Architect David Chipperfield has posted a 36% rise in pre-tax profit despite a 15% drop in turnover in its annual results.
Pre-tax profit for the year ending 30 April 2006 was £167,000, up from £123,000 in 2005 but turnover fell to £4.1m compared with £4.8m in the previous year.
The firm said the drop in turnover was due to interest rate increases putting pressure on margins. It added that the group would continue to pursue work related to interior design, furniture and product design.
The group has just made sweeping changes to one of its most recent and high-profile projects, a luxury development in west London.
Initial designs for the 97 flats at De Vere Gardens, opposite Kensington Gardens, were rejected. They have now been changed to give the building more presence.
The firm has also worked on projects including the redesign of Dolce & Gabbana stores, the BBC Scotland HQ in Pacific Quay, Glasgow and the Museum of Modern Literature in Germany.