HOK International says it is not worried by a 10 per cent rise in its operating loss in 2015
The international arm of the US-based giant made a loss of £443,277 despite an increase in turnover to £22 million – up 5 per cent on the previous year.
It blamed a number of costs, including a loss of £224,500 relating mainly to a project in Turkey, an increase in salary costs of £340,000 and foreign exchange losses of £245,900.
The company’s figures, which include the output of its London office, also saw an increase of £232,300 from overhead recharges from parent company HOK Group and an increase in its rent and rates costs.
Finance director Andrew Childs said: ‘It was unfortunate and disappointing that the improvements in turnover and gross profit margin did not materialise in an improvement in operating result.’
HOK International reported that its current liabilities stand at £10.2 million.
However, Childs said that, with £4.3 million of the total owed to HOK Group, the situation was ‘not as serious as it may initially appear’.
The turnover figure came from a 42 per cent increase in consulting income and 27 per cent in interiors, with just 2 per cent coming from architecture.
Childs said the practice, which worked on the Francis Crick Institute with PLP (pictured), had seen an 88 per cent increase in continental European work and a 24 per cent rise in the rest of the world.
However, it saw a13 per cent decrease in turnover in this country, with income slipping 13 per cent to £10.7 million ‘as significant UK projects moved towards completion’.
Childs said: ‘The completion of several significant projects – The Francis Crick Institute and the St Bartholomew’s and Royal London Hospitals – will take time to replace, although project wins at the Universities of Glasgow, Cardiff and Kuwait and an arena for FC Barcelona have helped in this respect and represent work in new markets.’