Architect firm blames EU referendum for falling profits

Aukett Swanke Group saw its six month profits tumble by almost half from the same period in 2015. June 13, 2016 / Isla MacFarlane
Architect firm blames EU referendum for falling profits

The Group recorded a profit before tax of £417,000 for the six months ended 31 March 2016, compared to a profit of £815,000 for the same period last year. According to its financial statements, the results reflect a slowdown in continuing UK instructions on existing projects as the market pauses for the outcome of the EU Referendum.

“The EU Referendum in the UK has clearly impacted these results and is likely to do so for the full financial year,” said Nicholas Thompson, CEO of Aukett Swanke. “Encouragingly the Group has benefitted from its recent investment in the UAE. In addition we anticipate improved performance in both Germany and Turkey in the second half.”

The Group said that the impact of the EU referendum is typified by two negative characteristics: firstly, apprehension at committing to significant post planning services; and a more specific anomaly with Heads of (leasing) Terms including ‘Brexit’ clauses.

Net funds also took a hit, falling from £1.9 million in 2015 to £1.5 million in 2016, after a net debt of £0.5 million to fund acquisition. Earnings per share were recorded at 0.17 pence, compared to 0.43 pence in 2015.

The Group saw its revenues rise by nine per cent to £10.0 million, compared to £9.2 million in 2015. This represents further progress to grow the size of the organisation, with revenues less sub consultant costs improving by 11% to £9.1 million from £8.2 million in 2015. This growth has been achieved through non UK revenues which are now 33% of the total, up from 18 per cent in 2015.

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