Practice says halting work in Russia following Ukraine invasion cost 拢1.2m

David Chipperfield Architects has posted a pre-tax loss of 拢274,334 for 2022 despite increasing turnover by 33% during the year, the practice鈥檚 latest accounts reveal.

According to its figures for the year to 31 December 2022, revenue increased from 拢9.25m to 拢12.33m during the 12 months. But 2021鈥檚 modest pre-tax profit of 拢179,988 was followed by a plunge into the red.

Chipperfield said its finances took a 拢1.2m hit as a result of its 鈥渋mmediate withdrawal鈥� from Russia, prompted by the onset of war in Ukraine in February 2022. The practice has stated it will not recommence any work in Russia until all troops are withdrawn from Ukraine.

Nevertheless, the practice said it had increased headcount during 2022, with average architectural staff numbers of 76 鈥� up from 63 the previous year. Management staff also increased from nine to 13. Total staff numbers averaged 109 during the year. The figure for 2021 was 93.

A strategic report accompanying the accounts said the larger headcount reflected an investment in staff and 鈥渂uilding the practice structure to support long-term sustainable growth鈥�.

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Source: David Chipperfield Architects

David Chipperfield Architects and Zeidler Architecture鈥檚 proposals for the Canadian parliamentary estate

The practice said that its profit had also been impacted by 鈥渟ignificant鈥� ongoing investment in the business鈥� IT infrastructure, practice-management software, BIM software and related training and hardware.

Fees generated per architect increased by just over 10% year-on-year, at 拢162,286 in 2022, up from 拢146,832 the previous year.

The strategic report said economic risks in the UK and the world economy 鈥渞emain a concern鈥�. It added that staff retention was 鈥渁 risk鈥� because of the impact on the international staff base of the increased cost of living in London.

However, it predicted 鈥渇urther growth鈥� for 2023 and said there is 鈥渟trong鈥� value under contract for 2024.

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Regionally, work in Europe and the Middle East accounted for the largest slice of Chipperfield鈥檚 revenue: 拢4.32m. UK work came second at 拢3.47m, followed by work in North America and South America on 拢2.53m and 鈥渞est-of-world鈥� revenue of 拢2m.