EC Harris鈥 parent company posts profit rise despite fall in UK profit margin
Arcadis has posted a 9% rise in full-year net profit in its full-year results to 31 December 2013, despite a drop in its UK profit margin.
Arcadis鈥 net profit rose to 鈧96.6m (拢80.4m), up from 鈧89m (拢74.1m) the previous year.
However the firm鈥檚 earnings before interest, tax and amortisation (EBITA) 鈥 a measure of operating profit 鈥 only grew by 1% to 鈧167.7m (拢139.7m), up from 鈧165.4m (拢137.8m).
Global revenue declined marginally by 1% to 鈧2.52bn (拢2.10bn), down from 鈧2.54bn (拢2.19bn), partly due to the relative strength of the euro compared to other international currencies in markets where Arcadis trades.
The parent company of UK-based consultant EC Harris said its UK division had a 鈥渟olid year with organic growth in revenues鈥, but its profit margin decreased in the region.
Arcadis said the margin drop in the UK was 鈥渕ainly due to a 鈧3m (拢2.5m) decline of the benefits from the partnership structure in EC Harris鈥.
Despite the margin drop in the UK, Arcadis as a whole achieved an operating margin of 10%, unchanged from last year.
Arcadis said its results were boosted by 鈥渟trong growth鈥 in emerging markets 鈥 including in Brazil, Asia and the Middle East 鈥 and work from multi-national clients.
Revenue dropped in Continental Europe, but the operating margin increased to 7.5%, which Arcadis attributed to merging operating models between itself and EC Harris in the region.
Arcadis said it expects to increase revenue and net profit in 2014 鈥渂arring unforeseen circumstances鈥.
Arcadis chief executive Neil McArthur (pictured) said: 鈥淲e have a clear roadmap to improve growth and raise margins going forward. Our promising order intake in the first weeks of 2014 gives us confidence for this year.鈥
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