Architect’s international arm, which includes its UK business, reports return to profit, although its level of UK work fell
Architect HOK’s international arm, which includes its UK business, has reported a return to profit, although its level of UK work fell in 2013.
In its accounts for the year to 27 December 2013 HOK International Ltd, which includes the US-based firm’s UK arm, reported a pre-tax profit of £382,664, up from a pre-tax loss of £935,534 the previous year.
Turnover was flat at £21.9m in 2013, compared with £21.3m in 2012.
However, the firm’s UK work fell from 63% of its total workload to just 34%, with revenue in the UK down from £13.4m to £7.5m.
European revenue was flat at £2m, but revenue from outside of the UK and Europe rose dramatically from £5.9m to £12.5m.
The firm reported a fall in revenue from interiors and consulting work, with each shrinking 23% to £1.4m and 81% to £103,329 respectively.
But this was offset but an upturn in revenue from architecture work, which rose from £18.9m the previous year to £20.4m.
The firm designed the new Francis Crick Institute (pictured) as well as a new residential scheme above Crossrail’s Fisher Street station, both in central London.
Writing in the accounts HOK finance director Andrew Childs said that 2013 “represented a return to consistent profitability, having delivered two years of profit and two years of loss in the preceding four years”.
He said that to the end of August 2014 the company contracted 24% more work than it had at the same point in 2013 and 177% more than it had contracted at the same point in 2012.
He added that the balance sheet remained strong with £5.2m of cash compared to £3.4m at 31 December 2012.
The accounts also revealed that £40,000 was paid to one of the firm’s directors as “compensation for loss of office”.
Former HOK managing principle Rob Firth, who resigned in March 2013, was the only director to leave the firm during the period the accounts cover.