Strength in partnership
Vincent Clancy Chairman and Chief Executive Officer
With revenue growth across all our global regions, we have continued to see the benefits of investing in our people and building partnerships that have powered us to success over the past year. Our diverse business model and distinctive global capability continue to set us apart and I am proud of how our talented teams around the world have positioned us well to help solve our clients’ and society’s challenges while navigating evolving market conditions.
2022–2023 was an exceptional year for our business, reflecting increasing demand for our services across the world, despite continuing global economic uncertainty. Our strong performance demonstrates the diversity of our business model, the strength of our client relationships and partnerships, and above all, the excellence of our people. It has also been a year in which we have seen the power of our partnership with CBRE. As a result, we finished the financial year to April 2023 with net revenue increasing by 37 percent to reach a record £1.1bn. As a purposeful and responsible business, we want to transform performance for a green, inclusive and productive world. The challenges our industry faces – whether economic, climate–related or social require fresh thinking and new solutions. Programmes and projects are becoming larger and more complex and require a new approach to programme management.
Through our investment in our talent, in our proposition and in technology, we have continued to build our reputation – as a programme partner who takes on the most complex challenges and overcomes them. Setting up and delivering complex capital programmes, embedding digital solutions, making the transition to net zero and driving business change, we are bringing solutions to our clients’ and society’s biggest challenges.
Our investment in our capability has meant that many of the world’s largest projects and programmes are now partnering with us to set up for success.
This year's results
Turnover
38.6% increase on 2022↑
Net revenue
37.0% increase on 2022↑
People
26.5% increase on 2022↑
This year's highlights
Strengthening our global footprint
To transform the performance of construction projects and programmes and have real impact, I remain convinced of the benefits of strengthening our global footprint and capability. Our ability to pivot and mobilise our talented teams to where they are required remains a priority as we align to the needs of our clients around the world.
This year, our global workforce reached over 10,700 people and we saw double-digit revenue growth across all our regions, with particularly strong performance in North America, Europe and Asia. In the UK we continued to grow our leading market position.
Growth across key sectors
In real estate, our revenue increased by 37 percent as clients repositioned their global portfolios to reflect new ways of working and reduce carbon emissions. Elsewhere, the life sciences, data centre and advanced manufacturing markets all saw strong activity, and we saw an increase in vast new mixed-use projects.
Our infrastructure business continued to see strong demand across all our regions, driving revenue growth of 34 percent. There was a significant increase in investment in aviation, defence and environmental resilience projects.
Challenges to global energy security, combined with the need to meet net-zero targets, have propelled investment in renewable energy. As a result, our natural resources business grew by 53 percent, and we are well-positioned to benefit from this trend in the coming year. We also saw continued expansion by mining companies into projects allied to the clean energy transition and this is another trend that we expect to remain.
Recognising the value of partnership
As well as experiencing a strong year of organic growth, we have been active in the mergers and acquisitions space. In the UK we joined forces with alinea, a leading London-based cost management business, reinforcing our dominance in the market; in Europe we acquired IES, an asset management consultancy based in the Netherlands; and in Australia we acquired JukesTodd, a leading mining advisory business.
We also transferred several businesses from CBRE, including Heery in the US, which provides us with significant capability and scale in the public sector.
This was the first full year of our partnership with CBRE since their investment. As well as benefitting from the business transfers, opportunities from their wider client base came into focus. A deep understanding is growing of how we will maximise our respective capabilities to build unique offerings to our customers.
More than ever, I am convinced of the benefits that the CBRE partnership will bring and the opportunities through collaboration we will create for our people.
Driving inclusion in our workforce
We want to build a business where our people can thrive – where they feel valued, heard and have a sense of belonging – for us to live our purpose and our values. Over the past year we launched our Commitment to Inclusion programme, where every leader across the business made a personal pledge about how they would strive to build a fair and inclusive environment. We support this with our Licence to Lead programme, which helps managers explore how they can lead and manage teams more inclusively.
We still have much to do, but I’m pleased with the progress we are making in setting bold targets – and ways to achieve them.
Investing in our people and new talent is critical to meeting the needs of our clients. Over the year, more people have been benefitting from our career initiatives and programmes in our regions.
Underpinning our corporate responsibility programmes worldwide is our commitment to deliver better outcomes – in our projects, in our recruitment, and in the way we work for everyone.
Supporting societies and communities
Contributing to the societies and communities where we work is central to our purpose. In 2022–2023, we launched our global Making the Difference Fund to support causes that cross geographic boundaries to deliver transformation at a scale, such as the Disasters Emergency Committee’s (DEC) Turkey–Syria earthquake appeal.
The Fund will enable long-term partnerships, which draw on our expertise and scale to deliver much-needed change in our industry, society and environment. I’m grateful for the generosity of our global partners, who donated over £1m to start the Fund.
In the past year alone, we have helped nearly 4,000 children through our education charity partnerships and projects and raised more than £640,000 to support our communities through corporate donations.
Well-placed for the future
Looking ahead there is no doubt that, from a global economic perspective, it will be another tough year. But the strength of our position, combined with our distinctive global capability and talented team, ensure we are ideally placed to accelerate and continue progressing our plans.
We will continue to invest in building our capability for the long-term, underpinned by the belief that major programme investment to solve our clients’ and society’s biggest challenges is needed more than ever.
© 2023 Turner & Townsend