Profits at architect Broadway Malyan have plunged 83% as a result of bad debt in the Middle East and redundancy costs
The figure fell from 拢2.2m to 拢363,828 in the year to 30 April 2009, despite the fact turnover was flat at 拢43.9m.
Its bad debts totalled 拢808,749, which the company said were largely caused by liquidity problems in the Middle East.
A company statement said: 鈥淭hese negative issues have inevitably impacted on trading results, which are, as a direct result, disappointing.鈥�
It did not state which clients in the Middle East were bad debtors. Its projects in the region include Commercial City in Dubai and the Al Bandar residential scheme for developer Aldar in Abu Dhabi.
It takes time and money to adjust. the second half of last year was painful for us Peter Crossley, managing director
Redundancy and other staff-related costs ran to 拢417,717.
Peter Crossley, Broadway Malyan鈥檚 managing director, said: 鈥淭he swift collapse of confidence and activity after the peak of the banking crisis in September 2008 saw a remarkable turnaround in the market, to which we needed to react. It takes time and it costs money to adjust to new market circumstances and the second half of last year was painful for us.鈥�
Despite the problems, the firm ended the year with shareholders鈥� funds of 拢5m, which was up from 拢4.7m last year. The highest paid director took home 拢376,425, which was down slightly on 拢383,426 in 2008.
Looking to the future, Crossley added: 鈥淲e think that there is every reason to be concerned about the market in the UK as fiscal stimulus is withdrawn during the next year and public sector spending is slashed. We are therefore investing in further expansion in Asia, growing our global masterplanning and urban design teams, building on our strong roots in health and education and selling these skills internationally.鈥�
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