Archial plunges deep into the red
First-half pre-tax losses of £4.3 million for Archial – compared with a £1.6 million profit in the same period last year
Cancelled projects have already forced Archial, one of only two dedicated architectural practices listed on the London Stock Exchange, to close offices and lose dozens of staff.
With year-on-year turnover down by £4 million to just over £18 million, chief executive Chris Littlemore (pictured) has warned that more offices will have to close, with more job losses.
Cost-cutting measures will save £4.1 million for the whole of 2009, he said, while the firm’s forward-order book has grown to £34.7 million, of which 37 per cent is public-sector work.
But he notes: ‘The unprecedented trading conditions in the UK over the past 12 months have led to a portion of the group’s secured work being cancelled or postponed, and the directors feel it is now prudent to make a provision against trade and other receivables of £3.85 million.’
Following the departure of Will Aslop ot RMJM (click here for story) Chris Littlemore, CEO of Archial Group, told the AJ how the move would impact on the existing practice: ‘The Archial Group, the owners of Alsop (Consultants), agreed a new working relationship with Will Alsop at the beginning of August 2009. At that point Will Alsop entered into a consultancy arrangement with the Group and left full time employment.
‘Irrespective of other arrangements that Will Alsop may make in the future with the Group or other organisations, the ongoing and emerging work in Alsop (Consultants) has been and continues to be delivered by the established and highest quality team of directors and staff there, led by Duncan Macaulay and supported by Jonathan Leah, Max Titchmarsh, Shaun Russell and Maurice Evans and the associates Ed Norman, Wolfgang Frese and Uwe Frohmader.
‘The Alsop brand of architecture and delivery from this studio is maintained, and continues to flourish. Under this management, supported where appropriate by the much larger resources of Archial Architects where working together, the business continues to be a significant force in the Architectural industry.’