Turner & Townsend鈥檚 shelved flotation cost the consultant 拢1m, City sources say.

The group postponed plans to list last week amid concerns over poor market valuations.

One source said: 鈥淚n addition to the cash the problem is the massive tie-up of management time, which can be colossal. It can take up a third of management鈥檚 time over six months.鈥�

A T&T spokesperson refused to comment on the fees or the management time taken up on the deal but said the cost was 鈥渧ery easily absorbable鈥�.

He said: 鈥淭he business has never been in better shape. More importantly, this is a deferment so all the work done hasn鈥檛 been written off.鈥�

City sources said the impact of the credit crunch had halved its initial valuation of 拢200m. They said an earlier profit/earnings ratio of 17 had dropped to 9, giving a value of 拢105m.

Another source said: 鈥淭he problem in the market is volatility not weakness. After six or seven stable weeks it might be opportune to strike again while the iron鈥檚 hot.鈥�

The share prices of consultants Cyril Sweett and Baqus have both fared badly since they floated. Cyril Sweett鈥檚 shares have fallen from 拢1.10 when it listed in October to 81p this week and shares in Baqus were trading at 9.25p, down from its listing price of 12.25p in December.

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