Consultant says bottom line hit by increase in operating expenses
The UK consulting arm of Arcadis saw profit slip last year with the firm blaming higher operating expenses for the fall.
According to accounts now filed at Companies House, pre-tax profit at Arcadis Consulting (UK) was down 16% to £46m on revenue up 3% to £493m.
In a note accompanying the accounts, the firm said: “The reduction was primarily driven by an increase in other operating expenses, partly offset by the higher revenue base.”
It said staff costs and other operating costs had increased during the year and added: “In response to market conditions and performance in certain areas of the business, the UK business continued to focus on cost efficiency, utilisation and appropriate resource alignment.”
The bulk of the firm’s turnover came from the UK with an income of £412m – down from £440m last time – although revenue from Europe was up nearly fourfold to £45m while work from rest of the world was up 50% to £36m.
Earlier this month, Arcadis Group said it was planning to sell most of its architecture business and cut 1,000 full-time staff from its wider business as part of a restructure following a failed takeover bid by WSP.
The consultant said it is “actively changing its portfolio” by concentrating investment in sectors and markets where “structural demand is strongest”.
Arcadis is currently ranked as the world’s third biggest employer of architects, with 1,781 architects on its payroll out of a total headcount of around 34,000.
Arcadis unveiled plans for the restructure shortly after WSP formally abandoned its intended takeover of the firm.
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