Foster posts £16 million loss – but turnover is up
Foster + Partners has made a pre-tax loss of £16.1 million, according to the company’s results for the year to April 2009
However, Norman Foster’s outfit – ranked third in this year’s AJ100 list of Britain’s biggest practices – recorded an eight per cent increase in turnover, despite the economic downturn.
The practice is blaming the drop on the huge company restructuring, which took place earlier this year and saw the business close two offices and make more than 300 people redundant.
Before taking into account interest on the company’s net debt of more than £300 million – a hefty outgoing of around £40 million – Foster + Partners had actually made an operating profit of £29.5 million.
Back in May this year the company’s chief executive Mouzhan Majidi (pictured left) told the AJ that things ‘hadn’t been as bad as we thought they might be’.
This optimism was echoed in Norman Foster’s chairman’s statement, in which he said he was pleased ‘the practice [had] reacted beyond expectation to the challenges posed by the severe downturn’.
It is understood Norman Foster received a £500,000 pay rise last year despite the losses.
In the 12 months to the end of April, Foster saw his wage increase to £1.7 million, making him the best paid director at the architectural practice