Halcrow’s decision to sell to CH2M Hill comes after a bad year for the UK consultant, annual results filed with Companies House reveal
Results for the year ending 31 December 2010 show Halcrow Group turned over £331M, a 13% drop on the £379M it made in 2009. Profit after tax was also down from £24.9M to £14.4M. The average number of staff employed during the year fell from 5,264 to 4,617. The firm’s net pension liability stood at £65M.
Halcrow Holdings, the ultimate parent company, has not yet filed results.
Current chief executive Peter Gammie told NCE the decision to sell was the culmination of a strategic thinking stretching back of a “number of years” and stressed it was not a response to the current state of the market.
But the firm has admitted in its annual results that 2010 proved to be a “testing one” for the company.
“In some respects the lingering impact of the abrupt economic contraction in late 2008 only became apparent in 2010, when a number of works in progress due to a cloe and were not replaced by an equivalent number of new concessions. This reflected in a drop in turnover,” it said, adding that it had had to make some “tough decisions” about the future shape of the company.
Turnover in the UK fell from £240M to £215M and in the Middle East from £113M to £79M. But in Europe it increased from £6M to £13M and in the Americas from £8M to £11M.
Halcrow's CH2M Hill takeover comes after bad 2010