Capita Symonds, the owner of Capita Percy Thomas, has admitted that its margins suffered in the first six months of the year
The firm, which is run by FTSE 100 company Capita, has blamed the decision to pull out of a major scheme in the Middle East for the downturn.
In annual results released yesterday, the firm revealed that while Capita itself has done well, the architectural and engineering division was disappointing.
Capita Symonds has in recent years become known as one of the most acquisitive firms in architecture, having swallowed the likes of Percy Thomas and Ruddle Wilkinson.
But the latest results will come as a blow. 'For a combination of reasons, we took the decision to withdraw from our Dubai Rapid Link contract and we have provided in full for the costs of our early exit,' the results report says.
'Consequently, margins for Capita Symonds are lower than last year, but are anticipated to recover in the second half of the year,' it added.
Capita non-executive chairman Rodney Aldridge agreed that the future was bright.
'There is good visibility of Capita's financial performance for 2006 and the board believes shareholders will be very pleased with the results for the year as a whole,' he said.
'Our businesses are in superb shape to deliver incremental growth, he added. 'The board therefore anticipates delivering strong growth in 2007.' by Ed Dorrell