Firm sinks into red for third year running
AHMM has made a pre-tax loss for the third year running, the architect鈥檚 accounts for the year to March 2023 have revealed.
The firm sank 拢1.9m into the red, up from a pre-tax loss of 拢1m in 2021-22 and a pre-tax loss of 拢503,484 the year before.
The practice behind the makeover of the IBM building on London鈥檚 South Bank said in the six months after the 2022-23 accounting year, it had started a planned 20% reduction of its workforce, along with a review of spending across all parts of the business. It added that it had triggered a break clause in one of its studios that would cut 25% of its UK studio space from this year.
In a note accompanying the accounts, the firm said the war in Ukraine and knock-on impact of inflation and rising energy costs had hit its bottom line.
鈥淭hese factors, in conjunction with the Bank of England鈥檚 decision to increase interest rates as a means of countering the jump in inflation have adversely impacted some of our clients鈥� financial assessments of their projects, causing some to be paused indefinitely or else their start to be deferred for a period,鈥� the report said.
It added that changes to building regulations in the wake of the Grenfell Tower disaster and 鈥済reater scrutiny and political pressure鈥� in relation to the carbon impact of new-build projects versus refurbishment were also factors that impacted on clients鈥� 鈥渨illingness to proceed with certain projects鈥�.
Revenue at the business during the period rose 14% to 拢50m.
No comments yet