Aukett Swanke has blamed a slump in the UK construction market for the firm’s pre-tax losses, which more than tripled last year
Its interim financial results showed the company – the only stock market-listed architect – firm lost £1.22 million before tax in the six months to the end of March, compared with £358,000 in the same period last year.
The company’s overall revenues were down 18 per cent from £9.07 million to £7.41 million, with the largest proportion attributable to UK operations, which it said suffered from reduced activity and delayed starts.
Aukett Swanke chief executive Nicholas Thompson said: ’Revenues were severely impacted by the continuing stagnation within the UK construction market, which currently shows no clear-cut evidence of recovery.
‘Our overseas operations are beginning to benefit from reorganisation but, overall, as previously highlighted, we expect a group loss for the full year, despite a better second half.’
The practice, which dropped from 23rd to 52nd in the AJ100 rankings this year, says it could claw back some of the losses by a relocation to new offices, on which it will pay no tax for the next two years.
The company’s United Arab Emirates revenues also fell by 12 per cent, although the firm said that it expects to recover these by the end of the year.
A mixed picture in European offices saw reduced losses in Russia but profits in Turkey over the six months.
During the period, the practice completed two buildings in Cambridge and the Alaïa store in New Bond Street for client Richemont.
It continued work on a number of high-profile apartments at One Hyde Park in London and overseas in Moscow, as well as receiving instructions in a new market, China, for villas in Beijing, the company said in a statement.