{"id":471414,"date":"2023-01-05T13:17:02","date_gmt":"2023-01-05T13:17:02","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=471414"},"modified":"2023-01-05T14:34:06","modified_gmt":"2023-01-05T14:34:06","slug":"arup-profits-nearly-halve-as-staff-costs-jump","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/consultants\/arup-profits-nearly-halve-as-staff-costs-jump-05-01-2023\/","title":{"rendered":"Arup profits drop by third as staff costs jump"},"content":{"rendered":"

Arup has seen its annual profits drop by a third despite reporting a return to revenue growth.\u00a0<\/span><\/p>\n

The consultant reported pre-tax profit of \u00a336.7m in the year to the end of March 2022, compared to \u00a354m the previous year.\u00a0<\/span><\/p>\n

It came as \u201ccharges from sub-consultants\u201d and other project expenses rose a quarter to \u00a3425.5m, accounts filed at Companies House revealed.\u00a0These costs relate to the firm’s subsidiary\u00a0Ove Arup & Partners, whose staff are not\u00a0directly employed by\u00a0Arup.\u00a0<\/span><\/p>\n

In addition, the amount Arup paid out on its profit-share scheme to its workforce jumped 46 per cent to \u00a3143.1m. Since 1979, the firm has been employee-owned with all of its 16,000-strong global workforce having a stake.\u00a0<\/span><\/p>\n

Costs from redundancies fell sharply in the latest year, the accounts showed. In its 2021 financial year Arup recorded \u00a327.9m of \u201cheadcount reduction costs\u201d, but this dropped to \u00a31m in the latest year.\u00a0<\/span><\/p>\n

Turnover rose 10 per cent to \u00a31.9bn. In its previous year Arup\u2019s revenue had dropped 5 per cent to \u00a31.7bn as it felt the impact of the pandemic.\u00a0<\/span><\/p>\n

The UK is Arup\u2019s largest market, where in its latest year it recorded a 17 per cent rise in turnover to \u00a3710.4m. The next highest was the Americas where its revenue increased to \u00a3363.3m.\u00a0<\/span><\/p>\n

Arup chair Alan Belfield branded the results a \u201cstrong financial performance\u201d despite \u201clengthy\u201d lockdowns in some of the regions where it operates.\u00a0<\/span><\/p>\n

On the war in Ukraine, Belfield said the financial implications for Arup had been \u201cmodest\u201d. In Russia, the group withdrew from a \u201csmall number of projects\u201d but did not have any offices there, he added.\u00a0<\/span><\/p>\n

However looking ahead, the company warned about the current conditions. \u201cThe escalation of geopolitical tensions towards the end of the year, and the Ukraine conflict in particular, together with rising energy prices, interest rates and inflation are expected to continue contributing to an unsettled economic climate and market conditions,\u201d it added.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Arup has seen its annual profits drop by a third despite reporting a return to revenue growth.\u00a0 The consultant reported pre-tax profit of \u00a336.7m in the year to the end of March 2022, compared to \u00a354m the previous year.\u00a0 It came as \u201ccharges from sub-consultants\u201d and other project expenses rose a quarter to \u00a3425.5m, accounts …<\/p>\n","protected":false},"author":29901,"featured_media":380829,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[57172,552],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\t\n\t\n\t\n