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Turnover dips but profits up at Grimshaw

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Grimshaw Architects has posted an increase in profits of 7 per cent for the last financial year, despite a fall in turnover

Turnover dropped from £38.6 million to £36.1 million for the year to March 2015, although the company said that this was due to a ‘lower proportion of projects where Grimshaw acted as prime consultant and recharged sub-consultant fees to the client’.

After deducting these, and other direct costs, gross profit rose from £25.9 million to £27.6 million, while operating profit jumped substantially from £3.4 million to £4.9 million.

Neil Boyde, Grimshaw’s chief financial officer said: ‘These results are highly encouraging, reflecting strong commercial performance as well as enhanced financial control.

‘Grimshaw continues to grow into new markets and develop a strong reputation in a wide range of sectors.’

He said that the increase in profits gave the firm opportunities to undertake new projects such as the new Eden project in China (AJ 28.09.15).

The results showed that gross profit per employee increased from approximately £75,000 to £85,000 in the year.

However, UK turnover was down from £12.4 million to £10.7 million. Projects in the USA accounted for 24 per cent of group turnover, with Australia counting for 16%

During the accounting period Grimshaw secured a range of projects including the Royal Dublin Society Leinster Arena in Dublin, a new terminal for Lima International Airport in Peru, 447 Collins Street in Melbourne for developer Mirvac, and the expansion of the Northern Line in London.

The year also saw the completion of the Fulton Center in New York after a ten year programme.

Looking forward, the firm said that the key risks to the business include increased competition for new commissions, difficulties recruiting and retaining staff, cash flow adequacy and operating in new jurisdictions and cultures.


Previous story (AJ 02.01.15)

Profits soar 50% at Grimshaw

Grimshaw has reported a 50 per cent increase in profits as revenue growth ballooned both in the UK and abroad

Operating profits were £1.8million for the year ending 31 March 2014 compared to £1.2 million in 2013 – accounts filed with companies house revealed.

The figures – which relate to the high-profile outfit’s London, Australia and Doha studios only – showed an 18 per cent increase in turnover to nearly £30 million.

Revenue grew 16 per cent in Grimshaw’s London office while the firm’s international workload rose by 19 per cent.

The AJ100 studio’s US operations – excluded from the trading figures – contributed a further £5 million towards the company’s overall turnover.

The figures mark a second year of revenue growth for the outfit which reported a 2.7 per cent dip in turnover in 2012 when it was forced to let 12 per cent of its architects go.  

Key projects won during the period include a £6 billion airport project in Istanbul and the new Koç Contemporary Art gallery in the same city.

Grimshaw also won a design contest for redevelopment of Curragh Racecourse in Ireland and completed work on the Highpoint Shopping Centre in Melbourne and a new concourse for Heathrow’s £2.5 billion Terminal 2. Last month the company also won permission for a new office headquarters scheme within its wider City Quays masterplan for the city’s Clarendon Dock.

Grimshaw’s chief financial officer, Neil Boyde said: ‘Performance for the year ended 31 March 2014 was highly satisfactory and the group is in a healthy financial condition.

‘There is scope for further improving profitability and we are on track to achieve this in the current financial year.’

According to a statement from the company further recent UK and international wins will provide ‘solid foundation for the next two years’.

These projects include a major expansion of Jorge Chávez international airport in Lima and new commercial work in Australia.

Grimshaw completed New York’s £900 million Fulton Center transit hub in November.

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