Listed architect Aukett Swanke racked up further losses last year of £2.5m amid Brexit project delays, fierce fee competition and a slowdown its key United Arab Emirates market.
It warned that market prices had weakened considerably with design-led projects often awarded to other bidders at up to 50% Aukett’s own pricing.
In the UK alone, Aukett said revenue slump 25% last year bringing a cumulative fall of 45% over the past two years from £12m to £6.6m.
The group loss was greater than the hit it suffered during the financial crisis a decade ago and has seen the board call off its acquisition strategy and streamline headcount.
As a result, average staff levels fell 13% to 330 throughout the group.
Chairman Anthony Simmonds said : “Our company endured a perfect storm during the year ended 30 September 2018.
“Its architecture design operation in the United Kingdom suffered from a series of delayed projects and significant fee competition as a result of the continuing uncertainty of Brexit, while its business in the United Arab Emirates, although it started the year well, ended with a series of intermittent instructions, a reduced order book and debtor provisions taking their toll.
“Revenue for the year fell by 22% to £14.38m, which was too far and too rapid for us to address by cost reductions so that the year-end loss extended to £2.54m (2017: loss £325k).
“However, the recent relocation of the UK office to Bonhill Street and property consolidation in the UAE will achieve considerable reductions in excess of £400k per annum in our fixed costs in future periods.”
from Construction Enquirer http://www.constructionenquirer.com/2019/01/30/perfect-storm-pushes-aukett-deeper-into-the-red/
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