Strong organic growth continues for Scott Wilson

The design, engineering and environmental consultant has sustained another period of strong organic growth during the six months ending 26 October 2008, according to its latest interim financial results. Total revenue increased by 17.8% to £180.4 million, while operating profit rose 5.8% to £10.1 million to give an operating margin of 6.7% (2007: 7.2%). Organic growth was reported at over 10% in line with the group’s five-year financial target.

Geoff French, chairman of Scott Wilson, commented: “This is another strong performance which highlights the underlying resilience of our core business. Demand for Scott Wilson’s services remains at extremely high levels due to a large proportion of our work on infrastructure development, enhancement and replacement being underpinned by long-term budgetary planning frameworks.”

The PLC's financial review acknowledges that the market has become more challenging as a result of the global financial situation. A key feature of the period, it says, has been “the rapid expansion in our international regional businesses, offsetting some softening of selected markets in the UK.” Over the period, work sourced from overseas has contributed 31% of total revenue and the international division itself has grown sales by 44%. Scott Wilson operates regional businesses across Europe, Asia-Pacific, India and the Middle East.

Within the domestic UK business, Scott Wilson’s 310-strong environment group “continues to grow”. It is currently providing advice to the government on the sustainability of the eco town proposals and conducting an equalities impact assessment for Heathrow airport’s controversial third runway.

Looking forward to the second half of the financial year, Scott Wilson reports that the majority of its order book is already secure “and we foresee a continuing revenue growth in our international markets offsetting any continuing softening investment in our core UK market. We are also implementing sensible defensive measures across the business with a view to increased efficiency and to preserve cash.”

Recent UK government budget statements reinforce the position of firms like Scott Wilson to help mitigate the effects of recession. “We continue to advise our many public sector clients on potential acceleration of capital works projects,” the group states.

From May 2009, the business will be reorganised globally within five sectors, namely: buildings & infrastructure, roads, environment & natural resources, rail and strategic consultancy.

• Scott Wilson news release