Aecom UK’s profit has fallen by a third, partly due to restructuring costs. Pre-tax profit for the UK arm of the US engineering firm fell to £12.4m
Aecom UK’s profit has fallen by a third, partly due to restructuring costs.
Pre-tax profit for the UK arm of the US engineering firm fell to £12.4m for the year ending 29 September 2019, down from £19.2m the previous year. The decline was partly due to restructuring in the business, including exiting some non-core operations. A spokesman said this included pulling out of markets where “growth opportunities are less robust”. Despite the restructuring, Aecom UK’s headcount increased slightly from 4,094 in 2018 to 4,116 last year.
Revenue was broadly flat at £436m compared to £431.1m in 2018, with uncertainty around the Brexit negotiations blamed for dampening growth. An Aecom spokesman said: “Our 2019 results in the UK create a solid foundation for the future, marking strong progress on our strategic priorities, including ongoing efforts to hone our focus on our core markets.” He added that the company had secured positions on more than 250 frameworks across the country and was continuing to search for opportunities on substantial infrastructure projects.
Aecom has been undertaking a worldwide restructuring. In its last financial year, the total cost of this was $95.4m (£73.2m) and it expects to incur a further $130m-160m (£100m-123m) in costs in the current year. Among its biggest moves are exiting some oil and gas markets and its self-delivered, fixed-price construction work. The company claims that it will reduce its annual running costs by around $255m (£196m) per year once its restructuring programme is completed.
Fonte:https://www.constructionnews.co.uk/financial/aecom-uk-profit-slips-after-restructure-18-02-2020/
