Owner of Will Alsop's former firm blames 'unprecedented trading conditions' for performance in first half of 2009
Listed architect Archial made a loss of £3.4m after tax in the six months to June, after revenues dropped 18% following the cancellation of work.
The firm, which is the owner of Will Alsop's former firm Alsop, saw revenues drop from £22m to £18m, and recorded a profit before tax and exceptional items of £1.7m. However, the firm has written down £3.85m of bad debt against work being cancelled or postponed, leading, with tax and restructuring costs, to the overall loss.
The firm also said it had performed well since the end of the half year, with its forward order book rising 5% in July, reversing a continuous erosion since May 2008. It now has £34.7m of forward orders, having received £8.5m of work since the end of the half-year.
Archial chairman sir Rodney Walker said: “With the vast majority (96%) of our anticipated turnover for the remainder of 2009 already instructed, and a good proportion of our anticipated turnover for 2010 also instructed, we are confident of a strong and improved second half performance resulting in a commendable outcome for the year as a whole.”
He added: “The unprecedented trading conditions experienced by all and especially those in the construction sector, have resulted in a portion of the group's secured work being postponed or cancelled, with its inevitable effect on our trading performance.”