3DReid has reported a slump in profits of more than 70 per cent
The AJ100 practice, which has five studios across England and Scotland, recorded profits before taxation of £134,022 for the year ended 31 October 2017, down from £472,959 in the previous 12 months.
Economic conditions were blamed for the fall, with directors citing ‘significant external commercial challenges’.
A spokesman said two major projects were scrapped after a key client got into difficulty.
‘Consolidated operating profit of £212,610 was delivered after adjusting the carrying values within the balance sheet in respect of work in progress and debtors following cessation of two major commissioned projects, resulting from the financial failure of a significant PLC developer and contractor,’ said the spokesman.
‘3DReid’s new project wins, strong balance sheet, robust financial standing and subsidiary structure ensured that these write-offs could be sustained, allowing the company to regroup and deliver additional income through further secure workload within the first half of 2017/18.’
Turnover was close to £10 million, a rise of 6.5 per cent on the previous year.
3DReid last year won a spot on an architectural framework supporting Gatwick Airport’s planned £1.15 billion regeneration.