Royal HaskoningDHV posted mixed financial results for 2016

23 March 2017 Consultancy.uk

Royal HaskoningDHV posted mixed results for 2016, with its net result of €12.1 million up on the year previous, but with revenues down from €654.5 million to €601.1 million. The firm's result in the Netherlands was particularly lacklustre last year, although its Maritime & Aviation and Transport & Planning enjoyed strong margins, while its UK operation picked up steam. The firm remains confident about its prospects going into 2017 on the back of increasing global problems in its areas of expertise.

Royal HaskoningDHV recently announced its 2016 financial results. The Netherlands-based engineering and consulting firm, which operates in 150 countries and is headquartered in the Netherlands, saw its net result rise slightly from €11.8 million in 2015 to €12.1 million last year. The firm’s EBITA margin improved 4.1% year on year. Revenues were, however, down slightly on the year previous, at €601.1 million compared to €654.5 million.

The 8% decrease in revenue are attributed by the firm to various factors; 3 percentage points is the result of differences in exchange rate, while 5% was caused by less work subcontracted out. The Netherlands based segment of the business, the firm's largest operations, recorded negative growth, while the Maritime & Aviation and Transport & Planning industry arms enjoyed strong margins. The firm’s operation in the UK, which includes 14 offices across the country, saw growth in 2016, following a lacklustre 2015.

Royal HaskoningDHV posted mixed financial results for 2016

2016 saw Royal HaskoningDHV make a number of strategic divestments, particularly in Asia and the Middle East to the firm’s strategic partners. Across the firm as a whole, headcount was down from 6,491 at the end of 2015 to 5,902 at the end of last year.

According to Erik Oostwegel, who recently ascended to the role, remarks, “We are pleased to report a solid performance in 2016, an improvement of our net result and a healthy order book of €281 million. Our company continues to drive positive change, helping clients use resources more efficiently and creating solutions which connect with people to make their lives easier, happier and safer.”

Large, global scale projects and programmes worked on by the firm in 2016 include the East Angelia windfarm development programme, the development of a polder in Singapore, the delivery of aviation capacity in Vietnam, a logistics park in Saudi Arabia, and a Nereda water treatment plant in Rio de Janeiro.

Outlook

The outlook for 2017 remains positive. Nynke Dalstra the firm’s CFO who was elected last years, says, “Our achievements during 2016 give us optimism for the years ahead. Our business has inherent strengths – great clients, people and projects – which create a sound and stable base." The firm says that it will continue to focus on future proofing businesses by focusing on global themes, such as urbanisation, water, mobility, resource scarcity and technology.

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PA Consulting results reveal record 14% revenue growth

17 April 2019 Consultancy.uk

Global professional services firm PA Consulting has reported another year of strong growth, outpacing the global consulting market significantly over the duration of 2018. PA’s revenue boomed by 14%, passing £455.8 million over the course of the year.

Founded in 1943, by Englishmen Ernest Butten, Tom Kirkham and David Seymour, the firm once known as Personnel Administration has since gone on to become one of the largest consulting firms in the world. PA Consulting Group, as it is now known, has over 2,600 professionals and a global presence spanning 18 countries. While turnover took a decade to recover from a rocky spell after the global financial crisis, PA Consulting is now firmly on the upward incline.

PA has booked strong growth in recent years, following its securing of private equity investment from the Carlyle Group in 2015. While the first full year of results following that move were slightly muted, due in part to the altering of how PA measured its results, the decision has clearly paid dividends since. Revenues jumped by 6% in 2017, hitting an all-time high of £400 million in the process.

Annual consulting revenues of PA Consulting versus UK market

Now, in the latest chapter of the firm’s rapid turnaround, the innovation and transformation consultancy has revealed things only got better in 2018. A set of record results released in April have confirmed that fee income rocketed up by 14% over the course of the prior 12 months, hitting £455.8 million. Considering the UK’s consulting market saw growth slow for the second year running (just 5.6%), PA’s performance is even more pronounced, especially in its first year of full results since influential Chair Marcus Agius stood down. 

The firm is also outpacing the global consulting market. Analytics firm Statista estimates that the consulting market expanded by 4.08% in 2018. As a result of such bullish demand, PA Consulting has also bolstered its staffing, boosting its consulting team’s headcount by 10% in the space of 12 months. 

PA’s team was further strengthened with its continued acquisition campaign, which brought three new firms into the fold during 2018. Boston-based innovation company Essential Design, specialist digital service design firm We Are Friday and London-based digital insight and strategy consultancy Sparkler all became part of PA over the course of the year. PA has also announced plans to recruit 400 professionals for its new digital centre in Belfast. 

‘Not traditional’

In terms of client work, in the UK PA supported Skipping Rocks Lab to create an edible alternative to single use plastic drink packaging, and worked on a notable restructuring project at disability charity Scope. Further afield, PA helped Norwegian authorities deliver their citizen-facing digital services, while in the US and India, PA partnered with Virgin Hyperloop One to build the first new mode of transport in a century, one that hopes to revolutionise travel. It even worked with United Nations to identify the technologies most likely to contribute to the achievement of the organization's Sustainable Development Goals.

Commenting on the year’s performance, Alan Middleton, PA Consulting CEO, said, “We’re not a traditional consulting firm and we think this is key to our ongoing success and why 98% of our clients recommend us… Our people are strategists, technologists, digital experts, consultants, designers, scientists and engineers – all of whom bring real-world experience, and apply it at pace. We offer the innovation, design, digital and transformation skills that our clients need to change, fast. There’s a sense of optimism behind our purpose. And it’s a feeling that inspires our people as well as our clients.”

The existing staff of PA also enjoyed a bumper year, as it was revealed that a refinancing manoeuver at the firm was expected to land over 1,000 employee shareholders a significant pay-out. The firm’s debt, which includes vendor loan notes put in place when Carlyle purchased the firm, is set to be refinanced in a deal worth £350 million.