Architect blames recession in the Middle East and UK for 27% fall in turnover
Architect Aukett Fitzroy Robinson has dropped 拢1.2m into the red for the six months to 31 March due to the depressed UK property market and the economic malaise in the Middle East.
Over the period turnover fell 27% 拢11.3 to 拢8.2m and the loss compared to a 拢1.2m profit in 2008.
The company was also hit by restructuring costs of 拢945,000 that included staff cuts that will see the company reduce headcount by 36%.
Despite the gloomy news chief executive Nicholas Thompson was confident about the long-term future.
He said: 鈥淎t this moment we see no firm evidence of any upturn and therefore in the short term management attention will focus on the continuing need to lower our cost base to reflect current trading activity. In the longer term, when markets recover, we will revert to our corporate objective to increase revenues to 拢25m."
The company
ended the period with net cash of 拢238,000 compared to 拢1.7m this time last year.It said the economic problems in the Middle East had reduced revenue by 拢585,000 as a result of renegotiated or delayed fees. It was also hit by 拢120,000 in staff costs after a project in the region that had been won in February was withdrawn.
Turnover breakdown
UK - 拢5.5m (2008: 拢8.2m)Continental Europe - 拢757,000 (拢1.2m)
Russia and former CIS - 拢1.91m (拢1.87m)
