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UK downturn to hit Grontmij’s 2011 profits

Consultant Grontmij last week warned that profits from its UK and central Europe operations will be significantly down this year, as tough trading conditions take hold.

Slim margins

The firm’s operating profit in the UK and central Europe region fell to just €600,000 (£515,000) in the nine months to 30 September 2011. Revenue was £92M, and its operating margin was just 0.6%.

In the same period in 2010 the firm made an operating profit £2.7M on revenue of £95M, an operating margin of 2.8%.

Overall, the company’s nine month global profit before tax and exceptional items for 2011 stood at £24.1M, slightly up on £23.8M in the same period last year.

But it said it expected the full year figure to be down on last year at £34.3M.

Town planning market “completely devastated”

In 2010 profit before tax and exceptional items was £39.9M.

The firm said profits were hit by difficult trading conditions in the UK caused by government cuts in transport spending and a slow start to spending in AMP5 water work.

It added that its UK planning and design business was losing money because the market for town planning had been “completely devastated”.

It said extra restructuring measures had been taken to stabilise the situation in the final quarter.

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