Architect Aukett Fitzroy Robinson has issued a profit warning after being hit by retrospective fee cuts in the Middle East

It had been expected to make a loss in the six months to 31 March 2009, owing to restructuring costs, but the company said writedowns in the UAE had increased the figure.

It added: “In addition, a large-scale Middle East project is to be re-tendered, even though a letter of intent had been received against which we were holding a large UK staff contingent.”

Last month Building reported that Abu Dhabi developer Aldar had asked for 20% fee cuts from architects and engineers.

The company had £1.2m in cash on 31 March and said it was “sufficiently robust” to achieve a profit for the full-year.