WSP Group plc, the leading international business supplying specialist and integrated services in the built and natural environment, has reported its annual results for the year ended 31 December 2009. Chairman David Turner, said that it had been a “particularly testing year” and in the private sector the Group had dealt with some of the most difficult markets it had encountered, particularly in the UK and USA.

During the last twelve months WSP has had to make cutbacks of around 10% to the workforce. Employee numbers decreased over the course of 2009 to around 9,000 people from over 10,000 at the start of the year. In addition to reducing staff levels WSP has also taken a number of cost-saving measures that have affected remaining employees, including salary reductions and part-time working where appropriate.

The Group’s revenue reduced to £723.3m (a decrease of 4% from 2008) while operating profit, before exceptional items, fell to £41.3m after absorbing £6.2m of restructuring costs, resulting in an operating margin of 5.7%. However, the Group said that its financial position remains strong and that it had been encouraged by recent project wins, with its long-term order book standing at £959 million.

David Turner pointed out that although this was lower than last year, it reflected a business environment where clients are wary of making long-term commitments and instead tend to award work on a shorter term, incremental basis.

David Turner said:

“In the UK, private sector work was significantly reduced but we retain a fair share of the available work. Although clients remain cautious, there is some limited demand for new construction and new projects are now starting to be developed, although financial commitments are generally short term in nature, with phased front-end development and feasibility studies”.

Water business

Highlights include securing significant long term awards in the rail and water sectors. WSP said it had achieved further diversification in its developing UK water business which secured the Yorkshire Water AMP5 Medium: Sewerage Networks Stream Framework in joint venture with Barhale Construction. WSP has a 35% interest in the joint venture which will be involved in the concept development, design and construction of sewerage renewal and sewerage new build schemes across the whole of the Yorkshire region.