 31 March 2010 (2009: £889 million). Total profit before tax, dividends, exceptional items and staff profit share is £23 million (2009: £77 million). Profitability has been impacted by a range of factors, including market conditions and currency fluctuations. The firm has also sustained investment in new areas and in strategic staff mobility.
Highlights for the year ending 31 March 2010 include:
- £889 million turnover, £23 million profit.
- Growth in buoyant markets (notably Asia and Australasia) offset the slow-down in other areas.
- Changes to the pension scheme in the UK to reduce long term risks.
Read the Corporate Report 2010.
Turnover shows continued resilience against a background of challenging trading conditions in some of the major economies in which Arup operates. The Group has benefited from its ongoing commitment to the diversification of its businesses across geographies and markets. This, together with the ability to apply resources flexibly from locations around the world, and an increased focus on the mobility of our people, has helped to maintain global headcount, albeit at reduced profit levels. £19m of profit was paid through a global profit sharing scheme to the employees.
Philip Dilley, Chairman, said: “During the last year we have benefited from the Group’s multi-disciplinary capability that, combined with global reach, has enabled us to continue to win and deliver high quality projects around the world. Creative design solutions remain at the heart of Arup, and we are successfully applying this approach across an increasingly broad range of services.”
The balance sheet has remained strong, with cash reserves of over £100m. The Group’s independence and organic growth mean that it has no intangibles (goodwill, etc) inflating its asset base, and this provides a robust financial platform for the ongoing development of the business. During the year, the Group took advantage of favourable market conditions to acquire the freehold of its main office in London, reducing future rent commitments.
The closure of the UK defined benefit pension scheme and the change in statutory revaluation to a Consumer Price Inflation basis for deferred pensions have impacted on Group results. While changes to contain the risks of the scheme have now been made, the underlying volatility of asset and liability values will continue to impact on the balance sheet in the medium term. The replacement defined contribution scheme is flexible and more affordable to its members as well as more sustainable for the Group, and has attracted significantly more participants than the previous scheme.
David Whittleton, Group Chief Operating Officer, said: "Our business has remained resilient with real growth in many markets. However, we have also faced some hard but necessary decisions in a number of locations during the year, to keep our staff resources aligned with our current and expected workload, to manage our pensions risks, and to ensure that we are in the right shape going forward.”
Major ongoing projects of the Group include:
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Marina Bay Sands, Singapore
- Cornell University's ERL Upgrade (underground particle accelerator laboratory), USA
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Multi-products pipeline, South Africa
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Dubai airport, United Arab Emirates
- California high-speed rail, USA
- Crossrail, United Kingdom
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Hong Kong-Zhuhai-Macau bridge, China
- The Shard, London, United Kingdom
- Pembury Hospital, Maidstone, United Kingdom
- Study on carbon emissions for Beijing City Plan, China
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A30 Toronto, Canada
- Strategic Expert Adviser to the C40 cities group
Read the Corporate Report 2010.