黑洞社区

Architect Foster + Partners has written down the value of its business by nearly 拢130m after it revised forecasts for its international division.

In accounts filed at Companies House this week, Foster + Partners Group wrote down the value of goodwill held on the firm鈥檚 balance sheet from a total of 拢279m at 30 April 2012 to 拢150m at 30 April 2013 - a fall of 拢129m.

The writedown helped push the group to a pre-tax loss of 拢142m over the year, down from a pre-tax profit of 拢5.7m the year before. Group revenue fell 6% to 拢153m.

Foster + Partners Group said in its accounts that the 拢129m write down was related to the value of its subsidiary Foster Group (International), which it acquired in 2007, and Piers Heath Associates, acquired in 2011.

The accounts said the revaluation of the company was prepared as part of management discussions concerning a potential 鈥渇inancial restructuring鈥�. The Group currently has debts of 拢378m, on which it paid more than 拢40m in interest charges in 2013.

The company said the 鈥渢ough economic climate鈥� had resulted in 鈥渞evised operational cash flow projections鈥� in the 鈥渕edium-term business plans approved by the management鈥� and there had been a 鈥渞eduction in the recoverable amount鈥� that the group could get from the businesses.

It said the subsidiaries鈥� underlying profit had 鈥渇allen below last year鈥檚 level and the previous forecast鈥�, although the accounts do not disclose the amount.

The year saw revenue fall sharply in the firm鈥檚 Asian, Middle Eastern and African businesses, while it registered strong sales growth in North and South America and Australasia.

When asked about the potential restructuring, a spokesperson for the firm this week said it was still 鈥渘ot decided on any particular course of action鈥�. 

The writedown formed the bulk of a 拢136m charge for one-off items, which dragged down the firm鈥檚 pre-tax profit. The exceptional items also included a 拢3m charge related to the 鈥減otential鈥� financial restructure and a charge of 拢2.3m for 鈥渋nternal time invested in a research and development project鈥�.

The writedown slashed Foster + Partners Group鈥檚 total assets to 拢244m at 30 April 2013, down from 拢369m a year before.

Writing in the accounts Lord Foster, chair of the practice, said the 鈥渆conomic environment鈥� was 鈥渟hrouded in uncertainty鈥�.

Last week Foster + Partners published a snapshot of its results, which showed the firm had posted an operating profit of 拢37m for the year to 30 April 2013, down 20% from 拢46m the previous year.