WSP plans for future without Cole

Listed multidisciplinary consultant WSP is drawing up a succession plan for when Chris Cole, its chief executive, retires in five years’ time.

Cole, 58, who has been the boss of the company, either as managing director or chief executive since it went public in 1987, said: “A succession plan is being put in place at the moment. I see the next five years as very important.”
The company is in the second year of a five-year financial growth strategy. It aims to increase turnover 10% a year and reach £750m in 2009.

In 2005 turnover rose 16%, to £374m, and it is understood that it will increase 15% this financial year to £430m. Operating profit is expected to be £28-29m. It was £20.8m in 2005.

The firm also wants to increase margins 0.5% a year, to 8% in 2009. Cole said this would put WSP in the upper quartile for margins among consultants. The number of employees is also expected to reach 10,000 in 2009, compared with 6,700 today.

Cole commented on WSP’s well-publicised problems in Indonesia, where the World Bank has accused it of corruption.

He said: “Investigation continues in a difficult part of the world. Aid work of this nature accounts for no more than 1% of our business.”

The issue surrounds £159,000 of alleged payments on contracts worth £3.1m. WSP had two employees in Indonesia at the time – one local and the other an expatriate.

The company is understood to have moved the expatriate to another job, while the Indonesian remains employed by WSP in the country.

Cole also confirmed rumours that WSP has received approaches from several potential buyers since the start of the decade.

However, he added: “There was never a serious approach – I wouldn’t allow them to get serious. We aim to be the consolidator, not the consolidated. We have got far too much more left to achieve.”

Meanwhile this week WSP joined up with one of India's largest property developers to carry out design and engineering work in the country. The joint venture with DLF will be staffed by designers from India and overseas and will undertake large projects across the country.