Broadway Malyan has said it will launch a business strategy with proposals for ‘new markets and service lines’ after it reported falls in profit and turnover for the second year in a row
The accounts for Broadway Malyan Holdings show its overall profit shrank by 21 per cent from £1.3 million to £1 million in the year to 30 April 2019, while turnover dipped from £48.2 million to £47.1 million – down from £50.6 million two years ago.
The AJ100 practice blamed uncertainty surrounding Brexit and an industry-wide squeeze on fees for a 14 per cent fall in its UK turnover, which made up less than 40 per cent of its total income for the first time ever.
The group’s income was boosted by growth in the Middle East and Asia, but fees fell in continental Europe and the rest of the world.
Broadway Malyan also reported a fall in its cash position from £1.9 million to £0.7 million as it invested in studios and made contributions to its employee ownership fund.
Ian Apsley, who became the group’s managing director in 2018, said directors at the firm ‘will shortly launch their new business strategy which will include proposals for new markets and service lines over the next three to five years’.
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Apsley also revealed that he ‘anticipate[s] that the coming year will be even more challenging’ in the UK, where ‘the industry as a whole is seeing a squeeze in fees’.
‘There is no doubt that the future environment in the UK is likely to be difficult for a prolonged period as the divestment from the EU is managed, and there is ongoing regulatory tightening in the sector,’ he said.
‘Global economic factors will always have an impact on our performance but the challenges we face as a practice, and as an industry, are more fundamental.’
Apsley also struck a cautious note about the Middle East and Asia markets, where the firm saw its total fees increase by 24 per cent to £19.3 million.
He said that the Middle East market was ‘challenging’ as it was difficult to deliver services ‘efficiently and without risk’, while the Chinese market faces uncertainty because of protectionist policies from the Chinese and US governments.
Broadway Malyan’s average employee tally remained effectively unchanged (496) since last time.
The practice has been contacted for comment.