Foster + Partners has narrowed its pre-tax losses despite having to cough up around £40 million in debt interest repayments last year
The company’s failure to make pre-tax profits is due to the group’s £327 million debt (2009-2010) which is down from £340 million in the previous year (2008-2009). Its creditors demanded close to £40 million in repayments.
Norman Foster’s practice for the year up to 30 April reduced its pre-tax loss by £1 million to £15 million. Underlying operating profits were £25 million.
Foster told The Financial Times that the practice had ‘navigated through a difficult year, with excellent results, both in terms of creative achievements and financial success.’
At subsidiary Foster + Partners Limited shareholders however benefited from a £6.8 million dividend and £37 million profit was transferred to reserves. The wage of the highest-paid director, understood to be Foster, was £1.8 million.
Turnover dropped by 13 per cent from £152 million (2009) to £134 million. More than 90 per cent of the company’s work was outside the UK. Turnover dropped across the globe apart from in the Middle East where the company’s sales grew 28 per cent to £60 million.
A quarter of the practice’s staff was shed in the period leaving just 936 on the payroll, including 740 architects.