Consultant Davis Langdon has reported a 31% rise in pre-tax profit, from £24.5m to £32.2m, in its second year as a limited liability partnership (LLP).
The firm’s turnover rose 15%, from £106m to £122m.
The results, which have been exclusively revealed to Building, also contained senior partner Rob Smith’s salary. As Davis Langdon is no longer a private firm, Smith had to disclose that he earned £544,000 in the year ended April 2006, which is £37,000 more than last year.
The average profit share paid out to members was £181,000, compared with £162,000 last year. Twenty-six members have been appointed in the past year, pushing the number up to 177.
The group made a loss in its European operations, where turnover fell from £7.3m to £6.7m, but Smith said this was not unexpected. “At the moment in Europe we are not doing a huge amount of projects,” he said. “We are undertaking a review there and in the meantime really focusing on other areas where we excel.”
Smith added that, while he was initially uncomfortable at having to publicly declare his annual earnings, he hoped such disclosures might inspire young people to join the industry.
He said: “If graduates are aware of the levels you can reach in this industry, it may make more of them think about going into it.”
Jeremy Horner, Davis Langdon’s finance director, said the group was particularly pleased that its non-QS revenues were up to £46m. He pointed out that this figure was more than Cyril Sweett’s entire revenue, and showed that the firm was branching away from a traditional QS role.
He said: “Like any results, it’s good to see the forecast being exceeded. The extra has come partially come from the growth we have seen in our project management arm, although there has been at least some growth almost everywhere.”
Smith concluded that the results were encouraging and that the firm was on track to be worth £250m by 2012. He said: “The £250m is not a goal but a consequence. If we achieved that figure it would mean the business had moved forward and we were providing more services.”
Davis Langdon & Seah International, the group’s global business, has reported an international turnover of more than £200m – £31m ahead of its closest competitor, Turner & Townsend.
The £206m turnover exceeds all the other consultants that have decided to become limited liability partnerships: EC Harris, Gardiner & Theobald and Turner & Townsend.
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