David Chipperfield Architects made an £18,000 loss after tax and saw staff numbers drop again following a ‘transitional year’, according to the company’s latest accounts
Turnover at the London. Milan, Shanghai and Berlin-based company also dipped from £7.41million to £7.19million in the year ending December 2014 with the practice trimming its workforce from 92 to 75 ‘in line with workload’.
However the company, which recently won the prize job to convert the soon-to-be empty US Embassy in London’s Grosvenor Square into a hotel, boasted improved turnover per architect - £136,000 per head up from £104,000 in 2013 - and saw its gross profit percentage increase from 43 per cent in 2013 to 55 per cent last year.
Income in North and South America also blossomed, more than doubling from £681,000 in 2013 to £1.79million last year.
According to the directors’ statement, the practice remained confident of quickly bouncing back given the raft of recent project wins including ‘high rise towers in London and New York’, the new south west wing of the Metropolitan Museum of Art in New York and a major scheme for Selfridges.
The document reads: ‘Forecasts are strong for the following few years and we are expecting the practice to grow steadily.
‘Increased focus on billing accrued income on projects and on debt collection has resulted in a boost to cash balances.’
Chipperfield did not take home any director’s dividend, In 2013 he was paid £460,000 and in 2012 made £280,000.
Previous story (AJ 08.10.14)
Profits up but Chipperfield’s turnover and staff numbers drop
David Chipperfield Architects’ turnover and staff numbers have fallen by a quarter, according to the company’s latest accounts
The 25 per cent drop in revenue, from £9,823,030 in 2012 to £7,412,812 in the year ending December 2013, coincided with the ‘successful completion’ of a number of key projects, including the Museo Jumex in Mexico City and One Pancras Square at King’s Cross in London.
Although profits ballooned from £71,000 to £394,717, the workforce shrunk from 120 to 92 people.
According to the directors’ statement, the office had been ‘reduced in size, stabilised and [showed] a greater profit margin’ creating ‘strong foundations on which to build the future’.
The document reads: ‘The focus for the following years is on securing a reliable profit margin.
‘We have a stronger national [UK] client base than in previous years when a greater percentage of work was international.’
Among the practice’s current home-grown projects is a large residential scheme on the Colville Estate in Hackney, designed with Karakusevic Carson Architects (AJ 01.08.14), and the overhaul of the east side of Selfridges’ flagship Oxford Street store in London (AJ 05.06.14).
Chipperfield took home a director’s dividend of £460,000 in 2013 - a rise from £280,000 in 2012.