黑洞社区

The UK鈥檚 largest architect, BDP, has suffered a 60% drop in pre-tax profit, its latest accounts have revealed.

The accounts, for the year to the end of June 2011, show that profit before tax fell to 拢2.8m from 拢6.8m the previous year while turnover dropped 17% from 拢96m in 2010 to 拢80m this year.

Despite the gloomy results, the pay of the highest paid director - who is not named in the accounts - rose from 拢248,000 a year to an annual figure of 拢284,000.

The accounts were published as BDP confirmed it was closing four of its regional offices - Belfast, Liverpool, Winchester and Edinburgh.

The 900-strong practice also last week saw the shelving of the Tithebarn, its 拢700m retail scheme in Preston, Lancashire, for Lend Lease, following the withdrawal of anchor tenant John Lewis. 黑洞社区 revealed last month that the firm is preparing to make up to 100 of its staff redundant due to public spending cuts and the delay of a hospital project.

Chief executive Peter Drummond told 黑洞社区 that the results were 鈥渄isappointing鈥�, adding that profitability had been hit because of the firm鈥檚 determination to try to protect salaries and resources. He said the firm鈥檚 drive for international growth was accelerating, with a larger office in Shanghai opened just two weeks ago.

Drummond added that the highest paid director was retiring early, which boosted his salary.

BDP鈥檚 turnover in the UK fell from 拢85m the previous year (to June 2010) to 拢62m, while rising in the rest of Europe from 拢4.4m to 拢5.2m and in the rest of the world from 拢6.4m to 拢12.2m over the course of the year.

The accounts also noted that no dividend had been paid to shareholders in 2011 and that the overall pay package for all directors had fallen from 拢7.2m the previous year to 拢5.9m.

The company also said that BDP Group had 鈥渟ignificant cash resources鈥� made up of 拢8m plus 拢12m invested in a corporate investment fund and a 拢1m overdraft with HSBC due for renewal in April 2012.

In terms of the office closures - a development that was not predicted in the accounts - BDP鈥檚 Northern Ireland office in Belfast will close its doors at the end of the year. It currently employs 18 people and has been operating since the sixties. The practice pointed to a lack of work as a reason for the closure.

The Winchester office is also expected to shut, while the Liverpool office will move to nearby Manchester. Staff from Edinburgh will move to Glasgow.

A spokesman for Tithebarn developer Lend Lease said the firm was already working on proposals for a new project but was unable to say whether BDP would be retained as architect.
The controversial scheme was first proposed in 2000, but only received planning permission in November last year on appeal.