HOK stays in red for second year running
The international arm of Francis Crick Institute architect HOK turned in another loss last year with the firm blaming bad debts, rent hikes and salary increases for remaining in the red.
In its accounts for the year to 25 December 2015, HOK International saw it increase pre-tax losses from 拢455,000 to 拢463,000 鈥� although turnover was up 5% to 拢22 million. Its operating loss was up 11% to 拢443,000.
Finance director Andrew Childs said HOK was hit by a bad debt charge of 拢225,000 for a scheme in Turkey and also had to shoulder a rent hike of 拢94,000 at its London office. It also racked up 拢246,000 in foreign exchange losses while its salary bill went up 拢340,000.
Overall admin expenses went up just over 拢1 million to 拢10.3 million which offset a rise in gross profit. Childs said it was 鈥渦nfortunate and disappointing that the improvements in turnover and gross profit margin did not materialise in an improvement in operating result鈥�.
Turnover in the UK slipped 13% to 拢10.7 million 鈥� meaning the country鈥檚 share of revenue was below the 50% mark 鈥� as its work on the Crick in north London and Barts Hospital in the City finished but workloads across Europe, where it has won a high-profile contract to design a new basketball arena for FC Barcelona (pictured), nearly doubled. Revenue from the rest of the world was up nearly a quarter to 拢9.5 million.
The firm, which is bidding for the chance to carry out work on the planned 拢4 billion revamp of the Palace of Westminster, recently won a scheme to design new campus buildings for a new university complex being built in Kuwait. And it is also designing a new research hub at Glasgow university.
Childs added: 鈥淭he year ended with more contracted work than at the preceding statement of financial position date for the second year running.鈥�
The number of staff at the business edged up to 164 from 156 while the salary of the highest-paid director, who is not named, went up a third to 拢271,000.
No comments yet