Pascall & Watson forced to book £2.1m hit

Bad debts blunted profit at transport architect Pascall & Watson last year, the firm said in its latest accounts filed at Companies House.

The practice, which is carrying out design work at several major UK airports including Heathrow, Gatwick and Manchester, said it was forced to book a £2.1m provision because of bad debts.

Pre-tax profit in 2023 slipped to £481,000 from £2.2m last time and in a note accompanying the accounts, which were signed off last month, the firm said: “Profit levels have been hampered by some legacy project challenges in the face of planned phased growth.

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Passengers wait for flights at Heathrow this summer. Heathrow is one of the airports where Pascall & Watson is carrying out design work with more airports gearing up to carry out work delayed by the pandemic

“These isolated circumstances have been resolved in the first half of 2024 with no further impacts foreseen.”

Income during the year was up a third to £32m which the firm said was down to rising work at its regional office in the UAE, an increase in hospitality jobs and more airports schemes coming back on stream following the pandemic.

Revenue at its UK business was up 10% to £21.5m while work from the rest of the world, which includes the Middle East, rose to £9m from £2.6m last time. Cash in hand was down 17% to £4.9m.