Sales growth of 14% was driven primarily by the energy and water sector, resulting in pre-tax profits of around £39m, up 6% in 2022 but significantly less than the five-year average.
Arup warned that there had been a slowdown in the rate of conversion of new opportunities into contracted project work and increasing delays in collecting cash from customers, reflecting a tighter trading environment. This resulted in year-end net cash falling by £72m to £235m. As a result, Arup slowed staff growth to keep costs in line with sales. The number of employees is now almost 19,000, compared to around 14,000 five years ago, reports Contract Journal.
Alan Belfield said: “Beyond our revenue performance, our energy and water businesses delivered strong growth, enabling us to continue to deliver the work we do for many of our customers who are directly involved in the climate crisis to scale and expand.”
“Our energy sales grew 22% during the year, while our water business grew 11%. Both companies are firmly focused on the future, working with customers to accelerate the global transition to clean energy. In the case of water, they strengthen the water industry’s long-term strategic planning and support communities’ resilience to what works.”