Stirling Prize-winner Allford Hall Monaghan Morris saw pre-tax profits slip by 57 per cent in the year to March, according to the company’s latest set of financial results
Despite an increase in turnover from £27 million to £28.6 million, net profit before tax fell from £4.5 million in 2014 to just £1.9 million in 2015.
However, profits after tax dropped less sharply – from £3.6 million to £2.4 million - due to a UK tax credit for research and development and a corporation tax payment to US authorities.
A statement from the company, the third biggest architectural practice in the country, said that the 6 per cent increase in turnover reflected ‘growth in the UK and increased business in the US’.
Gross margins slipped back from 52 per cent to 50 per cent, although the company said that “operating margins and trends no longer give insights to underlying performance as they are stated after, and distorted by, profit share”.
The past year saw the company further developing its profit share scheme to include more recent starters and increase the distribution of profit from 9 per cent to 13.5 per cent of salaries.
During 2014-15, average full time equivalent headcount was at 299 - up by 16 per cent compared with the previous year. The accounts showed staff costs up from £12.2 million to £15.7 million.
To support the growth in head count, the company spend money fitting out additional premises for office space, meeting rooms and a new model shop within its Morelands headquarters building in London and new premises for its team in Bristol.