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

Architect Aukett Fitzroy Robinson’s UK operations generated profit of £22,000 as opposed to a loss of over £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 £299,000 to the six months to the end of March, and a reduction in net debt to below £1m.

The company also said it has recovered a further £1m of “outstanding monies” in April and May and that it expected to add over £1.2m to its cash flow from its successful court case against developer Simon Halabi.

Aukett won its case for £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 £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 “unlikely to have any direct impact on the UK operation as less than 5% of revenue is from this source”.

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 £2m in 2009 turned to a loss of £342,000, and revenue fell to £181,000 (2009: £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:

 “We 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.

 “With 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.”

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