Turnover at Coal Drops Yard architect also tumbles
Coal Drops Yard architect Heatherwick Studio has reported dramatic drops in both turnover and profit in the practice鈥檚 latest annual accounts.
The business, founded 25 years ago by Thomas Heatherwick, said turnover was down 30% to 拢19.05m in the year to March 2018.
Pre-tax profit was 拢1.72m, down 82% from 2017鈥檚 拢9.5m 鈥� but the firm was handed a 拢984,466 tax rebate for both years. Part of the tax boost was a 拢432,250 break for research and development expenditure.
The reporting period covered the financial year in which scheme.
The strategic report section of the annual report 鈥� signed by Heatherwick 鈥� said the decrease in income and profit 鈥渨as anticipated鈥� and had been 鈥渓argely due to the phasing of ongoing projects as they entered their latter stages, and new projects as they started their concept stages鈥�.
It added: 鈥淭he studio has increased its investment in staff training, which has impacted the staff utilisation rate and overheads rate.
鈥淭he studio was appointed for further exciting new projects during the year and after the year end, and expects to increase profitability in future years. Many of these projects span several years, which secures income for the studio for the future. The new projects have also driven a growth in staff numbers towards the end of the financial year.鈥�
Despite referring to the growth in staff numbers, the accounts did not provide a headcount figure. However, the recent wins and ongoing projects referred to would include , in conjunction with KPF, and Pier 55 in New York.
The accounts did give a breakdown of the year鈥檚 turnover by global region, though, with 拢5.16m generated from UK work, 拢3.57m from Asia and 拢10.32m from the 鈥渞est of the world鈥�. Proportionally, UK work accounted for a slightly larger share of the practice鈥檚 revenue during 2017-18 than the previous year.
The accounts also detailed that 拢2.55m in dividends on equity capital were paid in 2017-18, down from 拢3.48m the previous year. Heatherwick is the sole shareholder in the business.
Coal Drops Yard opened in King鈥檚 Cross last September as part of Argent鈥檚 redevelopment of the north London area. The 拢100m scheme was completed by Bam.
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