GLOBAL – Consulting firm Watson Wyatt & Co. says its revenue growth in 2006 is expected to be driven in part by consulting related to legislative changes in the UK.

“Growth is expected to come from all segments, driven by benefits consulting related to legislative changes in the United States and the United Kingdom, new client wins and new offerings for existing clients resulting from the acquisition,” the Washington-based firm said.

It disclosed that revenues for Watson Wyatt LLP, the UK-based affiliate it bought recently, were around $428m for the period August 1 2004 to June 30 2005. Combined with Watson Wyatt's fiscal 2005 revenues of $737.4m, the merged firm would have had pro forma revenue of around $1.16bn.

Combined revenues for the 2006 fiscal year were expected to grow by 5-7%.

Fourth-quarter revenues rose 10% to $198.6m while income from continuing operations slipped to $12.3m from $12.7m a year earlier. This was due to a $6.2m charge due to a loss on a foreign currency forward contract related to the acquisition.

"The strong revenue growth for the quarter confirms that our services and our intense focus on client satisfaction are resonating in the market," said president and chief executive John Haley.

Revenues for the benefits group, 61% of total revenues, rose 8% to $122.1m. “Growth for both the quarter and the fiscal year came from new client wins in the retirement and health care consulting practices,” it said.

The firm also revealed a $10m contribution to its US pension plan.

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