Architect records first-ever loss, putting it down to anticipated one-off expenditure

Internationally renowned architect Richard Rogers Partnership has posted its first-ever loss of more than 拢700,000.

The loss, shown in long-delayed accounts filed at Companies House this week for the year 2004/05, is the worst result the practice has registered since it began business.

The plunge into the red comes in stark contrast to the previous year鈥檚 profit of 拢712,000. Turnover also fell 7.5% to 拢16m for the year 2004/05.

In the company鈥檚 accounts, the shortfall is put down to 鈥渁nticipated non-recurring items of expenditure鈥�. Andrew Morris, senior director at RRP with responsibility for the accounts, refused to reveal what the one-off expenditure was spent on.

Speaking to 黑洞社区, Morris said: 鈥淚t was planned expenditure and we took it against our reserves. We retain 5% of revenue for a rainy day and situations like this. The profitability is fine.鈥�

The accounts reveal 拢460,000 worth of additional pension costs, thought to relate to the departure in 2004 of founding partners Marco Goldschmeid and John Young. Furthermore, RRP was forced to pay 拢122,000 back to the Inland Revenue as a consequence of legal changes to corporation tax rules.

Morris said turnover that year was lower because big projects, including World Trade Tower 3 at the site of Ground Zero in the USA and Bowater House in London, had not yet come through.

Richard Rogers鈥� 拢709,000 loss is a harder financial hit than befell former colleague Norman Foster. Earlier this year, it was revealed that Foster and Partners suffered a 拢544,000 loss.

Morris is confident that the practice will be back in the black in the next financial year. He said: 鈥淲e now actually have to be careful that we don鈥檛 take on too much work and that turnover doesn鈥檛 grow too quickly and become unmanageable.鈥�