HOK International has blamed Brexit and problems on an unnamed Middle Eastern project for a 400 per cent rise in its operating losses last year
The international arm of the US-based giant saw its operating loss reach £2.3 million during 2016, up from £443,300 the previous year.
In its financial report for the year, HOK International said its parent company had provided assurances that it will continue to tolerate the losses for at least another year.
It said: ‘The directors have received confirmation, in writing, of the continuing financial support from the ultimate parent undertaking to the extent it is required for a period for at least 12 months from the date of approval of the financial statements.’
Realised and unrealised losses due to foreign exchange rates leapt from £180,000 to £471,000 over the year.
The financial report also showed that turnover dropped from £22 million in 2015 to £19.5 million last year.
However, in addition to the Middle East project, the company’s financial performance was adversely impacted by ‘market sentiment post-Brexit referendum and realised and unrealised losses in foreign exchange’.
The Middle East project occasioned a 112 per cent decrease in turnover in the planning section of the business – down from a profit of £1.5million in 2015 to a loss of £182,000 last year.
HOK International, which recently hired Heatherwick Studio project leader Andrew McMullan to become the new vice-president of its London office, said that it would not be issuing any dividends this year.
Despite the losses, remuneration for directors was up from £959,000 to £1.2 million.