HIGH-POINT RENDEL announced a 20% hike in pre-tax profits this week thanks to a move away from engineering consultancy and into higher margin management work.
Speaking at the publication of the group's interim results, chairman Tony Palmer said the proportion of operating profit generated by management services had risen from 60% last year to 72%. Margins for management work had increased from 12.3% to 13.5%.
High-Point's pre-tax profit of £912,000 was generated on a turnover of £12.4M. Operating profit from the group's Asia Pacific region was up a massive 82% despite the Asian currency crisis, due to demand for specialist claims negotiation and dispute resolution skills.
Palmer said margins in engineering consultancy 'continue to come under pressure'.