Architect claims overseas work will bolster balance sheet and keep 2009 results on track
Architect Aukett Fitzroy Robinson is to make further cost cuts in the face of worsening market conditions.
In a trading update this morning, it said: “The outlook for the UK has worsened since January with a number of projects experiencing delays. As a result further cost cuts have been made and the impact of this restructuring will be seen in the first half.”
The move comes days after Foster + Partners made a reported 300 staff redundant across the 1,300-strong business.
But results for the year ended 30 September 2009 are expected to be in line with market expectations due to its increasing reliance on overseas markets.
It highlighted the Russian market as ripe for growth and said a recent large advance payment from a major Russian financial institution would bolster the 2009 balance sheet.
“Due to the large advance payment from Russia, revenue will be increasingly dominated by non-UK based project income,” it said.
It warned there would be restructuring costs but said an improvement in second half profitability should offset the costs and ensure the group continues to be cash generative.