White Young Green ups profit 18%

White Young Green has announced an 18% increase in pre-tax profit to £11.1m. The multidisciplinary consultant’s turnover was up 16% to £167.5m for the year ended 30 June 2006, according to its preliminary results. Last year WYG made £9.6m pre-tax profit on a £143.9m turnover.

Chief executive John Purvis said cost consultancy services accounted for between 12% and 15% of turnover. He plans to grow this to 20%. The firm broke into the UK QS market in March with the acquisition of Tweeds for £11m.

Purvis said further acquisitions of small QSs in the UK were possible in the geographical areas where Tweeds’ coverage was weak: the Southwest, Northeast and Scotland. But he added that he was also considering a strategy of organic expansion into these regions.

WYG bought a QS company in Ireland, Nolan Ryan, in June for £9.7m.

Purvis put the strong results down to growth of business in the private sector of 26%. It saw a particular jump in leisure and retail work, which was up 46%. The firm’s pubic sector work increased by 9% during the financial year.

WYG’s turnover splits into 48% private sector work and 52% public sector.

The firm recently picked up two MOD deals worth a combined £9bn. It will oversee the £8bn Allenby/Connaught scheme over 35 years and it has also been appointed as a certifier for the £1.15bn contract to redevelop the MOD’s Northwood HQ.

WYG now employs 2,450 people.

Purvis said: “Tweeds is a tremendous asset to Whit Young Green. I would like to see cost consulting account for 20% of our turnover at some stage... The acquisitions we have made in the second half of the year should mean our growth next year will be significantly ahead next year.”