Despite the challenges of the last year, I am pleased to report that G&T has delivered another outstanding set of results.
Our immediate focus is on emerging from COVID-19 in a strong position by building even stronger relationships with our clients, employees and the communities in which we operate.
Moving forwards, whilst we are braced for change and tougher times, we believe that with change also comes opportunity, particularly in relation to the way we work, sustainability and digital acceleration.
A message from Adam Glover
While much of the year has been shrouded in political and economic uncertainty, it is the global impact of COVID-19 that has dominated the headlines. Naturally, our thoughts are with those who have been most impacted by this pandemic.
For G&T, the challenges of the year have highlighted that the firm’s continued success relies on two important components. Firstly, our clients and industry colleagues who give us huge support and provide us with the opportunity to help deliver some of the most complex construction projects in our core markets of the UK and US. Secondly, our Partners and employees, in all roles across the firm, whose quality, commitment, dedication, resilience and adaptability in challenging circumstances has even surpassed my own expectations.
Despite the challenges of the last year, I am pleased to report that G&T has delivered another outstanding set of results. Although that success is tempered by the impact that COVID-19 is having, and will continue to have, we are well placed to withstand those impacts.
Our financial year ended on 30th April 2020 so the COVID-19 lockdown which occurred in mid-March had a relatively minor impact on that year’s financial results. We anticipate a greater impact on our 2020/21 and future financial years as the full effect of lockdown and the subsequent major downturn in the economies of our core markets of the UK and US take hold. Pre-COVID we saw continued strong demand for our core services of project management, cost management, programme management and project controls. In particular we saw strong growth in Project Controls and Infrastructure.
That positive progress came to a sudden halt in March when a number of our projects were paused or delayed. A small number of projects were cancelled and the volume of new work slowed. This was followed by a relatively quick return to construction activity albeit with lower productivity on site.
In both the UK and US, the initial sharp fall in our fee income unfortunately meant that we had to take some corrective action to reduce our cost base and resize our business. Since that time, we have seen some stability return over the summer months, albeit at lower levels than we experienced pre COVID-19.
We remain concerned that our markets will be further impacted over the medium to long term as business investment and capital expenditure gets squeezed by the uncertainty surrounding Brexit in the UK, the fallout of COVID-19 globally and the need for companies to rebuild balance sheets, strengthen cash flow and reduce debt. It is likely to be a long road to recover to pre COVID-19 levels for many businesses across the country, including our own, and therefore we remain very cautious in the medium term, particularly in relation to the ability of a number of our sectors to recover quickly.
Our immediate focus is on emerging from COVID-19 in a strong position by building even stronger relationships with our clients, employees and the communities in which we operate. Although the future remains uncertain, we believe that the fundamentals of G&T’s business remain strong and our clear vision, values, culture and financial strength mean that we are well positioned to adapt to the market challenges and changes that lie ahead.
Although we have spent a significant part of the year working remote from our offices, we have remained committed to and continued to invest in our long term strategic goals. Central to this has been the continued strengthening of our GT Market Intelligence online platform and our continued championing and support of the Next Generation with our industry partners at NLA, LREF, REVO, CPA and WPA. In addition we have established an alumni to reconnect with former colleagues and have enhanced our commitment to supporting our communities and those less fortunate than ourselves through our Community Engagement programme of charitable giving.
Moving forwards, whilst we are braced for change and tougher times, we believe that with change also comes opportunity, particularly in relation to the way we work, sustainability and digital acceleration. This year has challenged everyone’s working and social practices but we remain confident that the need to congregate, learn and interact will continue to drive the need for high quality and innovative environments, spaces and buildings.
We believe that G&T’s continued commitment to its three core principles - delivering world class service levels for our clients - recruiting, retaining, developing and rewarding the best talent in the market place - and remaining financially strong and financially independent - puts us in a unique position to grasp that opportunity in our core markets of the UK and US.