Global professional services firm Turner & Townsend announced on Monday that its Middle East net revenues for the twelve months to 30 April 2024 increased by 18 percent to $156 million (£124 million). The firm's global net revenue in that period saw a 22 percent increase, reaching $1.6 billion (£1.3 billion).

“This buoyant growth [in the Middle East] has been supported by the demand for expertise in complex major programmes as state-backed giga-projects progress across the region to encourage economic diversification,” the firm said in a press statement.

Additionally, the high rate of investment and development in tourism, hospitality, and travel sectors, as well as supporting infrastructure is spurring business growth, the statement noted.

To support this growing activity, Turner & Townsend increased its Middle East workforce by 20 percent while overall headcount for the global business rose by 15 percent to more than 12,300.

Alan Talabani, Managing Director, Middle East, at Turner & Townsend, said: “Across the region we’re seeing major investment to diversify the regional economy – from growth in hospitality and aviation to data centres and intercity rail. Decarbonisation remains a priority to generate the power needed to build and serve our growing communities and economies, while mitigating the impacts of climate change.”

Real estate was the largest contributor in the Middle East as well, accounting for 64 percent of the net revenue at £79.5 million, followed by infrastructure, which accounted for 33 percent or £79.5 million.

Real estate was the largest area of Turner & Townsend business operations globally as well. The segment grew by 25 percent over the past year to £851 million ($1.07 billion) fuelled by demand in specialist markets including data centre development, and demand for tall buildings.

While growth was achieved in all seven regions, the Middle East was the fifth largest contributor to net revenue growth, after the US, the UK, Australia & New Zealand, Europe, and followed by Asia and Africa in that order.

Financial health

During FY 2024, the company maintained strong cash generation and free cash flow, despite decreases in both areas compared to the previous year. Free cash flow dipped slightly to £113.6 million from £120.4 million in 2023, while cash generation, defined as operating cash flow as a percentage of EBITDA, declined to 81 percent compared to 112 percent in 2023.

On the other hand, year-end debtor days remained constant at 50 days while average debtor days across the financial year improved to 52 from 59 in 2023, showing better overall receivables management.

Cash, net of overdrafts, was £128.4 million at 30 April 2024 (2023: £136.8 million). Funds, net of bank loans, excluding IFRS 16 lease liabilities, were £108.4 million at the year-end date (2023: £118.8 million).

Turner & Townsend is majority-owned by CBRE Group, the world’s largest commercial real estate services and investment firm.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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