Architect says clients hit pause button on jobs
The lingering impact of the pandemic, rising costs of professional indemnity insurance and bad debts in Asia meant Make pre-tax profit tumbled last year, the architect said in its latest report and accounts.
The practice behind the scheme to redevelop the former ITV studios headquarters on London鈥檚 South Bank, now subject to a planning inquiry after being called in last month, said an increase in revenue only came from the second half of 2021 with work in the final six months of the year 鈥渟table鈥� in the UK with 鈥済rowth mainly coming from projects in China and Hong Kong鈥�.
It said: 鈥淭he first half of the year reflected the continued impact of lockdowns and a slowdown in new projects caused by planning and financial uncertainties for clients.鈥�
And it added: 鈥淚ncreased expenses were seen in professional indemnity insurance premiums and bad debts in the Asian markets.鈥�
Turnover was up 5% to 拢18.8m but pre-tax profit slumped from 拢467,000 in 2020 to just 拢75,000. The accounts show the firm was handed 拢137,000 鈥� down from 拢274,000 鈥� in grants under government covid job retention schemes in the UK and Australia.
It said revenue in the first quarter of this year was 鈥渟trong鈥� and in the accounts, signed off at the end of last month, added that 鈥渢he economic uncertainty seen in 2022 has not had a detrimental impact on Make鈥檚 performance [this year]鈥�.
But it warned Brexit was hitting recruitment saying the ability 鈥渢o [bring in] and retain staff of appropriate experience and calibre has become more pronounced鈥ith the number and quality of applicants falling鈥�.
The accounts also show in August this year Make set up a new subsidiary in China which is based in Shanghai.
Revenue from the UK last year was close to 拢15m, with Asia and Australia combined accounting for 拢3.5m.
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