Director Schumacher warns of ongoing 鈥渦ncertainty鈥� about post-Brexit recruitment arrangements for non-UK staff
Zaha Hadid Architects has posted a tenfold drop in pre-tax profit despite a 7.2% increase in revenue, its latest annual accounts reveal.
The practice said pre-tax profit in the year to 30 April 2022 was 拢917,947, . But revenue increased from 拢63.5m to 拢68.1m over the same period.
Average headcount at the practice was 520 during the year, up from 440 in 2021. ZHA said an increase in the number of production staff was responsible for the growth. Its accounts said the cost of salaries increased from 拢27.5m in 2021 to 拢38.6m last year, exclusive of social security payments and pensions.
A regional breakdown of ZHA鈥檚 revenue showed work in Asia accounted for the vast majority of its turnover 鈥� 拢52.4m in 2022, up from 拢41m in 2021. Turnover from Europe, excluding the UK, dipped from 拢14.1m in 2021 to 拢9.4m. Middle East income also dropped from 拢5.9m to 拢3.5m. UK revenue increased from 拢539,619 to 拢641,069.
Practice director Patrik Schumacher said in an overview section of the accounts that the firm currently has 32 buildings in construction in 17 different countries.
But he cautioned that three years after the UK鈥檚 formal departure from the European Union, the impact of Brexit in relation to recruitment remains a significant risk for the business.
鈥淭here is considerable uncertainty on the post-Brexit visa arrangements for skilled persons moving to and working in the UK,鈥� he said.
鈥淲e are monitoring developments in this area and its possible impact on our UK recruitment.鈥�
He also described the level of competition for architectural contracts in the UK as 鈥渧ery challenging鈥� but added that the firm鈥檚 global customer spread had 鈥渕itigated the effect on the group鈥檚 business鈥�.
ZHA鈥檚 accounts showed that the business鈥� six directors took home a combined total of 拢6.2m in the year to 30 April, a 58% increase on the previous year.
The highest paid director 鈥� thought to be Schumacher 鈥� received 拢1.18m last year, down from 拢1.52m the previous year.
Yesterday, the country鈥檚 biggest practice, Foster & Partners, revealed that profit tumbled by 42% last year despite revenue at the practice increasing by a third.
It posted profit before tax of 拢21m in 2022, down from 拢36.2m in the previous year although revenue rose to 拢232.7m from 拢200.2m.
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