AHR has written off £2.6 million after selling its Kazakh business for £1 in October 2018, company accounts reveal
Outposts in Kazakhstan, Poland and Russia were part of the re-formed AHR, when the practice split from Aedas in 2014.
But AHR’s 2018 annual report, published this week, shows the Kazakh office was flogged to its local management for almost nothing despite having net assets of £432,000.
The practice booked a £432,000 loss on the disposal, which lowered its pre-tax profit to £2.6 million, down from £3 million in 2017.
AHR also waived a £2.2 million intercompany loan to its Kazakh office and reduced the book value of its Polish business by £575,000 – amounting to a combined £2.8 million reduction to its assets.
At the end of 2018, AHR had net assets of £5.4 million, down from £7.3 million a year earlier.
AHR’s managing director for architecture Martin Wright said the Kazakh sale was made after a ‘strategic review of [AHR’s] international business’, adding: ‘We wish the team in Kazakhstan well for the future.’
Despite the sell-off, AHR saw both turnover and operating profit increase by almost £1 million in 2018, to £32.8 million and £3.1 million respectively.
Out of AHR’s total income, £20m was earned from UK architecture, £2m was from overseas architecture, and £10m was from its building consultancy arm.
The practice employed an average of 249 technical staff and 59 administrative staff throughout the year.