RegistrationNumber:1312454 ArupGroupLimited FinancialStatementsandReports Fortheyearended31March2023 Amended Thesefinancialstatementsandreportsreplacetheoriginalfinancialstatementsandreportsforthefinancialyear31March2023.TheyarenowthefinancialstatementsandreportsofArupGroupLimitedfortheyearended31March2023.Theyhavebeenpreparedasatthedateoftheoriginalfinancialstatementsandreportsandnotatthedateofrevision.Accordingly,thesefinancialstatementsandreportsdonotdealwitheventsbetweenthosedates.Therehavebeennoamendmentsmadetothefinancialstatements. Contents Chair’sforeword1 Strategicreport3 Governancereport18 Boardremunerationcommitteereport24 Directors’report30 Independentauditors’reporttothemembersofArupGroupLimited34 Consolidatedincomestatement38 Consolidatedstatementofcomprehensiveincome39 Consolidatedbalancesheet40 Companybalancesheet42 Consolidatedstatementofchangesinequity44 Companystatementofchangesinequity45 Consolidatedstatementofcashflows46 Notestothefinancialstatements47 Chair’sforeword Lastyeartheworldfacedaseriesofsocio-economicproblemsandgrowinggeo-politicalturbulence.ThewarinUkraine,theemergenceofinflationasaprimarypost-pandemicissueformanyeconomies,andsignificantdifferencesinthepaceatwhichnationsemergedfromCOVID-19challengedall.Atthesametime,manycitiesandregionscopedwithfloods,fires,andothersignsofaglobalclimatesystemunderpressure.Arup’sresponseincludedclosepartneringwithclientstoaddressthespecificcomplexitiestheywerefacing,manyofwhichintensified.Wealsoprioritisedimplementationofourfirm-widestrategytoputsustainabledevelopmentattheheartofeverythingwedo,andwhichlastyearinvolvedstructuralreorganisation. Deliveringastrongcommercialperformance Wedeliveredastrongperformanceforthefinancialyearending31March2023.Ourrevenuegrewby14.2%to£2,163.6mandweachievedanoperatingprofitof8.4%(beforeapplyingourprofitsharescheme,whichbenefitsallofourmembersworldwide).Ourmembershipcontinuedtogrow,exceeding18,000attheendofthereportingperiod. Beyondourtop-lineperformance,ourenergyandwaterbusinessesbothdeliveredsolidgrowth,allowingustocontinuetoscaleandbroadentheworkweundertakeformanyofourclientsdirectlyengagedwiththeclimatecrisis.Ourenergyrevenuegrew22%duringtheyear,whileourwaterbusinessgrewby11%.Bothbusinessesarefirmlyfocusedonthefuture,workingwithclientstoacceleratetheglobalcleanenergytransitionand,inthecaseofwater,strengtheningthelong-termstrategicplanningofthewaterindustryandsupportingtheresilienceofthecommunitiesitserves. Implementingourstrategy Webeganlastyearwithaneworganisationalstructure,onethatallowsustodeliverourstrategymoreeffectively.FromApril2022,ourstructurehasallowedustostrengthenouroutwardfocusandhasadvancedourabilitytoofferourclientsglobalsolutionsthatalignwithlocalcontexts. Lastyearwasalsothemomentwhenartificialintelligence(“AI”)becameaquestionofwidespreadpublicdebate,withthelaunchofgenerativeAItoolsformassconsumeruse.OurworkwithAIisnotnewandlastyearsawusshareinsightspubliclyabouthowvariablethenaturalwater-holdingcapacityofworldleadingcitiesis.FromSingaporetoNairobi,theinsightswegainedfromdeployingourlanduseanalysistool,Terrain,allowedustostimulatediscussionsabouttheinterventionsspecificcitiescanmaketoincorporatenature-basedsolutions.Whiletherearenoeasysolutions,suchapproachescanimprovewater-holdingcapacityandreducetheseverityofsomefloodevents. Applyingourexpertise Itisalwayssatisfyingtowitnesshowourmembersapplythedepthandbreadthoftheirexpertiseandallowourclients’ambitionstotakeflight.Lastyear,wewelcomedcompletionoftwomajortransportprojectstowhichourexpertshavecontributedsignificantly,theElizabethLineinLondonandAdmiraltyStationinHongKong.Arup’sworkontheElizabethLinebeganwithitsinceptionanddesign,continuingthroughconstructionandoperation.Deliveringa10%expansiontocentralLondon’srailcapacity,thelineprovidesadirectandrapidlinkbetweenHeathrowAirport,thecitycentreandCanaryWharf.Ithasbeeninstructivetoobservehowquicklyforecastsofpassengerdemandweremet–andthenexceeded. InHongKong,ourexpertsplayedacentralroleintransforminganexistingrailstationintoafour-linemegainterchange.Today,AdmiraltyStationisthebusieststationonHongKong’sundergroundnetwork.Thenumberofplatformsdoubled,andconstructiontookplacewhiletheexistingstationremainedfullyoperational.Whileit’seasytosummarisesuchanachievement,Iknowhowmuchskillandcareisneededtodeliversuchasuccess. MeanwhileinCanada,theArthurJ.E.ChildComprehensiveCancerCentreinCalgaryreachedsubstantialcompletion.Alandmarkfacility,thecentreisduetoopenin2024asthecountry’slargestcancertreatmentandresearchfacilityandthesecondlargestinNorthAmerica. Arupspecialistsfromaroundtheglobecametogethertoworkonaprojectwhoseimpactislikelytoprovetransformational. Partneringforabetterfuture Aruphasalwaysembracedthechallengesthatcomewithcomplexity.Wehaveworkedcollaborativelywithothersformorethan75yearstocreatenewandbettersolutions.ItisoneofthereasonswhywearesopleasedtobeamemberoftheGlobalallianceoforganisationssupportingTheEarthshotPrize.Theprizeisanannualsearchforthebestsolutionsforrepairingthedamagehumanityhasdon