Architect鈥檚 UK operations turn 拢1m loss into 拢22k profit through 66% cut in costs, while planning to focus on commercial sector

Architect Aukett Fitzroy Robinson鈥檚 UK operations generated profit of 拢22,000 as opposed to a loss of over 拢1m in 2009, despite subdued commercial activity.

Its half year results show that while UK revenue fell 41% it had managed to reduce overall UK costs fell 66%.

Overall the results show Aukett has achievd a 75% fall in losses to 拢299,000 to the six months to the end of March, and a reduction in net debt to below 拢1m.

The company also said it has recovered a further 拢1m of 鈥渙utstanding monies鈥� in April and May and that it expected to add over 拢1.2m to its cash flow from its successful court case against developer Simon Halabi.

Aukett won its case for 拢1.6m in unpaid fees for work on Mentmore Towers in Buckinghamshire and two properties in the West End won earlier this year.

Halabi subsequently became bankrupt, owing the architect more than 拢1m in legal fees and costs.

Aukett said today it expects to receive the money once the properties in question are sold.

Looking ahead, the architect said it was confident the fall in public sector spending in the UK was 鈥渦nlikely to have any direct impact on the UK operation as less than 5% of revenue is from this source鈥�.

The focus for the business in the UK will be on the capital and in particular the commercial office refurbishment market.

In Russia a profit of nearly 拢2m in 2009 turned to a loss of 拢342,000, and revenue fell to 拢181,000 (2009: 拢1,908,000). This downturn was blamed on projects being put on hold by clients or taken over by banks.

Nicholas Thompson, Chief Executive Officer of Aukett Fitzroy Robinson said:

 鈥淲e have maintained a strong and highly skilled team of people which has enabled us to continue to win commissions in a difficult market. This, coupled with the awards we have won demonstrates the regard with which our work is held within the industry.

 鈥淲ith a stable cash position, strong brand and track record in commercial markets that are experiencing signs of recovery, we believe that we are well placed to benefit from any sustained upturn as confidence and funding returns to the property development market.鈥�

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